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Moody’s affirms Security Bank’s ratings, revises outlook to negative

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MOODY’S RATINGS has affirmed Security Bank Corp.’s ratings but revised the outlook to “negative” from “stable” as it expects its capital position and asset quality to face pressures amid strong long growth. 

Moody’s affirmed the listed bank’s Baa2/P-2 long-term (LT) and short-term (ST) local-currency (LC) and foreign-currency (FC) deposit ratings, Baa2 FC senior unsecured rating, Baa2/P-2 LT and ST LC and FC issuer ratings, Baa2/P-2 LT and ST LC and FC counterparty risk ratings, and Baa2(cr)/P-2(cr) LT and ST counterparty risk assessments, it said in a statement on Tuesday. 

It also affirmed the baa3 baseline credit assessment (BCA) and adjusted BCA of the bank, as well as the (P)Baa2 FC rating on the lender’s senior unsecured medium-term note (MTN) program and its (P)P-2 FC other ST rating. 

“We revised the outlook on Security Bank’s deposit, issuer and senior unsecured ratings to negative from stable mainly because of negative pressure on the bank’s capital buffer,” Moody’s said. “The rating action also considers the potentially negative impact of the bank’s strong loan growth and weakened ability to absorb future losses, under our environmental, social and governance framework, because it reflects Security Bank’s relatively aggressive financial strategy and risk management, which could negatively impact the bank’s credit profile.” 

“At the same time, errors in 2023 and 2024 annual audited financial statements, though corrected subsequently, highlighted weaknesses in the bank’s internal controls relative to peers, potentially raising operational risk. These challenges are reflected in a moderate governance issuer profile score of G-3,” it added. 

The credit rater said it affirmed Security Bank’s deposit ratings and BCA to reflect its “average” solvency and liquidity metrics and its “weaker-than-peers funding structure.” 

Meanwhile, it downgraded its outlook on the ratings to negative as it expects its capitalization, as measured by tangible common equity as a percentage of risk weighted assets (TCE/RWA), to remain under negative pressure. 

“The bank’s TCE/RWA declined to 13.7% as of December 2024 from 17.0% a year earlier, as loan growth accelerated to 25% in 2024 from 7% in 2023. Including the upcoming acquisition of a minority stake in Home Credit Philippines, a consumer finance company, we expect TCE/RWA to decline below 13%,” Moody’s said. 

In December, Security Bank announced that it will acquire MUFG Bank Ltd.’s 25% stake in HC Consumer Finance Philippines, Inc. (HCPH) or Home Credit Philippines for P11 billion. It targets to complete the transaction this year. 

Moody’s expects Security Bank to post a loan growth of about 10% this year, adding that the lender’s capital ratios would continue to decrease if rapid credit expansion continues over the next year. This, after loan growth outpaced return on equity (RoE) in 2024, it noted. 

Rapid loan growth has affected the bank’s asset quality, the credit rater said, with its loan loss reserves also lower than the industry average. 

The robust expansion of its retail lending business also poses unseasoned loan risks, it added, with higher credit costs outweighing the earnings boost provided by the sector. 

“In 2024, loan loss provisions as a percentage of gross loans increased to 0.94% from 0.79% the year before. We expect credit costs to stay elevated and profitability to remain broadly stable at current levels over the next 12 to 18 months,” Moody’s added. 

It also noted that Security Bank’s funding structure deteriorated “modestly” last year with the share of low-cost current and savings account deposits to the total also declining, “reflecting an increase in reliance on market funds to support loan growth and protect margins.” 

Still, the bank’s liquidity position remained sufficient for its short-term funding needs, the debt watcher added. 

Moody’s said it is unlikely to upgrade Security Bank’s ratings in the near term as they are already at the same level as the Philippines’ sovereign credit rating. 

“We could downgrade the bank’s deposit ratings and BCA if the bank’s TCE/TWA falls below 12% due to the loan growth surpassing RoE or if asset quality deteriorates, leading to an increase in credit costs and consequently lower profitability. A significant weakening in Security Bank’s funding and liquidity would also be negative for the BCA and ratings,” it said. 

“We could revise Security Bank’s outlook to stable if the bank’s TCE/RWA remains above 12% and if net income/tangible assets stays above 1% on a sustained basis,” Moody’s added. — BVR 

BSP, IFC pushing for movable asset financing to boost credit access 

BANGKO SENTRAL ng Pilipinas Governor Eli M. Remolona, Jr. said their partnership with the International Finance Corp. will help improve small businesses’ access to credit. -- BANGKO SENTRAL NG PILIPINAS

THE BANGKO Sentral ng Pilipinas (BSP) has signed a memorandum of understanding (MoU) with the International Finance Corp. (IFC) to jointly develop the country’s movable finance market as they hope to improve micro, small, and medium enterprises’ (MSMEs) and the agriculture sector’s access to credit. 

The BSP-IFC partnership will run until 2027 and will focus on regulatory reform, sector capacity building, and supporting services development, the central bank said in a statement on Wednesday. 

“The BSP looks forward to working with IFC to build a dynamic movable asset finance (MAF) ecosystem. With this, micro, small, and medium enterprises and agri-enterprises can use their available assets to access financing for their working capital and other needs,” BSP Governor Eli M. Remolona, Jr. said. 

Under the MoU signed on March 7, the BSP and IFC will jointly promote MAF, a lending approach that allows borrowers to secure loans with movable assets like inventories, receivables, and equipment. 

“This approach is designed to benefit borrowers who lack real property to serve as loan collateral, particularly those from the MSME and agricultural sectors,” the central bank said. 

“While the Philippines has the Personal Property Security Act in place, there is still a need to promote MAF. According to a 2022 IFC study, finance involving movable assets in the country remained under 5%,” the BSP said. “The partnership between the BSP and IFC is meant to complement the law and significantly increase loans secured by movable assets.” 

BSP Deputy Governor Bernadette Romulo-Puyat said the partnership is in line with the central bank’s National Strategy for Financial Inclusion 2022-2028. — AMCS

PDIC renews bilateral cooperation deal with Korean counterpart 

THE PHILIPPINE Deposit Insurance Corp. (PDIC) has renewed its bilateral cooperation agreement with the Korea Deposit Insurance Corp. (KDIC). 

PDIC President and Chief Executive Officer Roberto B. Tan and KDIC Chairman and President Yoo Jae Hoon signed a memorandum of understanding (MoU) on March 25 for the collaboration, which was forged in 2014 and earlier renewed in 2019, PDIC said in a statement. 

The latest partnership between the two deposit insurance agencies (DIA) is effective for five years and may be renewed again. 

“The MoU institutionalizes continued cooperation and information-sharing between the two DIAs in the areas of deposit insurance, receivership and liquidation, bank resolution, risk management, premium assessment for banks, sources and methods of funds, information technology for database administration, legal and administrative procedures, and public awareness issues,” PDIC said. 

“The agreement … attests to the mutual commitment of the Philippines and Korea to sustain the enhancements of their respective deposit insurance systems.” 

PDIC and KDIC are members of the International Association of Deposit Insurers. 

“The continuing collaboration between the two DIAs is aligned with the IADI Core Principles for Effective Deposit Insurance Systems, particularly the Core Principle on cross-border issues, which provides that formal information-sharing and coordination arrangements should be in place among DIAs in relevant jurisdictions.” — A.M.C. Sy

Peso slips before Holy Week break 

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THE PESO inched down against the dollar on Wednesday on profit taking before the trading break. 

The local unit closed at P56.80 per dollar, slipping by three centavos from its P56.77 finish on Tuesday, Bankers Association of the Philippines data showed. 

The peso opened Wednesday’s session weaker at P56.80 against the dollar, which was also its worst showing for the day. Meanwhile, it reached an intraday high of P56.50 versus the greenback. 

Dollars traded went up to $2.3 billion on Wednesday from $2.13 billion on Tuesday. 

Philippine financial markets are closed on April 17 (Maundy Thursday) and 18 (Good Friday). 

“The dollar-peso initially rose to P56.50 on mounting concerns over the global economy. However, [there was] profit taking at the short position, allowing the pair to close at P56.80 ahead of the long weekend and US retail sales data,” a trader said in a phone interview. 

The peso depreciated slightly as players took advantage of the weaker dollar recently to secure their funding requirements, especially before the Holy Week break, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.  

The dollar resumed its descent on Wednesday, dropping across the board and losing the most ground to the Swiss franc and the euro as a new bout of tariff-induced nerves gripped markets, Reuters reported. 

The dollar has been a casualty of shaken confidence in the United States as radical tariffs have been threatened, enforced and then partially postponed over a wild few weeks for world trade and markets. 

While it managed to find its footing earlier this week — even eking out small gains on Tuesday — by Wednesday, European trading of the US currency was headed back towards last week’s lows. 

The latest jitters follow a US decision to impose restrictions on chip exports to China, and President Donald J. Trump’s launch of a probe into whether critical minerals should face tariffs. 

The dollar was last down 1.2% on the Swiss franc at 0.8137 francs, just slightly above Friday’s 10-year low and was also 0.8% lower against the Japanese yen at 142.1, a seven-month low. 

The euro has had an overdue pullback from a surge to last week’s three-year high of $1.1474. But by the Asia afternoon it had found a footing and advanced 0.6% to $1.1346 — sending the dollar index back below 100. 

Traders were also keeping an eye on talks between Japan’s economy minister Ryosei Akazawa and Treasury Secretary Scott Bessent, as there is speculation the countries agree on a stronger yen. 

Positioning, however, as of last week’s data, showed the largest net yen long on record stretching back to 1986, meaning there could be a heavy reversal if there are signs the talks do not go well. 

Also still to come are US retail sales, an appearance from US Federal Reserve Chairman Jerome H. Powell and a Bank of Canada meeting where markets are uncertain whether policymakers will cut or hold interest rates. — A.M.C. Sy with Reuters 

ERC allows NGCP to recover P28.29 billion from consumers 

BW FILE PHOTO

By Sheldeen Joy Talavera, Reporter  

Transmission charges are expected to increase as the Energy Regulatory Commission (ERC) authorized the National Grid Corp. of the Philippines (NGCP) to collect P28.29 billion in under-recoveries from consumers. 

The ERC said in a statement that it has completed NGCP’s fourth regulatory period (4th RP) rate reset spanning 2016 to 2022 following its commission meetings. 

In a decision by the majority composed of Commissioners Alexis M. Lumbatan, Floresinda G. Baldo-Digal, and Marko Romeo L. Fuentes, the ERC approved a maximum allowable revenue (MAR) of P335.78 billion for NGCP for the said period. 

MAR is the maximum amount that NGCP is allowed to take in annually to recover its operational expenses. 

ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta and Commissioner Catherine P. Maced dissented from the resolutions adopted by the majority. 

The majority used the “As spent” approach and adopted a weighted average cost of capital (WACC) of 11.33%.  

“‘As spent’ approach, in simple terms, allows NGCP’s capital expenses to form part of the asset base regardless of if the project is completed or not. The asset base or RAB (regulatory asset base) is the basis against which the WACC rate is applied,” Ms. Dimalanta said in a Viber message. 

Following the decision, the majority gave its go signal to NGCP to collect under-recoveries, which will result in an increase in transmission charges by the grid operator. 

“These arose because the MAR approved by the Majority is higher than what NGCP has been using for most of the years within the 4RP,” Ms. Dimalanta said, referring to the under-recoveries. 

Under the seven-year recovery period set by the majority, the NGCP is allowed to collect an additional P0.1013 per kilowatt-hour (kWh) in transmission charges to be collected over the next 84 months from issuance of the decision. 

The amount covers the P0.0629 per kWh average increase in the basic transmission charge and additional P0.0384 per kWh corresponding to the under-recovered portion of the increased MAR. 

The ruling, as well as the dissenting opinions of Ms. Dimalanta and Ms. Maceda, will be “issued in due course,” the ERC said. 

Under the Electric Power Industry Reform Act, the ERC is mandated to establish methodology for setting transmission and distribution wheeling rates. The rates must be set in a way that allows the recovery of “just and reasonable costs and a reasonable return on rate base” to enable the entity to operate viably. 

The rate reset process is usually a “forward-looking” exercise that requires the regulated entity to submit forecast expenditures and proposed projects over a five-year regulatory period. The ERC assesses the actual performance of the entity and adjusts rates as needed. 

According to the ERC, the company’s 4th RP is “distinct and unique because it covers a past period, thus requiring evaluation of historical data on NGCP’s expenditures and performance.” 

Meanwhile, the majority also approved to make permanent the NGCP’s MAR for 2015 amounting to P43 million. It also greenlit the company’s claim for a net performance incentive scheme reward for 2014 amounting to P783.06 million. 

NGCP has yet to release a statement on the matter as of press time.

Holy Week in Metro Manila: What’s open and how to get around 

Fisher Mall has an ongoing Lenten Exhibit in its Event Center. It runs until Easter Sunday.

By Brontë H. Lacsamana and Patricia Mirasol

No travel plans this Holy Week? Here is a list of malls and public transport options for those staying in Metro Manila this coming long weekend.

Malls

Araneta City

April 17-18, Maundy Thursday and Good Friday – Araneta City malls, namely Gateway Mall 1 and 2, Ali Mall, and Farmers Plaza, will be closed. Meanwhile, Farmers Market will remain open with normal operating hours, although expect some of the shops and tenants to be closed

April 19, Black Saturday – Araneta City malls will be open from 10 a.m. to 10 p.m.

April 20, Easter Sunday – Araneta City malls will be open from 10 a.m. to 9 p.m.

  • Restaurants will be open until 11 p.m. daily.
  • Provincial buses, city buses, and beep jeeps will continue to operate at the Araneta City Bus Port.

Ayala Malls

April 17, Maundy Thursday – Except for Ayala Malls Harbor Point, UP Town Center, Ayala Malls Solenad, Ayala Malls Serin, Ayala Malls Vermosa, and Shops at Serendra, Ayala malls all over the country will be closed.

April 18, Good Friday – Ayala Malls Serin and Ayala Malls Harbor point will be open from 10 a.m. to 8 p.m. Ayala Malls Vermosa will be open from 10 a.m. to 9 p.m. while Ayala Malls Solenad will be open from 11 a.m. to 9 p.m. All other malls aside from the ones mentioned will be closed.

April 19 and 20, Black Saturday and Easter Sunday – All Ayala malls will resume their normal operating hours.

Festival Malls

All malls are closed on April 17 and 18, Maundy Thursday and Good Friday.

Operations on April 19-20, Black Saturday and Easter Sunday, are as follows:

  • Festival Mall Alabang – 10 a.m. to 9 p.m.
  • Fora Mall Tagaytay – 10 a.m. to 8 p.m.
  • Main Square Bacoor – 10 am.. to 8 p.m.
  • IL Corso Cebu – noon to 10 p.m.
  • Filinvest Malls Dumaguete – 10 a.m. to 9 p.m.

Fisher Malls

Fisher Mall on Quezon Avenue, Quezon City will remain open throughout Holy Week, with adjusted store hours.

April 17-18, Maundy Thursday to Good Friday – 10 a.m. to 7 p.m.

April 19, Black Saturday – 10 a.m. to 10 p.m.

April 20, Easter Sunday – 10 a.m. to 9 p.m.

Lucky Chinatown

April 17-18, Maundy Thursday and Good Friday – Closed

April 19-20, Black Saturday and Easter Sunday – 10 a.m. to 9 p.m.

Megaworld Lifestyle Malls

April 17, Maundy Thursday – Megaworld Lifestyle malls all over the country will be closed except for: Newport Mall (11 a.m. to 11 p.m.); Greenhouse at Village Square Alabang (10 a.m. to 8 p.m.); Alabang West Parade (10 a.m. to 9 p.m.); Southwoods Mall (10 a.m. to 7 p.m.); Twin Lakes Shopping Village Batangas and Newcast Beachwalk Boracay (9 a.m. to 8 p.m.).

April 18, Good Friday – Newport Mall, Alabang West Parade, Twin Lakes Shopping Village Batangas, and Newcast Beachwalk Boracay will be open. All other malls will be closed.

April 19, Black Saturday – All Megaworld Lifestyle malls will resume their normal operating hours except for Forbes Town, San Lorenzo Place Mall, San Antonio Place, Paseo Center Makati, and Three Central Mall, which will operate only from noon onwards.

April 20, Easter Sunday – All Megaworld Lifestyle malls will resume normal operating hours.

Ortigas Malls

Ortigas Malls

April 17-18, Maundy Thursday and Good Friday – GH (Greenhills) Mall, Estancia Mall, Tiendesitas, and The Strip at Circulo Verde will be closed

April 19 and 20, Black Saturday and Easter Sunday  – All the malls will be open from 10 a.m. to 10 p.m.

Power Plant Mall

April 17-18, Maundy Thursday and Good Friday – Closed

April 19, Black Saturday – noon to 10 p.m.

April 20, Easter Sunday – 10 a.m. to 9 p.m.

Robinsons Malls

April 17, Maundy Thursday – All Robinsons malls will be open except for Robinsons Manila, Robinsons Magnolia, and Robinsons Galleria.

April 18, Good Friday  – The only Robinsons malls that will be open will be Robinsons Antipolo, Robinsons La Union, Robinsons Luisita, Robinsons Tagaytay, and Cybergate Bacolod.

April 19 and 20, Black Saturday and Easter Sunday – All Robinsons malls will resume their normal operating hours.

Shangri-la Plaza Mall

April 17-18, Maundy Thursday and Good Friday – Closed

April 19-20, Black Saturday and Easter Sunday – Open (10 a.m. to 9 p.m.)

  • Twelve restaurants, including Wildflour, Starbucks, and Manam, will be open at Shang’s Streetscape on Good Friday, April 18.

SM Supermalls

April 17, Maundy Thursday – Aside from SM By The Bay, SM City Baguio, and SM City Puerto Princesa, SM malls all over the country will be closed.

April 18, Good Friday – SM By The Bay will operate from 4 p.m. to 2 a.m., and SM City Baguio will operate from 10 a.m. to 10 p.m. All other malls aside from the ones mentioned will be closed.

April 19 and 20, Black Saturday and Easter Sunday – Malls will resume their normal operating hours. Regional locations will vary, so check their specific pages.

Transport

EDSA Busway and PITX 

The EDSA Carousel Busway and all city and provincial routes at the Parañaque Integrated Terminal Exchange (PITX) will continue to operate 24/7 during Holy Week.

PUVs 

The Land Transportation Franchising and Regulatory Board’s (LTFRB) special permits for Holy Week this year were given to 1,018 public transport vehicles. These are effective until April 27, to accommodate commuters going home to their respective provinces for the long holiday.

Angkas

Angkas will continue to operate business as usual during Holy Week. Its biker-partners will remain available from April 16 to 20 without any interruption.

Philippine National Railway

April 17-20, Maundy Thursday to Easter Sunday – operations are suspended in Laguna, Quezon, Camarines Sur, and Albay due to annual maintenance activities

April 21, Monday – Regular operations

LRT-2

April 17-20, Maundy Thursday to Easter Sunday – Operations suspended for maintenance

April 21, Monday – Regular operations

MRT-3

April 17-20, Maundy Thursday to Easter Sunday – Operations suspended for maintenance

April 21, Monday – Regular operations

Deliveries

LBC Express

April 17-19, Maundy Thursday to Black Saturday – Only select branches nationwide are open

April 20, Easter Sunday – Regular operations

JRS Express

April 17-18, Maundy Thursday and Good Friday – No operations

April 19-20, Black Saturday and Easter Sunday – Limited operations

April 21, Monday – Regular operations

Foodpanda

Foodpanda’s riders work daily, including weekends and public holidays.

Philippine Competition Commission raises thresholds for deal notification

Photo shows cityscape in Bonifacio Global City in Taguig City. -- PHILIPPINE STAR/NOEL PABALETE

By Justine Irish D. Tabile, Reporter   

The Philippine Competition Commission (PCC) has raised the thresholds for mergers and acquisitions (M&As) that will require mandatory notification. 

In a statement, the PCC said companies will need to report M&As with a size of party that will reach P8.5 billion and a size of transaction that will hit P3.5 billion.  

The new thresholds have been in place since March 1. 

These were higher than the previous notification threshold of P7.8 billion for size of party and P3.2 billion for size of transaction, which were in effect from March 1, 2024 to Feb. 28, 2025. 

“Notifications filed before March 1, ongoing M&A reviews, and transactions already decided by the Commission will not be affected,” the PCC said in a statement on Wednesday. 

The PCC said thresholds for compulsory notification are adjusted annually based on the nominal gross domestic product (GDP) growth in the previous year. 

The Philippine nominal GDP, or GDP at current prices, grew by 8.8% in 2024, slower than the 10.4% pace in 2023, data from the Philippine Statistics Authority showed. 

The recent changes to the thresholds mark the eighth adjustment since the Philippine Competition Act was enacted in 2015.  

Sought for comment, Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc. said that the recent adjustment could encourage more M&A deals. 

“These thresholds reflect the evolving economic scale of businesses operating in the Philippines, potentially driven by inflation, GDP growth, and market expansion,” he said in a Viber message. 

“This move could encourage M&A activity among medium-sized enterprises, as smaller deals might fall below the notification threshold,” he added. 

In particular, he said that the recent adjustment ensures that only transactions that are likely to have substantial competitive impacts will require notification, which may reduce the administrative burden on small deals. 

Mr. Arce said the PCC will now be able to focus its resources on monitoring larger transactions that may have a bigger impact on competition.  

“This strategic update suggests a balanced approach to fostering business growth while safeguarding competitive market structures,” he added. 

Meanwhile, China Bank Capital Corp. Managing Director Juan Paolo E. Colet said that the PCC adjusted the thresholds to make it more reasonable from an economic perspective. 

“The theory is that companies and transactions get larger as the economy grows, so the baseline for compulsory deal notification should be correspondingly increased,” Mr. Colet said in a Viber message. 

However, he said that he does not see the adjustments affecting appetite for M&A deals in the country. 

“Deals will happen if they make sense regardless of PCC notification thresholds,” he said. 

“Interest rates, availability of financing, business fundamentals and growth prospects, regulatory stability, and the government’s economic policies (are more likely to affect deals),” he added.  

To date, the PCC has received notifications for 328 transactions with a combined value of P6.27 trillion. These are mostly in manufacturing (57), financial and insurance (53), real estate (47), electricity and gas (45), and transportation and storage (32). 

In 2024 alone, it reviewed 17 transactions worth P784 billion. 

Entertainment News (04/16/25)


Stations of the Cross at Araneta Center

The Stations of the Cross are on display for viewing at the Sensory Garden outside the Sagrada Familia Church in Araneta Center, Cubao, Quezon City, until April 20, except on April 17 and 18, Maundy Thursday and Good Friday.


Sneaks screens at SM Cinemas

FAMILIES and sneakerheads are welcome this summer to see the animated film Sneaks, screening exclusively at SM Cinemas. Distributed in the Philippines by Reality MM Studios, the film brings love for sneakers to life: mismatched sneakers Ty and Maxine are voiced by Anthony Mackie and Chloe Bailey, who get separated after a wild escape and must journey through the city’s boroughs to reunite. This tribute to sneaker culture and hip-hop music opens at SM Cinemas on April 19.


California-based Pinoys join disability film challenge

As part of a worldwide awareness campaign for mental health and disabilities, the five-minute short film 20/80 is available to stream until April 22. It was created by a California-based production team of Filipino filmmakers for the 2025 Easterseals Disability Film Challenge, which advocates the authentic representation of people with disabilities in media. It stars Steven Ching and is directed by Bettina Someros-Ching. The film can be seen through this link: https://www.youtube.com/watch?v=ai29mLxbQgc


Ben&Ben releases new single

FRESH off the success of their heartfelt ballad “Tomorrow with You,” Ben&Ben is back with “Saranggola,” a tribute to the enduring power of friendship. It made its debut this week in an episode of Pinoy Big Brother: Celebrity Collab Edition. Written by Paolo and Miguel Benjamin, and arranged and produced by the whole band in collaboration with long-time friend and producer Ziv, “Saranggola” is out now on all digital music streaming platforms.


Peder Elias releases new single

NORWEGIAN artist and songwriter Peder Elias Eriksrud Kjørholt has released a new single titled “Call My Name” via Sony Music. The song is about wanting to be there for someone, especially if they’re going through hard times. The 28-year-old wrote it in London with Alex Charles, Ryan Bickley, and producer Freedo. “Call My Name” is out now on all digital music streaming platforms.


Model Anthony Constantino signs with Sparkle

THE newest addition to Sparkle’s roster of artists is 22-year-old Filipino-American model and influencer Anthony Constantino. He was born and raised in California to Filipino parents and aims to embrace a deeper connection to his heritage.

ADB approves $1.45-B loan for Malolos-Clark railway project 

The Clark depot of the North-South Commuter Railway Extension Project is being built in the Clark Freeport Zone in Mabalacat, Pampanga Province in this file photo. -- PHILIPPINE STAR/MIGUEL DE GUZMAN

The Asian Development Bank (ADB) has greenlit a $1.45-billion loan for the Philippines government’s railway project connecting Malolos to Clark International Airport. 

“The Malolos–Clark Railway Project is one of ADB’s biggest project financing in the entire Asia and Pacific region. We are proud to partner with the government in making the vision of a world-class mass transportation system in the country a reality,” ADB Philippines Country Director Pavit Ramachandran said in a statement. 

“This major transformative project will spur more investments, create jobs, and contribute to sustaining the country’s growth momentum,” he said. 

The $1.45 billion is the second and final tranche of the ADB’s multi-tranche financing facility for the Malolos-Clark Railway Project. The first tranche of $1.3 billion was approved by the ADB in 2019, and has now been fully utilized. 

The project covers a 53.1-kilometer segment of the 163-kilometer North–South Commuter Railway (NSCR). It will connect Malolos, Bulacan with the Clark International Airport. 

“(The project) will reshape mass transportation in the country using disaster-resilient design and high-technology construction methods,” the ADB said.  

The Malolos-Clark railway will feature three types of commuter service — regular commuter trains, express trains with stops at high-volume stations and the country’s first airport express trains. 

The Japan International Cooperation Agency is also co-financing the railway project.  

ADB is also financing the South Commuter Railway Project of the NSCR system. 

In a separate interview with reporters on April 10, Mr. Ramachandran said the ADB is eying to approve loans worth $4 billion for 2025.  

This already includes the $1.45 billion loan for the Malolos-Clark railway, as well as financing for government programs in transportation, sustainability and health. 

Also up for approval is the $400-million Reducing Food Insecurity and Undernutrition with Electronic Vouchers (REFUEL) project will also support the Walang Gutom Program (WGP).  

“We have the support to the Walang Gutom, the food voucher program, which we hope to have approved by quarter two this year. That’s another major investment,” he said.  

The project will support the government’s initiative to provide monthly vouchers in the form of electronic benefit (EBT) cards to 750,000 food-insecure households nationwide. 

Mr. Ramachandran also expects the approval of the $400 million Marine Ecosystems for Blue Economy Development Program, aimed at fostering resilient coastal and marine ecosystems.  

The “blue” economy refers to the responsible use of ocean resources to foster economic growth, improve livelihoods, and ensure the long-term sustainability of marine ecosystems. 

The ADB also expects to approve the $300 million loan to support the Philippines’ universal health care program. 

“We have continued to work on the access project with DOH (Department of Health), so this will be support for specialty health centers, primary health care, the BUCAS units (Bagong Urgent Care and Ambulatory Services), and so basically rolling out health care facilities in the provinces and local government units,” Mr. Ramachandran said. 

The ADB in September said it is allocating $24 billion in lending to the Philippines for 2024 to 2029. – A.R.A. Inosante

Kalibo airport upgrade removed from PPP pipeline 

CAAP

THE GOVERNMENT has removed the proposed privatization of the upgrade and operations of the Kalibo International Airport Project from its public-private partnership (PPP) pipeline but added 14 new projects. 

In a document released to reporters, the PPP Center said the P3.62-billion upgrade, expansion, operations and maintenance of the Kalibo International Airport has been delisted from the pipeline. 

There was no reason given for the delisting. 

Mega7 Construction Corp. had submitted an unsolicited proposal to operate, upgrade and maintain the Kalibo International Airport, which is one of two airports serving Boracay island. 

Last year, the PPP Center said it was expecting to award the Kalibo project in 2025. 

Meanwhile, the PPP Center said it added 14 new projects, which project the number of PPPs in the pipeline to 187 with a value of P2.64 trillion as of April 11.  

Out of the 14 new projects, 11 are local projects while three are at the national level.  

Four of these new projects are unsolicited proposals. 

The biggest one is the Iloilo Global City project of the Iloilo city government and Iloilo Global City Corporation (IGCC).  

Another unsolicited project is the P5.31 billion Subic International Airport Project with Cerberus Asia Pacific Investments, LLC. as its private partner and the Subic Bay Metropolitan Authority as its implementing agency. 

The P4.3-billion Philippine Coast Guard Maritime Modernization Program is backed by the Maritime Technology Group. 

Another unsolicited proposal is the P3.97-billion Last Mile Schools Green Energy and Connectivity Project of the Department of Education and WeGen Energy Philippines. 

This project seeks to provide electricity and satellite internet connections to 3,000 schools in geographically isolated and disadvantaged areas by installing hybrid solar photovoltaic systems. 

Data from the PPP Center also showed nine solicited PPPs of the provincial government of Palawan. 

This includes the P3-billion 50-megawatt solar power plant under the Solar Power Garden Project; and the expansion of the El Nido Port Integrated Terminal Exchange (P1.75 billion), and Buliluyan Port Integrated Terminal Exchange (P1.75 billion). 

Other projects in Palawan include the P600-million Sewage and Solid Waste Treatment Facility, P580-million Sandoval Airport Development Project, P400-million Multi-Specialization Hospital and the P150-million Calauit Safari Park Improvement Project. 

The rest of the PPP projects in Palawan include the development of Dumaran Magrove Forest River Cruise and Farm Tourist Sites, both with an estimated cost of P100 million. 

Meanwhile, the P17-million Tagbilaran City Dialysis Center was also added to the PPP pipeline. 

Also, the PPP Center removed the P2.1-billion Bacolod Super City Project and P2.54 billion USWAG Condominium Complex Project from the list and placed “under implementation.” – ARAI

Fish for the faithful

Simple, affordable, and most of all, observant of Lenten dietary traditions (no meat), Mega Prime Foods has released recipes using their canned mackerel products for Lent-compliant (and surprisingly nutritious) dishes.

MACKEREL SINIGANG

Ingredients:

2 cans Mega Mackerel in brine or tomato sauce

1 medium onion, quartered

2 medium tomatoes, quartered

1 radish, sliced

1 eggplant, sliced

1 bunch kangkong (water spinach) or spinach

2-3 green finger chilies

1 packet sinigang mix (tamarind soup base)

6 cups water

Salt and pepper to taste

Procedure:

Drain the Mega Mackerel if using the brine variety. If using the tomato sauce variety, set aside the sauce.

In a large pot, bring 6 cups of water to a boil.  Add the onions and tomatoes. Let it boil for about 5 minutes.

Gently add the mackerel, including the tomato sauce if using that variety. Add the radish, eggplant, and green chilies. Cook for another five minutes.

Add the sinigang mix and stir well. Simmer for 10 minutes or until the vegetables are tender.

Add the kangkong or spinach and cook for an additional 2 minutes. Season with salt and pepper to taste. Serve hot with steamed rice.

MACKEREL SPRING ROLL

Ingredients:

1 can of Mega Mackerel in tomato sauce, drained

1 pack Mega Prime sotanghon (vermicelli noodles), soaked in warm water until soft and drained

1 cup shredded carrots

1 cup shredded cabbage

1 small cucumber, julienned

1/2 cup fresh mint leaves

1/2 cup fresh cilantro leaves

1/2 cup fresh basil leaves

1 small bell pepper, julienned

10 rice paper wrappers

For the sauce:

1/2 cup hoisin sauce

2 tablespoons peanut butter

1 tablespoon soy sauce

1 tablespoon rice vinegar

1 teaspoon sesame oil

1 clove garlic, minced

Water to thin (if needed)

Instructions:

Fill a large shallow dish or pie plate with warm water.

Dip one rice paper wrapper into the water for about 10 to 15 seconds, until it becomes soft and pliable. Lay it flat on a clean, damp kitchen towel or cutting board.

Layer fillings one by one. Start with the mackerel, then sotanghon and the rest of the vegetables.

Fold the bottom of the wrapper over the filling, then fold in the sides, and roll up tightly to enclose the filling. Be careful not to tear the rice paper. Repeat with the remaining wrappers and filling.

In a hot pan, drizzle a little oil and fry the spring rolls until crispy.

In a small bowl, whisk together the hoisin sauce, peanut butter, soy sauce, rice vinegar, sesame oil, and minced garlic until smooth. Add water as needed to reach your desired consistency.

Arrange the spring rolls on a serving platter. Serve immediately with the dipping sauce on the side.

FILIPINO MACKEREL CURRY

Ingredients:

2 cans Mega Mackerel in Tomato Sauce

2 potatoes, peeled and cubed

2 carrots, peeled and sliced

1 red bell pepper, sliced

1 green bell pepper, sliced

2 cloves garlic, minced

1 onion, chopped

1 tablespoon curry powder

1 can (400ml) coconut milk

1 tablespoon cooking oil

Salt and pepper to taste

Fresh basil leaves for garnish

Procedure:

Open the cans of Mega Mackerel in Tomato Sauce and drain the sauce. Set the fish aside.

In a large pan or skillet, heat the cooking oil over medium heat. Add the minced garlic and chopped onion. Sauté until fragrant and translucent.

Add the cubed potatoes and sliced carrots to the pan. Stir and cook for about 5 minutes until the vegetables start to soften.

Sprinkle the curry powder over the vegetables. Stir well to coat the vegetables with the curry powder.

Pour the coconut milk into the pan. Stir to combine with the vegetables and curry powder.

Let the mixture simmer over medium-low heat for about 10 to 15 minutes, or until the potatoes and carrots are tender and cooked through.

Gently add the fish to the pan, being careful not to break them apart. Stir gently to incorporate the fish with the vegetables and curry sauce.

Add the sliced red and green bell peppers to the pan. Stir well to combine.

Season the curry with salt and pepper to taste. Adjust the seasoning according to your preference.

Let the curry simmer for another five minutes to allow the flavors to meld together and the sauce to thicken slightly.

Garnish the Filipino curry with fresh basil leaves for added flavor and freshness.

Serve with steamed rice.

Philippine money market group says banks cautious of trade risks

BW FILE PHOTO

(UPDATE) President Donald Trump’s ever-changing tariff onslaught is overshadowing the Philippines’ sound economic fundamentals and will likely keep banks selective in deploying funds, according to the head of the group representing fixed-income traders.  

“I haven’t seen this level of uncertainty,” Justin Robert Ladaban, president of the Money Market Association of the Philippines, said in an interview late Monday. “Unlike in the pandemic where responses were pretty much similar across jurisdictions, it’s not the case now.” 

Global markets saw intense volatility last week, with multiple markets posting record losses and gains as the Trump administration rolled out tariffs, pared them back for most countries and ended up hiking them dramatically for China. The flip-flops have been keeping investors on edge as they seek assets that can hold out against the unprecedented shocks to global trade. 

During the COVID-19 pandemic, it made more sense for banks to buy bonds than to lend to consumers, said Mr. Ladaban, who’s also the head of trading at Philippine Bank of Communications. 

“Now the play is really for the spreads rather than the trading gains,” he said. “That’s also why we’ve seen some bias towards lending,” he said, noting the preference to put funds into activities that will generate less volatile income. 

Citing the prospect of trade wars, Philippine central bank Governor Eli Remolona last month said uncertainty indexes are close to their levels at the start of the COVID-19 pandemic and exceed those during the global financial crisis.  

The 17% threatened tariff on Philippines’ exports to the US is lower than for Southeast Asian neighbors like Vietnam, Thailand and Indonesia. Still, a 90-day pause on the new tariffs and countries seeking talks with Washington mean things could still change. 

Mr. Ladaban said growth in personal incomes can help fuel demand for consumer loans, noting that the country’s “relatively subdued inflation” makes consumer lending attractive “given the spreads that we see.” 

The Bangko Sentral ng Pilipinas last week resumed easing, cutting its key interest rate by 25 basis points to 5.5% and signaling more to come, thanks to restrained price pressures.  

“Like the rest of the world, we’re looking at slower growth, but unlike the rest of the world, we’re looking at lower inflation,” Governor Remolona said at an April 10 briefing in Manila. 

Mr. Ladaban expects the central bank to continue easing.  

“We’ve been seeing a relatively weak dollar these last couple of weeks,” he said. “If that persists and inflation remains under control, I don’t see why the BSP would consider a halt in cutting its key rates.” 

The peso has gained nearly 2% against the dollar this year, while inflation has averaged 2.2% in the first three months. The central bank is reviewing if it can lower its inflation target range of 2%-4% for 2026.  

In its financial stability report, the BSP said high household borrowing, including unsecured consumer loans, raises concerns over bad debts and liquidity stress. As matters stand, banks have high capital buffers and ample liquidity, which would allow the financial system to absorb potential losses and support economic activity, it said. 

Meanwhile, the money market group head said the nation’s capital market is bound to develop as the economy continues to grow. 

Among the initiatives pushed by the group and other industry associations is the inclusion of non-bank financial institutions in the market for bond repurchase agreements. It’s also pushing for the group’s status as a self-regulatory organization for the Philippine repo market and for the extension of repos’ maximum tenor from the current 90 days, Mr. Ladaban said. — Bloomberg