More issuances of tokenized securities likely amid demand for digital assets

March 27, 2024 | 5:21 pm

IMPROVING APPETITE for digital assets may result in more issuances of debt instruments using the blockchain like the tokenized bonds offered by the government last year, the top official of a cryptocurrency exchange said.

PDAX Founder and Chief Executive Officer Nichel Merlimichael O. Gaba told reporters at the sidelines of an event on Tuesday that following the strong appetite seen by the Bureau of the Treasury (BTr) for its maiden tokenized bond issue last year, another offering could be possible.

“There was a lot of demand [for the first offer]. I wouldn’t be surprised if they issued another one this year, but we’ll only know if they make a public announcement,” Mr. Gaba said, noting this would depend on the government’s funding requirements.

The BTr raised P15 billion from its maiden issuance of tokenized bonds last year as demand reached P31.426 billion, more than three times the target issue size of P10 billion.

The one-year notes fetched a coupon rate of 6.5%.

The fixed-rate government securities, which pay a semi-annual coupon, were issued in the form of digital tokens to be maintained in the BTr’s Distributed Ledger Technology Registry.

PDAX last year partnered with the BTr, the Land Bank of the Philippines, and the Development Bank of the Philippines to facilitate the issuance of the tokenized bonds and offer them to retail investors.

Mr. Gaba said other types of publicly- or privately-issued securities could be put on the blockchain in the future to expand access for retail investors.

“We’ve always been big believers that blockchain technology can enable access to what was previously inaccessible. To buy a T-bill (Treasury bill), you probably have to shell out hundreds of thousands or billions — and that is something that blockchain technology is perfectly designed to solve,” he said.

“We’re not exactly sure when that will happen, but putting the Treasury bonds on the blockchain and making it available to Filipinos for as little as P500 is a phenomenal start, and we can expect tokenized securities to be life-changing for most Filipinos,” he added.

Mr. Gaba said increased adoption of cryptocurrency in the country will be supported by developments in digital asset regulation.

He noted that PDAX saw an influx in users and surge of trading activity since Bitcoin began gaining, with trading multiplied by four times in the last three months. — A.M.C. Sy

RCBC Trust’s AUMs hit P161 billion

March 27, 2024 | 5:21 pm

THE TRUST arm of Rizal Commercial Banking Corp. (RCBC) recorded P161 billion in assets under management (AUMs) as of February amid strong client growth, it said on Tuesday.

This was an increase from the P147.49 billion recorded as of March 2023, RCBC Trust Corp. said in a statement.

The company’s market share among electronic money issuers also grew, with investments increasing to P1 billion from P200 million in the same period.

“Additional services such as investment advisory and estate planning are now being offered by RCBC Trust Corporation. We believe that these two services will be additional avenues of growth for the company,” RCBC Trust President and Chief Executive Officer Robert B. Ramos added.

RCBC Trust began operating on Jan. 1 as the listed bank spun off its trust unit into a stand-alone firm.

Its parent RCBC’s attributable net income rose by 1.14% to P12.218 billion in 2023 amid higher loans and deposits.

RCBC shares gained 40 centavos or 1.74% to end at P23.40 apiece on Wednesday. — A.M.C. Sy

Peso rises on increased inflows before trading break

March 27, 2024 | 5:18 pm

THE PESO appreciated against the dollar on Wednesday amid increased remittances ahead of the long weekend.

The local unit closed at P56.24 per dollar on Wednesday, strengthening by eight centavos from its P56.32 finish on Tuesday, Bankers Association of the Philippines data showed.

The peso opened Wednesday’s session at P56.28 against the dollar. Its weakest showing was at P56.329, while its intraday best was at P56.18 versus the greenback.

Dollars traded went down to $1.18 billion on Wednesday from $1.55 billion on Tuesday.

The peso rose on the back of remittances ahead of the long weekend, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“Consolidation was still the main theme for the pair with Holy Week inflows capping the intraday ranges. Today, the dollar-peso pair continued consolidating as month- and quarter-end requirements go against Holy Week inflow hedging,” Security Bank Corp. Chief Economist Robert Dan J. Roces likewise said in a Viber message.

Philippine financial markets will be closed on Maundy Thursday and Good Friday. — A.M.C. Sy

Geotagged travel posts increase risk of cyber threats, crimes

March 27, 2024 | 5:01 pm

SHARING LOCATIONS on social media platforms when traveling increases the risk of being targeted by cyber threats and real-life crimes, according to Kaspersky.

“Posting a geotag may endanger users even if they are not in this place at the moment, as it shows perpetrators that there is a place where they can easily be tracked,” Kaspersky General Manager Yeo Siang Tiong said in a statement.

Mr. Yeo also advised users to think twice when sharing on social media, noting that delayed posting is ideal.

Using information found online, users’ locations, current activities, travel histories, and interests are enough to create a detailed profile of a potential target, he said.

These can be exploited for various malicious purposes, such as phishing and identity theft, Mr. Yeo said.

Victims must “identify and stop any pending payments to the scammers and terminate any compromised credit cards to prevent additional unauthorized charges,” he said. — Aubrey Rose A. Inosante

Airbnb, SPARK! team up to boost women tourism entrepreneurship in PHL

March 27, 2024 | 5:00 pm

AIRBNB is investing $100,000 in training programs to provide women in the Philippines access to employment opportunities in the tourism sector, it said on Monday.

Airbnb and SPARK!, a non-profit organization focused on women’s entrepreneurship, signed a memorandum of understanding on Monday, the former said in a statement.

“With the Philippines leading the pack with the second largest women-led Airbnb Host community globally, this partnership for us goes beyond agreements; it is a unified mission to uplift women and enhance the backbone of our tourism industry,” Airbnb Head of Public Policy for Southeast Asia, India, Hong Kong, and Taiwan Mich Goh said.

In addition to the training programs, SPARK! will also focus on job-matching within the tourism sector.

“Our commitment extends beyond training; we are dedicated to creating a pathway for women to access meaningful and empowering opportunities may it be through employment or entrepreneurship or both,” SPARK! Philippines Executive Director Mikaela Luisa Carmen R. Teves said.

SPARK! will lead the yearlong program that was recently piloted in Quezon City with the support of the local government unit.

“Women are the perfect ambassadors for tourism. Through this program, we hope that more women can explore business models that would boost local tourism, generate more job opportunities, and contribute to the development of the city,” Quezon City Mayor Josefina “Joy” G. Belmonte said.

“Private and public sector partnerships like Airbnb’s initiative showcase the transformative power of education in unlocking opportunities for economic growth and development,” said Department of Tourism Office of Industry Manpower Development Director Arlene A. Alipio. — A.R.A. Inosante

PSEi climbs to 6,900 level on last-minute bargain hunting

March 27, 2024 | 4:51 pm

THE MAIN INDEX climbed to the 6,900 level on Wednesday as investors continued to pick up bargains before a two-day break.

The bellwether Philippine Stock Exchange index (PSEi) went up by 0.07% or 5.36 points to close at 6,903.53 on Wednesday, while the broader all shares index rose by 0.24% or 8.96 points to end at 3,607.51.

“The local bourse gained by 5.36 points (0.07%) to 6,903.53 on last-minute bargain hunting,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“The market mostly traded in the red following the negative cues from US markets overnight, while maintaining a cautious stance ahead of the long weekend. Still, investors took the chance to buy at bargain levels,” she added.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message that the PSEi was mostly flat amid the shortened trading week.

Philippine financial markets will be closed for Maundy Thursday and Good Friday.

“Traders are currently waiting for data on US gross domestic product growth, consumer sentiment, and jobless claims to be released before the US market closes on Good Friday,” Mr. Limlingan added.

Majority of sectoral indices ended lower, with services being the biggest decliner as it dropped by 0.76% or 14.21 points to 1,851.02. Property lost 0.27% or 7.66 points to close at 2,809.81; holding firms retreated by 0.24% or 16.06 points to 6,461.22; and mining and oil went down by 0.09% or 7.52 points to 8,123.30.

Meanwhile, financials rose by 1% or 20.21 points to 2,034.27, and industrials climbed by 0.74% or 66.87 points to 9,099.58.

“Among the index members, Century Pacific Food, Inc. surged the most by 8.70%, while DMCI Holdings, Inc. was at the bottom, losing by 6.89%,” Ms. Alviar said.

Value turnover rose to P10.67 billion on Wednesday with 2.44 billion issues switching hands from the P7.62 billion with 698.89 million shares traded on Tuesday.

Advancers outnumbered decliners, 102 against 81, while 58 names closed unchanged.

Net foreign selling declined to P310.52 million on Wednesday from P1.80 billion on Tuesday. — R.M.D. Ochave

First Gen seeks bidders for new LNG supply

March 27, 2024 | 4:41 pm

Lopez-led First Gen Corp. is seeking bidders for a new supply of liquefied natural gas (LNG) to be used in its gas-fired power plants in Batangas.

The company, through its subsidiary First Gen Singapore Pte. Ltd., intends to procure a single LNG cargo amounting to 100,000 to 135,000 cubic meters, according to a bid notice.

The award to the selected bidder will be announced on April 12, and the delivery window will commence from May 25 to May 31.

The supply of the LNG cargo will be via a delivered ex-ship basis at the port located at First Gen Clean Energy Complex, where it will be loaded onto the BW Batangas, a floating storage and regasification unit.

“First Gen reserves the right at its sole discretion to cancel the invitation to bid or to reject any or all bids prior to the acceptance of a bid or proposal,” the company said.

In February, First Gen initiated an emergency tender process for a fourth LNG cargo, with a target delivery in March, in the interest of energy security.

However, the energy company postponed the purchase of the new LNG cargo as it needs commitment from Manila Electric Co. (Meralco) regarding the recovery of full costs and approval for LNG use..

Meralco Regulatory Affairs Head Jose Ronald V. Valles has said that the power distributor is waiting for guidance from the Energy Regulatory Commission (ERC).

In an order dated Feb. 29, the ERC directed Meralco and the subsidiaries of First Gen to submit documents on or before March 6 for review regarding the approval of the fuel costs that were passed on to consumers.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Hotel group sees 80% occupancy during Holy Week

March 27, 2024 | 4:41 pm

The Philippine Hotel Owners Association Inc. (PHOA) anticipates an 80% occupancy rate during this year’s Holy Week, driven by increased travel to beach destinations.

“Last-minute bookings, especially from Thursday to Saturday, may also drive demand for city hotels, particularly from the staycation market,” PHOA Executive Director Benito C. Bengzon Jr. told BusinessWorld on Tuesday. PHOA is a non-profit organization with 206 hotel members nationwide.

He attributed the increased bookings to travelers taking advantage of discounts and promotions offered during the break.

Some prefer staying in a three-star hotel with a pool as a cheaper option, he said.

According to the latest consumer trends study led by the travel platform Klook, domestic travel is projected to reach 92% this year. Tagaytay, Baguio, Boracay, and Palawan are the preferred domestic travel spots.

Filipinos, or “balikbayans,” travel in large groups since it is cheaper and helps to reduce booking expenses. PHOA said its members’ guests are mostly families with kids and young adults.

Similarly, Klook found that Filipinos preferred traveling in large groups of three to six people.

Despite the hotel group’s optimism for tourism recovery, it said booking and revenue figures are far from their pre-pandemic levels.

He cited the recorded foreign arrivals of 5.5 million in 2023, according to the Department of Tourism (DoT), which is below the 8.2 million international visitors in 2019.

The Philippine Statistics Authority saw 102 million domestic trips from 2022 to mid-2023, with P1.5 trillion in domestic tourism expenditure.

As of March 1, the DoT has recorded 1.2 million total visitor arrivals this year.

According to Mr. Bengzon, guests can expect higher rates this year due to inflation.

“Despite the increased costs of labor, utilities, and direct expenses, the hotel aims to maintain accessibility for its customers, especially for leisure travelers during peak seasons, such as Holy Week,” he said.

PHOA has also observed that guests prefer booking through digital travel platforms such as Agoda and Booking.com, and their stays typically span two to three days. — Aubrey Rose A. Inosante

CREC raises P5 billion from sale of shares to SMIC

March 27, 2024 | 4:41 pm

Citicore Renewable Energy Corp. (CREC) said it raised P5 billion after selling its shares in its real estate investment trust to conglomerate SM Investments Corp. (SMIC).

The energy company sold a total of 1.88 billion common shares, equivalent to 28.79% in Citicore Energy REIT Corp. (CREIT) at P2.6534 per share, the Saavedra-led company said in a statement on Wednesday.

The transaction was carried out with CREC’s subsidiary Citicore Solar Tarlac 1, Inc.

“We believe that the SM group’s entry and investment into CREIT and the partnership with CREC unlocks potential synergies given the energy requirements of the SM group,” CREC President and Chief Executive Officer Oliver Tan said.

CREC said it will continue to be “the single largest stakeholder” in CREIT with a 32.88% effective ownership post-transaction.

“As part of our group-wide sustainability agenda to prioritize environmental responsibility and support a low-carbon economy, we are investing in CREIT to increase SM’s footprint in the renewable energy sector,” SMIC President Frederic C. DyBuncio said.

Proceeds from the sale will contribute to the development of CREC’s ready-to-build and under construction solar power projects with a total capacity of 1,583 megawatts, the company said.

BDO Capital & Investment Corp. acted as transaction adviser for the sale.

In a separate disclosure, SMIC said it does not see “any material impact” on its financials or operations.

“This deal shows SM’s commitment to expanding in the renewable energy space. Nonetheless, it is also a bet on real estate since CREIT is the country’s largest renewable energy REIT landlord,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

He said the deal is a “win-win” for the conglomerate since it is “supporting the renewable energy sector in a way that is still within its core property business.”

CREIT is the country’s first real estate investment trust listing focused on renewable energy.

VOLUNTARY SUSPENSION
In a stock exchange disclosure prior to the announcement, CREIT said it voluntarily submitted itself to a trading suspension following the “successful crossing of shares.”

“The voluntary trading halt is requested to give the investing public sufficient time to consider or assess the impact of the execution of the block sale before transacting CREIT shares,” the company said.

The trading suspension was implemented starting at 9:30 a.m. on March 27 and will be lifted on April 1 at 9:00 a.m.

CREC is targeting to go public by the second quarter, aiming to raise as much as P12.9 billion.

It was supposed to conduct its initial public offering in March.

The company is set to offer 2.9 billion common shares at a maximum price of P3.88 apiece, including an additional 435 million outstanding common shares for overallotment. — Sheldeen Joy Talavera

Converge ICT joins efforts in blocking access to Binance

March 27, 2024 | 4:41 pm

Listed internet service provider Converge ICT Solutions, Inc. has also started blocking online access to cryptocurrency exchange Binance.

“Upon receiving the NTC (National Telecommunications Commission) memorandum and pursuant to SEC (Securities and Exchange Commission) directive, we have blocked the identified Binance website in our network,” Paulo Martin G. Santos, Converge executive vice-president and chief network transformation officer, said in an e-mailed statement on Tuesday.

The corporate regulator’s move aims to prevent further proliferation of Binance as it has been operating in the country without a license.

“We join our regulators in the advocacy for greater online protection for consumers, our customers, and the investing public,” Mr. Santos said.

Globe Telecom, Inc. and PLDT Inc. have also blocked online access to Binance within their networks.

BusinessWorld has yet to receive a reply from DITO Telecommunity Corp.

Globe said it has been working to block access to Binance’s websites and related web pages, but advertisements on social media platforms are not within the company’s control.

SEC has sought assistance from Google and Facebook operator Meta to prevent Binance’s online advertisements from targeting users in the Philippines.

Binance is considered the largest cryptocurrency exchange in the world, with more than 183 million members and an average daily trading volume of $65 billion, covering over 402 cryptocurrencies. — Ashley Erika O. Jose

SEC cautions public against FX Affiliate, MVL Mall

March 27, 2024 | 4:41 pm

THE Securities and Exchange Commission (SEC) has warned the public against investing in FX Affiliate and MVL Mall.

The commission flagged the two entities in separate advisories posted on its website.

The SEC said that FX Affiliate is allegedly engaged in foreign exchange trading through its artificial intelligence robot called zheroFx.

The entity offers a robot subscription incentive where a minimum investment of P1,000 per account could earn P200, equivalent to 20%, up to five times within a maximum period of 60 days, allowing for 100% earnings in just 60 days or double the amount of investment after the said period.

FX Affiliate also reportedly offers unlimited referral incentives worth P100 for every new subscription; unlimited indirect referrals worth P5 every time the upline’s downline recruits or avails; and unlimited leadership incentives, where the member will earn 10% equivalent to the total earnings of direct and indirect recruits.

Meanwhile, MVL Mall claims to be an intermediary company engaged in increasing the transaction volume of online merchants and assisting merchants on e-commerce platforms such as Lazada and Shopee in improving sales volume.

The entity is allegedly offering an online job involving grabbing or placing orders from their website. It promises commissions ranging from 20% to 50% per order, which can only be withdrawn after paying a so-called tax charge.

The SEC also said that MVL Mall is presenting a copy of a bogus registration certificate to entice investments from the public.

“As such, the Securities Regulation Code requires that said offer and sale of securities must be duly registered with the commission and that the concerned entity or its agents should have the appropriate registration or license to sell such securities to the public,” the SEC said. — Revin Mikhael D. Ochave

Jollibee group invests $28M for 10% stake in beverage tech company Botrista

March 27, 2024 | 4:41 pm

Listed Jollibee Foods Corp (JFC) announced on Wednesday a $28-million investment to acquire a 10% stake in US-based beverage technology company Botrista, Inc.

“We look forward to Botrista’s rapid and asset-light distribution and channel expansion that will create more value to its partners and ultimately, the end consumers,” JFC Chairman Tony Tan Caktiong said in a statement.

Botrista holds more than 100 patents worldwide for its proprietary dispense technology, which provides automated solutions to serve cold specialty coffee and tea-based drinks.

JFC’s wholly owned subsidiary Jollibee Worldwide Pte. Ltd. will be the lead investor. The funds will come from its current surplus cash.

JFC’s brands in the coffee and tea business include Coffee Bean and Tea Leaf, Common Man Coffee Roasters, and Highlands Coffee.

“This gives JFC an opportunity to leverage Botrista’s technological capabilities, which will create significant learnings and synergies that will further enhance JFC’s competitive advantage,” the fast food giant said.

“It will pave strategic access to innovative and sustainable platform and technology, creating gateway to tap the $3 trillion-worth total addressable market for beverages industry globally, by expanding distribution channels and providing consumers with healthier options,” it added.

On Wednesday, JFC shares fell by 0.55% or P1.40 to P252.60 apiece. — Revin Mikhael D. Ochave