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Rate cuts to spur fundraising in 2nd half

PHILIPPINE STARMIGUEL DE GUZMAN

By Luisa Maria Jacinta C. Jocson, Reporter

FIRMS’ fundraising and lending activities are seen to surge in the second half of this year amid the expected easing by the Bangko Sentral ng Pilipinas (BSP).

“The BSP’s possible policy shift signals a positive step towards fostering capital formation within the Philippines. By lowering borrowing costs, the central bank is essentially making it cheaper for businesses to secure funding,” Rafael S. Algarra, Jr., East West Banking Corp. group head for financial markets and wealth management, said in an e-mail. 

First Metro Investment Corp. Head of Research Cristina S. Ulang said that expected rate cuts will “cheapen” credit, which is good for companies looking to borrow.

This will also “encourage expanded capex (capital expenditure) programs of companies (and) enable greater access to fundraising channels and all for the uplift of overall economic activities,” she said in a Viber message.

Markets are widely anticipating the central bank to begin its easing cycle next month. This as BSP Governor Eli M. Remolona, Jr. has repeatedly signaled that they are on track to cut rates on Aug. 15, the Monetary Board’s next policy review and only meeting in the third quarter.

Mr. Remolona has said that the BSP can cut rates by up to 50 basis points (bps) this year, split into 25-bp cuts in the third and fourth quarters. 

For Mr. Algarra, markets have already been “grappling with a prolonged period of high interest rates.”

“This restrictive monetary environment has understandably led businesses to postpone expansion and new projects due to the high cost of borrowing,” he said.

From May 2022 to October 2023, the Monetary Board has raised borrowing costs by a cumulative 450 bps.

This brought the key rate to an over 17-year high of 6.5%.

If the BSP cuts rates in August, this would be the first reduction since the 25-bp cut delivered in November 2020 amid the COVID-19 pandemic.

Mercantile Securities Corp. Head Trader Jeff Radley C. See said these latest signals from the central bank would lead to a higher possibility of fundraising by companies.

“Cutting rates will signal bullish sentiment for the property sector, especially real estate investment trusts (REITs),” Mr. See said in a Viber message.

For his part, D&L Industries, Inc. President and Chief Executive Officer Alvin D. Lao said the impact of lower rates would be felt in terms of lower interest expenses on existing loans.

“I believe that, for firms in general, almost everyone has been expecting rates to drop since last year and (have) been likely holding off taking out big loans in anticipation of lower rates. It is likely that borrowing activity may increase as rates are cut,” he said in an e-mail.

Damosa Land President Ricardo F. Lagdameo said that most firms will be able to ramp up capital spending amid lowered interest rates.

“I think for the most part, many developers have continued their capital spending activities despite elevated rates to take advantage of opportunities today. With rates beginning to come down soon, spending will likely increase,” he said in an e-mail.

This could also possibly bring down costs for consumers, Mr. Lagdameo said.

“Apart from us as developers being able to enjoy lower interest rates soon (hopefully), what will also provide more confidence is that interest rates for borrowers or end users of real estate products will also normalize. I anticipate that this will create more demand for homes,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that rate cuts would also boost stock market activity.

“Rate cuts would also help improve market conditions in terms of higher stock market prices that would eventually encourage more share sales in terms of initial public offerings (IPOs), secondary offerings, preferred shares, stock rights offerings, among others,” he said in a Viber message.

The Philippine Stock Exchange (PSE) is targeting six IPOs this year. So far this year, the local bourse has had three IPOs: OceanaGold (Philippines), Inc.; Citicore Renewable Energy Corp.; and NexGen Energy Corp.

On the other hand, Mr. Algarra said that the full impact of the rate cuts may not be felt immediately.

“While we anticipate an uptick in fundraising activities, we believe a more significant acceleration will likely materialize in the early months of next year. This is due to the time it typically takes for businesses to finalize investment plans and secure financing,” he said.

For the coming months, Mr. Algarra said it will be crucial to monitor key indicators such as loan disbursements, investment approvals, and business sentiment.

“These metrics will provide valuable insights into the effectiveness of the BSP’s policy shift and its ultimate impact on the Philippine economy.”

“Overall, the BSP’s decision to cut rates presents an opportunity to break free from the constraints of high borrowing costs and propel the Philippines towards a period of renewed economic growth,” he added.

Data-sharing deal to help BIR go after ‘big-time’ tax evaders

A woman files income tax returns at the Bureau of Internal Revenue (BIR) in Intramuros, Manila, April 15, 2024. — PHILIPPINE STAR/EDD GUMBAN

By Revin Mikhael D. Ochave, Reporter

THE BUREAU of Internal Revenue (BIR) vowed to run after big-time corporate tax evaders as the agency can now access documents filed with the Securities and Exchange Commission (SEC).

“The BIR will maximize our partnership with the SEC by running after big-time corporate tax evaders. This sharing of information between the agencies will be used to investigate large-scale tax fraud activities perpetrated by companies such as that of ghost receipts and corporate tax evasion,” BIR Commissioner Romeo D. Lumagui, Jr. said in a statement.

Under a data-sharing deal, the BIR will have access to the SEC’s Swift Corporate and Other Records Exchange protocol where it can check all the corporate documents of any SEC-registered taxpayer in real time.

The BIR can look into the documents, such as articles of incorporation and annual financial statements, that are crucial to corporate tax fraud investigation or audit.

For its part, the BIR will provide SEC with a tax identification number verification for the latter’s online digital services to enhance its monitoring of the capital market.

Analysts said the new data-sharing deal between the BIR and SEC will help boost state revenues as the former ramps up its efforts to go after tax evaders.

“By granting the BIR access to essential documents such as articles of incorporation and audited financial statements, this initiative aims to streamline tax assessments and combat tax evasion. Companies will face stricter compliance requirements, while the SEC’s digital platforms simplify document submission and authentication,” Globalinks Securities and Stocks, Inc. Trader Mark V. Santarina said in a Viber message.

“The ease of data access for regulatory bodies necessitates accurate filings to avoid penalties,” he added.

AP Securities, Inc. Senior Research Analyst Francis Ferdinand D. Subido said this will result in increased transparency in the corporate sector.

“Company financials will better reflect the impact of taxes paid to their assets, especially to their cash,” he told BusinessWorld in a Viber message.

“Before, since companies submit another copy of their financial statements to the tax collectors, there is a misalignment in the timing of taxes paid to authorities versus the income tax expense recorded during the financial reporting period. This is why we get deferred tax assets and liabilities,” he said.

COL Financial Group, Inc. Chief Equity Strategist April Lynn Lee-Tan said in a Viber message that the data-sharing agreement makes it easier for the BIR to identify which companies are not paying the correct taxes.

“The BIR would need to look at a company’s financials to know how much taxes need to be paid,” she added.

The government loses around P500 billion annually due to tax evasion, the BIR said last year.

“This (data-sharing deal) can boost government revenue and promote fairer competition within the Philippine economy, but both agencies need to address data security, standardization, and staff training to ensure its effectiveness,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

Mr. Subido said the data-sharing agreement will also support the government’s push to improve tax administration.

“Gaining access to the financial statements will allow regulators to better understand the accounting methods that companies use. They can better get a gauge of what the true taxable income amount should be,” he said.

“This might even attract more businesses to the Philippines, because as we know, the amount of red tape here is something that has been keeping businesses away,” he added.

Mr. Santarina said the data-sharing initiative will also increase confidence in the local capital market.

“The SEC’s collaboration with other agencies underscores the importance of adhering to regulatory standards, enhancing comprehensive business activity monitoring and potentially boosting investor confidence in the capital markets industry,” he said.

Ensuring the ease of making tax payments would boost compliance among taxpayers, said Benedicta Du-Baladad, founding partner and chief executive officer of Du-Baladad and Associates.

“When taxpayers feel that taxes are fair, clear, easy to comply with and consistent in its application, there is a natural attraction for taxpayers to voluntarily comply without the BIR going after them,” she said in a Viber message.

The passage of Republic Act No. 11976 or the Ease of Paying Taxes law would also help improve the digitalization and taxpayer services of the BIR. — with Beatriz Marie D. Cruz

PHL consumer demand seen to remain muted

A woman shops for shoes at a market in Marikina, July 17, 2024. — PHILIPPINE STAR/WALTER BOLLOZOS

DOMESTIC DEMAND in the Philippines and other emerging Asian economies is expected to remain muted amid a high interest rate environment, S&P Global Ratings said.

“Consumer demand is more subdued in the Philippines with elevated interest rates (with the policy rate at 6.5%) and weak consumer confidence,” S&P said in its Emerging Markets (EM) Monthly Highlights.

The Bangko Sentral ng Pilipinas (BSP) kept its key rate to an over 17-year high of 6.5% since October 2023 to tame inflation.

“Opposing forces are at work as consumer demand remains broadly stable in EM Asia. On the one hand, demand is dampened by tighter monetary policy and spillovers from weaker economic growth last year,” it said.

“On the other hand, resilient labor markets and recovering tourism are supporting consumption activity.”

In the first quarter, the Philippine gross domestic product (GDP) grew by a weaker-than-expected 5.7%.

Household spending, which accounts for about three-fourths of growth, grew by 4.6%. This was its slowest pace since the 4.8% decline in the first quarter of 2021.

“We observe a slowdown in long-term GDP growth across some EMs, mostly because of slower labor productivity and fixed investment,” S&P Global said.

“In an environment of high interest rates, EM Asian economies with higher domestic savings may be better positioned to finance investments and boost long-term growth prospects,” it said.

The Philippines is targeting 6-7% economic growth this year, 6.5-7.5% for 2025 and 6.5-8% for 2026 to 2028.

However, S&P Global said it sees stronger GDP growth in the region this year compared with 2023, although there are risks to this outlook.

“In several economies, policy-related risks have risen following elections that are generating uncertainty over reforms, fiscal trajectories, and institutional frameworks,” it said.

S&P Global expects Philippine GDP growth to average 5.8% this year, falling short of the government’s goal.

“Policy uncertainty could exacerbate existing risks. Policy uncertainty will be a key factor late in the year and into 2025 as US elections play out and new administrations in key EMs begin to execute their plans,” it added.

The US presidential election is scheduled for Nov. 5.

In the Philippines, the midterm elections will be held in May 2025 and will have Filipinos voting for senators and local officials such as congressmen, governors, and mayors, among others.

Meanwhile, the credit rater said it also expects the delay in US Federal Reserve’s easing cycle to also impact monetary loosening in the region.

“A later-than-anticipated start to the Fed’s interest rate cuts will contribute to slower monetary policy normalization in most major EMs, though our view on terminal benchmark interest rates remains unchanged,” it said.

BSP Governor Eli M. Remolona, Jr. has said that the central bank is on track to begin cutting rates by August this year.

The BSP could cut by up to 50 basis points (bps) for the full-year, he added, through 25-bp cuts in the third and fourth quarters.

S&P Global also noted easing food inflation in the region. “Food inflation has been moderating in the past 12 months, but at an uneven pace across EMs.”

In the Philippines, headline inflation slowed to 3.7% in June from 3.9% in May, marking the seventh straight month that inflation settled within the BSP’s 2-4% target band.

Though food inflation in June quickened to 6.5%, rice inflation eased to 22.5% from 23% a month earlier. Rice accounts for nearly half of overall inflation.

“Most economies in the region are highly dependent on food imports, particularly on wheat, rice and corn,” S&P Global said.

“Despite some moderation, prices for several key food commodities, such as wheat and rice, remain around 10-15% above pre-2022 levels. Inflationary pressures stemming from elevated food prices continue to complicate disinflation trajectories for food-importing EMs,” it added.

For the first half of the year, inflation averaged 3.5%, slightly above the central bank’s 3.3% full-year forecast. — Luisa Maria Jacinta C. Jocson

PCCI warns sudden, haphazard closure of POGOs may lead to ‘massive’ job losses

Some residents have displayed signs protesting the presence of Philippine Offshore Gaming Operators (POGO) in Ayala Alabang Village in Muntinlupa, July 13, 2024. — PHILIPPINE STAR/RYAN BALDEMOR

THE PHILIPPINE Chamber of Commerce and Industry (PCCI) warned that the sudden closure of Philippine Offshore Gaming Operators (POGOs) in the country could cause “massive” job losses and adversely impact the property and financial sectors.

“While PCCI supports the stoppage of POGO operations in the Philippines, it cautioned against a haphazard, indiscriminate and sudden closure of all POGOs in the country because of the possible massive loss of jobs and related displacement of many businesses and industries, from food services to administrative support and transport services,” the business group said in a statement.

The PCCI also expressed concern that the closure of POGOs, which have taken up office spaces in key business districts, will hurt the commercial property sector. It noted that many investors have developed office buildings in response to the demand from POGOs in recent years.

“Relatedly, PCCI is worried over the spillover effects of the POGO closures on the financial institutions that funded new office buildings to accommodate the POGOs and the collateral damages for ancillary industries such as real estate and communication services,” it added.

Data from Leechiu Property Consultants showed office space transactions for POGOs slid by an annual 15% to 75,000 square meters (sq.m.) in the first half of 2024. This is far from its peak in 2019, when POGO take-up reached 242,000 sq.m. in the first half of the year, and its full-year office take-up soared to 738,000 sq.m.

“POGOs, some of which were issued licenses by the Philippine Amusement and Gaming Corp. (PAGCOR), pose immense social threats as they were exploited as breeding grounds for crime, scams, and human rights violations,” said PCCI President Enunina V. Mangio in a statement.

Finance Secretary Ralph G. Recto has earlier sent a letter recommending a POGO ban to President Ferdinand R. Marcos, Jr.

Ms. Mangio said the business group supports a “tiered phaseout” of POGO operations in the country.

“First, we call for the immediate closure of all POGOs operating illegally and without operating licenses,” she said.

“Second, we call on PAGCOR and other government agencies involved in regulating the POGO business, including the Bureau of Internal Revenue and the Bureau of Immigration, to carefully review the mandates from licenses, work licenses, and tax obligations of the POGO operators.”

Ms. Mangio said the government should ensure there are alternative employment opportunities for the workers who will be displaced due to the closure of POGOs.

“We, hence, enjoin the National Government and PAGCOR to carefully manage the POGO phaseout or ban to avoid serious economic displacement,” she added.

On Wednesday, several business groups, led by the Makati Business Club and the Management Association of the Philippines, expressed support for the proposed ban on POGOs.

The business groups said the contribution of POGO investments was equivalent to 0.2% of gross domestic product in 2023, calling it minimal compared with the social costs attributed to the industry.

“The crimes related to POGO investments can hinder growth, affect investor perception, and potentially affect our bilateral and multilateral relations,” they said.

In a Senate hearing on Tuesday, the Department of Finance (DoF) said that it is willing to forego the P13 billion in taxes from POGOs which it expects to be offset by investments that will come in once crimes associated with the industry recede.

The DoF estimated that the reputational risk from POGOs costs the government P55.36 billion in forgone investments, while PAGCOR estimated the foregone revenues if POGOs are shut down to be at P20 billion a year.

The Senate is currently investigating crimes linked to POGOs, which are mostly Chinese gambling firms that operate online casinos and is set to discuss a bill that will ban the industry. — Justine Irish D. Tabile

TikTok sees K-Culture spend doubling to $143 billion by 2030

YUN_Q/FLICKR

GLOBAL spending on Korean cultural products is forecast to nearly double to $143 billion by 2030, according to new research released by TikTok and analytics company Kantar.

The soaring popularity of so-called K-content has been amplified by social platforms, where users have voiced their appreciation of Korean drama, pop music, cuisine, and cosmetics. TikTok, which initially rocketed in popularity with short clips of young people dancing to popular songs, has become a gathering place for K-pop fans online. In recent times, that’s expanded to include more of Korean culture and traditions.

The current market size of Hallyu — meaning Korean Wave, a catch-all term encompassing the country’s cultural exports — is estimated to be $76 billion, and viral content around K-culture should drive it up by capturing bigger audiences in key markets like the US and Southeast Asia, the report said. Overall spending could reach as high as $198 by decade’s end, if all the potential consumers who are intrigued start buying Korean consumer goods, services, and entertainment.

Compared to Japan, north Asia’s original heavyweight cultural exporter, South Korea’s output is still relatively small — but social media is helping to narrow the gap.

Content on ByteDance Ltd.’s TikTok is increasingly branching out to address topics like Korean food and K-drama. It’s driven engagement, memes and real-world sales of products. In one case, sales of Buldak noodles skyrocketed after rapper Cardi B reviewed them on video and amassed nearly 40 million views. That sent shares of the Korean noodle maker Samyang Foods Co. to a record high this year.

South Korea is best known for its exports of physical goods — from semiconductors to cars and appliances — and those still dominate in economic terms. Hallyu’s growing reach is having ripple effects and promises to augment the less quantifiable soft power of the country and its brands. It’s already nurtured a new generation of multimillionaires from creative arenas like K-pop and webtoons.

In South Korea, TikTok’s audience is dwarfed by those of YouTube and Instagram. For all the app’s influence in spreading awareness about K-culture internationally, local users are gravitating to other platforms. But in the US and Southeast Asia, the research found that about 80% of users have found Korean culture through TikTok.

“If you look at the success stories of global trends in K-content, they are often triggered by secondary content from Southeast Asian creators,” said Hyunho Son, general manager of global business solutions at TikTok Korea. “It shows that the Southeast Asian market is acting as a gateway and hub for global viral trends in K-content.”

The craving for Korean culture comes at a time when TikTok is expanding its e-commerce business through TikTok Shop in the US and across Southeast Asia. Korean products are one of the most promising segments for the social platform, as more than half of TikTok users have bought Korean food or cosmetic items directly on TikTok Shop, according to the company.

Current global spending on Korean music — including concert tickets and content — is estimated to grow to about $11.6 billion this year, while spending on Korean beauty products and food is also expected to grow to more than $20 billion each, according to the report.

Momentum is likely to continue next year, with seven of every 10 TikTok users in the United States and Southeast Asia indicating their spending on K-food and K-beauty will increase next year, the report said. — Bloomberg

SMC, ACEN units advance in Meralco RE supply bid

WHATWOLF-FREEPIK

THE UNITS of San Miguel Corp. (SMC) and ACEN Corp. will undergo post-qualification evaluation after Manila Electric Co. (Meralco) identified their bids as the most competitive for a 500-megawatt (MW) renewable energy (RE) supply contract.

San Roque Hydropower, Inc. (SRHI), Gigasol3, Inc., and Santa Cruz Solar Energy, Inc. (SCSEI) submitted their qualification documents, technical proposal, and bid price, Meralco said in a statement on Thursday.

SRHI offered the lowest rate of P7.10 per kilowatt-hour (kWh) for 340 MW of the total requirement. SRHI, formerly known as Strategic Power Development Corp., is a subsidiary of San Miguel Global Power Holdings Corp., the power arm of SMC.

Gigasol submitted a rate of P8.1819 per kWh for 139 MW of the requirement, while SCSEI covered the remaining 21 MW requirement at a rate of P8.1998 per kWh. Both Gigasol3 and SCSEI are subsidiaries of ACEN under the Ayala Group.

Meralco stated that all offers received were below the reserve price of P8.2380 per kWh set for the bidding.

The government requires distribution utilities to choose the cheapest electricity supply.

“The submissions underwent a very stringent pass/fail completeness assessment and pre-qualification evaluation,” the power distributor said.

The bids and awards committee will conduct a post-qualification evaluation and submit its recommendation and report to Meralco’s board of directors for approval to the issuance of notices of award, the company added.

“As a highly regulated entity, Meralco has conducted its business in full compliance with the rules and regulations issued by the ERC and DoE,” Meralco Bids and Awards Committee Chairman Lawrence S. Fernandez said.

The 10-year power supply agreement resulting from the competitive selection process will cover Meralco’s 350-MW mid-merit requirement starting February 2025 and will increase by 150 MW starting February 2026.

Meralco said it has already contracted 1,880 MW of renewable energy capacity from various suppliers — surpassing its initial target of 1,500 MW.

Renewable energy is expected to account for 22% of its supply portfolio by 2030.

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

TV5 brings Muhlach family to bakery-centered sitcom

STARRING the Muhlach showbiz family — namely Aga Muhlach, wife Charlene Gonzalez, and their children Atasha and Andres — as the Persival family that owns a bakery, TV5’s Da Pers Family aims to introduce their collective star power in the beloved sitcom format.

“Masaya ako na mapapanod ng bagong henerasyon ang sitcom na ginagawa namin. Dati, araw-araw, puro sitcoms ang pinapalabas at iyon ang bumubuhay sa industriya (I’m glad that the new generation can watch the kind of sitcoms we used to make. Before, sitcoms would be broadcast every day, and the industry used to survive on them),” Aga Muhlach, the show’s lead actor and producer, said at its press launch on July 15.

“It’s nice to bring it back, that chill and simple kind of laughter,” he added.

Da Pers Family follows the couple as they run their struggling bakery, The Bake Haus of You, with the help of their twin children. Conflict brews when a former friend — played by Roderick Paulate — tries to drive them out of business. Other members of the cast include Bayani Agbayani as a good friend and Ces Quesada as the family’s lively matriarch.

Ms. Gonzalez-Muhlach told the press that the four of them had only done commercials together in the past, and that this was their first big showbiz project.

“We sheltered Andres and Atasha from public life for as long as we could. We took this chance, the first and only time that we did this, together,” she said.

On the 22-year-old twins entering the show business, she added, “The decision came from them. They were curious about it and are comfortable in the world they are entering.” It is Andres’ first acting gig, while Atasha has been co-hosting the lunchtime variety show Eat Bulaga and starring in limited series on TV5 since 2023.

Da Pers Family also marks the first time that Aga Muhlach has reunited with sitcom That’s My Doc co-actors Mr. Paulate and Mr. Agbayani, director Danni Caparas, and head writer Rhandy Reyes.

As the producer, Mr. Muhlach asked them to be part of the show.

“Ngayon ko lang naranasan na si Aga mismo ang tumawag at nag-request na makasama ko siya sa isang project. Hindi puwedeng humindi nang ganoon (It’s my first time to have Aga himself call me and request for me to join him in a project. It’s impossible to say no to that),” said Mr. Paulate.

In keeping with the style of 1990s sitcoms, Da Pers Family revolves around the Persival household, the little neighborhood they live in, and a wacky cast of characters that all live there. Mr. Agbayani said that it was intentional to have a mix of veteran and new-generation actors populate this space.

“It was my first time to be a creative consultant on the show,” he told the press. His biggest contribution is the title, which he thought of after many rejections by Mr. Muhlach. “Noong sinabi ko iyong ‘Pers’ family, doon lang nag-click (When I suggested ‘Pers’ family, that’s when it clicked).”

The Muhlach twins said that it was fun to act in a sitcom which is like “its own mini village,” though for one twin the pressure to perform is greater.

“For a first-timer — first time acting, first time delivering lines — you did very well,” Atasha Mulach told her brother. She added that Da Pers Family was a “great opportunity that we were super excited to take.”

Meanwhile, the younger Mr. Mulach said he was grateful that his first time in front of the TV camera was with people he loved as well as more experienced people that he admired. “It was easy to work with them because I’m comfortable with them,” he said.

Also in the cast are Heart Ryan, Chad Kinis, Kedebon Colim, and Sam Coloso.

Da Pers Family premieres on July 21 at 7:15 p.m., with new episodes airing every Sunday, with reruns on Mondays on the Sari-Sari Channel at 7 p.m. — Brontë H. Lacsamana

SMIC lists $500-million debt notes on Singapore Exchange

SM Investments Corp. (SMIC) said it has successfully listed $500 million in debt notes on the Singapore Exchange Securities Trading Ltd.

This issuance is part of SMIC’s $3-billion multi-issuer euro medium-term notes (EMTN) program launched in May, the company said in a disclosure on Thursday.

The conglomerate reported a 3.2x oversubscription, with final demand reaching $1.6 billion, marking its largest offshore bond issuance since 2014.

The notes were issued by SMIC’s wholly owned subsidiary, SMIC SG Holdings Pte. Ltd., incorporated in Singapore, and were backed by a guarantee from SMIC.

“Our establishment of the pioneer EMTN program allows us to efficiently access funding with flexibility, especially in times of volatility,” SMIC Chairman Amando M. Tetangco, Jr. said.

“We believe that the positive reception of this maiden issuance is a testament to the investability of quality Philippine corporates,” he added.

The five-year notes were priced at a yield of 5.466%, which is 135 basis points (bps) above the United States Treasury benchmark. The notes carry a coupon rate of 5.375%. The final spread represents a tightening of 35 bps from the initial price guidance.

In terms of location, 87% of the notes were distributed to Asia, while the remaining 13% were distributed to Europe, the Middle East, and Africa.

Among investor types, 83% of the notes were distributed to fund managers and asset managers, 11% to banks and financial institutions, and 6% to private banks and others.

Meanwhile, SMIC said the net proceeds from the EMTN issuance will be used for general corporate purposes.

HSBC, J.P. Morgan, Standard Chartered Bank and UBS have been mandated as joint lead managers and joint bookrunners, alongside BDO Capital and Chinabank Capital as joint lead managers.

In a separate report, financial research company CreditSights said that SMIC’s brand and track record, as well as diversified operations, are some of the conglomerate’s credit strengths in relation to the new five-year bond issuance.

“We recommend investors to participate but not expect significant tightening in the secondary market,” CreditSights said in a report authored by Lakshmanan R, Jonathan Tan Jun Jie, and Nicole Chua.

“SMIC’s earnings are diversified across the retail, property, banking, and various portfolio investment segments. This buffers the company from material downturns in any sector. All of SMIC’s segments are also aligned with the Philippines’ long-term macroeconomic growth prospects aided by rapid urbanization and rising disposable incomes,” it added.

CreditSights also said that SMIC has “sound leverage metrics” and a “good dollar bond repayment track record.”

“SMIC has exhibited a steady improvement in its net leverage metrics over the past three to four years. It has stayed in the 2.9x-4.4x range that indicates prudent financial management by the company,” CreditSights said.

However, CreditSights warned that SMIC faces high business risks across its core businesses in the retail, property, and banking segments.

“SMIC’s main verticals in retail, property, and banking inherently carry high business risks that make them more vulnerable to growth slowdowns… Although still a small earnings contributor, SMIC has portfolio investments in sectors that are relatively more defensive, including geothermal energy, copper mining, and logistics,” it said.

CreditSights also cautioned that SMIC’s free cash flows have been weighed by heavy capital expenditure (capex) and dividends, as well as structural subordination since the conglomerate has “little revenue-generating operations of its own, and is dependent on dividend income.”

SMIC has earmarked up to P115 billion for its capex budget this year to support expansion plans.

For the first quarter, SMIC’s consolidated net income rose by 6% to P18.4 billion as consolidated revenues increased by 4% to P144 billion.

On Thursday, SMIC shares fell by 2.28% or P21, ending at P902 apiece. — Revin Mikhael D. Ochave

The eye of the blockbuster storm

By Brontë H. Lacsamana, Reporter

Movie Review
Twisters
Directed by Lee Isaac Chung

A MODERN-DAY rehashing of a beloved, campy 1996 disaster blockbuster — this is what people expect from Twisters. Surprisingly, Lee Isaac Chung’s follow-up to the original defies the nostalgia that permeates sequels today, with it being a stand-alone film with no direct narrative connection to the previous one.

Though Twister sets a low bar in terms of plot believability, Twisters fully embraces this and takes what made the first movie successful to up the ante — the spectacle, the overall drama. It delivers a thrilling story about people chasing tornadoes (for the science!) and facing down these destructive vortexes with a mix of glee and horror.

The film begins with storm chaser Kate Carter (played by the phenomenal actress Daisy Edgar-Jones), whose lifelong passion for weather has led her to test out a tornado suppression device of her own design along with a team of colleagues. Things don’t go as planned, with the loss of most of her team to a category EF5 tornado, which is the biggest one there is.

Years later, she has supposedly given up storm chasing for a weather prediction job when her former teammate and the only other survivor of the tragedy, Javi (played by Anthony Ramos), reenters her life. Now backed by a lot of corporate funding, he pulls her back in — to a world of intensifying storms that have never been seen before.

Her path collides with reckless social-media superstar Tyler Owens (played by today’s charming, in-demand leading man, Glen Powell) and his howling troupe of “tornado wranglers.” At first on competing teams, the pair find themselves growing closer as multiple storm systems converging over central Oklahoma threaten to blow away everything they hold dear.

The film’s star power is notable. Mr. Powell and Ms. Edgar-Jones have a palpable chemistry, the former flashing his signature movie smile that has put him on course toward stardom (Set It Up, Top Gun: Maverick, Anyone But You, Hit Man). Meanwhile, the latter capably takes the reins of the emotionally traumatized meteorologist that Helen Hunt played in the original film.

Ms. Edgar-Jones also believably plays the character “with an uncanny knack for predicting when and where a tornado is brewing” that Bill Paxton played in Twister. Again, none of the characters in the new film are related to the ones in Twister, but it keeps a lot of the same beats albeit switching the roles around somewhat. The only common name is Dorothy, the name of a machine developed by Ms. Hunt and Mr. Paxton’s characters in the first film in an effort to study storms.

As with many disaster or nature-related films today, there is often an expectation that global warming or climate change be mentioned. There is definitely a reason storms are much worse in the 21st century than before, but no one in Twisters surprisingly ever mentions it.

On the flip side, there are many scenes that pay tribute to tornado victims and acknowledge how they can be taken advantage of by big corporations after their losses, something the 1996 movie didn’t touch on. What the two movies do share is how cheesy the outright villainy of its selfish corporate antagonists can be, though the original does it in more fun and funny ways (“He’s in it for the money, not the science!”).

With that in mind, this new film just doesn’t embrace the level of silly and wonder that the old one does, but perhaps that is a testament to how seriously blockbusters take themselves these days. Perhaps, to a 1990s-born kid like this writer, Twister will always be more interesting, as it represents a bygone era of campy banter and wacky humor as cars speed down a two-lane road amid cornfields (note Philip Seymour-Hoffman in one of his great, small roles, among others in the lovable, ragtag storm-chasing crew).

The biggest thing Twisters has going for it is an improvement on visuals. The 1990s had its (admittedly endearing) mixture of budgeted practical effects with barely passable digital effects, but at least now the new movie showcases the updated potential of action blockbusters. In 30 years, will it feel like a quintessential 2020s movie the same way its original feels like a quintessential 1990s movie today? Only time will tell.

Watching Twisters on the big screen enraptures as Mr. Powell, with his cowboy ways (“If you feel it, chase it!”), drives fearlessly into the tornado, an experience sucking us in at least for a little while. Nature’s divine authority casts aside man’s urge to control and master the world as storms devastate the land, and the computerized form of it is demonic, surreal, terrifying.

It was fun in the first movie when the screen of an outdoor drive-in theater showing The Shining was ripped away and sucked into the storm — in the new film an old moviehouse showing Frankenstein suffers the same fate. It’s an on-the-nose way to continue the narrative of how the increasingly monstrous capabilities of digital cinema are gradually able to generate bigger and bigger spectacles that can reel us all in, in ways analog couldn’t. With phenomena like artificial intelligence and algorithmic content up ahead, perhaps Twisters is us taking a breather within the calm eye of the storm, waiting to see what comes next.

Hyundai Motor Philippines launches Santa Fe Hybrid and Tucson Hybrid at Alabang Town Center

Hyundai Motor Philippines, Inc. (HMPH) officially reveals the all-new Santa Fe HEV and new Tucson HEV — the first Hyundai Hybrid models to be introduced to the Philippine market. Aside from a product presentation by HMPH representatives, the event was also graced by Hyundai Brand Ambassador, Paulo Avelino.

From left: Daihee Park, Directing Coordinator for Marketing and Product Planning; Cecil Capacete, Managing Director; Paulo Avelino, HMPH Brand Ambassador; Dongwook Lee, HMPH President; Mark Parulan, General Manager for Marketing and Product Planning; and Victor Vela, General Manager for Sales

“Through the introduction of these two cars, Hyundai further diversifies its lineup — we now have a fleet of SUVs, MPVs, EVs, high-performance cars, and, finally, Hyundai Hybrid. Whichever stage of life you’re in, there is a Hyundai vehicle that suits your needs, solidifying our purpose to provide a Hyundai for every Filipino,” says HMPH Managing Director Cecil Capacete.

Mr. Vela and Mr. Parulan presenting the all-new Santa Fe Hybrid.

The all-new Santa Fe Hybrid is powered by a Smartstream 1.6 Turbocharged HEV engine that delivers 235ps and 367Nm of torque. Its Hybrid system comes with e-Dynamic Drive that allows electric-powered Handling, Traction, Evasive Handling Assist, and Dynamic Torque Vectoring Control. Through the Smart Regenerative Braking System, the level of energy that the vehicle can recover is automatically adjusted during deceleration based on driving conditions to provide fuel-efficient driving.

Moving into the cabin, the interior is fitted with first row relaxation comfort seats and second row captain seats with remote folding function, accessible through the 12.3” panoramic curved infotainment display. This is also where Hybrid system-related information such as Hybrid battery level, Hybrid Fuel Economy, and Electric Motor Usage can be viewed. Furthermore, dual wireless smartphone charging ports with built-in cooling fans, a UV-C sterilization tray, and a bi-directional storage console also give passengers peak convenience, space, and accessibility. Safety also comes standard in the form of Hyundai SmartSense, which includes a Forward Collision-Avoidance Assist, All-around Parking Distance Warnings, and Blind-Spot Collision-Avoidance Assist, a Surround View Monitor, among others.

The all-new Santa Fe HEV is available in select Hyundai dealerships with a retail price of PhP 3,330,000. It comes in 6 colors: Abyss Black, Creamy White, Magnetic Gray, Earthy Brass, Terracotta Orange, and Ocado Green.

Mr. Avelino and Mr. Park presenting the new Tucson Hybrid.

On the other hand, those looking into more compact options can opt for the new 2025 Tucson Hybrid. The iconic nameplate receives a refreshed look — from its radiator grille, front and rear bumpers, as well as new wheel design, further redefining its sporty spirit. Like the Santa Fe, the new Tucson Hybrid comes with e-Dynamic Driving, as well as Smart Regenerative Braking for optimal fuel-efficiency. Aside from the traditional driving modes like eco, smart, and sport, this car comes with “Baby mode,” which activates optimal acceleration that enhances comfort for the young ones on board.

Powered by a Smartstream 1.6 Turbocharged Hybrid engine, this new Tucson Hybrid is capable of a maximum output of 235ps and 367Nm of torque, offering exceptional power for a compact SUV. Furthermore, it has a column-mounted Shift by Wire lever allowing intuitive and rapid shifting operation while driving. Additionally, the new Tucson Hybrid is equipped with Hyundai SmartSense, providing top-notch safety features such as Blind Spot Collision-Avoidance Assist, Forward Collision-Avoidance Assist, Lane Keeping & Following Assist, Side Parking Distance Warning, Smart Cruise Control, and a Surround View Monitor.

As for its interior, the new Tucson Hybrid also sports an impressive 12.3” panoramic curved infotainment display with Wireless Apple CarPlay and Android Auto. Improved storage space and convenience can also be enjoyed through the vehicle’s Floating Type Console Box, Steering Column-mounted Shift-by-Wire Lever, and Seat Remote Folding System.

The new Tucson will retail in select Hyundai dealerships for PhP 2,290,000 in 7 colors: Pine Green, Phantom Black Pearl, White Cream, Shimmering Silver, Amazon Gray, Deep Sea, and Cashmere Bronze. Additionally, its gasoline- and diesel-powered trims are also now available. The new Tucson Diesel retailing for PhP 1,980,000, and the new Tucson Gas for PhP 1,680,000.

Both the Tucson Hybrid and Santa Fe Hybrid have HEV warranty coverage of 5 years or 200,000km, and a High Voltage Battery warranty for 8 years or 160,000km, whichever comes first. Reservations can be made at the following Hyundai dealerships: Alabang, Bacolod, Cebu South, Commonwealth, E. Rodriguez, Makati, Pampanga, and Pasig.

Catch these cars in full metal at Hyundai Mobility Experience Alabang Town Center from July 18 to 21. Visitors who drop by can enjoy free coffee from Nomad Café and take unique snapshots with family and friends at the Hyundai photobooth. Additionally, customers who make onsite reservations of any variant of the Hyundai Creta or Stargazer can enjoy an event exclusive discount worth Php 10,000.

To learn more, visit https://www.hyundai.com/ph/en/hyundai-story/hyundai-mobility-experience. Stay updated with Hyundai through @HyundaiMotorPhilippines on Facebook and Instagram.

 

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#TeamGalaxy unfolds a new era with the Galaxy Z Fold6 and Z Flip6

Here’s how Galaxy AI is helping empower their best selves

#TeamGalaxy is entering a new era and embarking on exciting ventures with their latest Samsung Galaxy Z phones. From new opportunities to discovering fresh talents, these top actors and actresses, content creators and entrepreneurs are taking it to the top with the new Galaxy Z Fold6 and Z Flip6.

First up — what’s new with the Galaxy Z series? Well, Samsung’s continued innovation for foldables has created the slimmest and lightest Galaxy Z series ever, optimized for portability. The perfectly symmetrical design with straight edge provides an aesthetically sleek finish while a new cover screen ratio on Galaxy Z Fold6 provides a more natural bar-type viewing experience.

Along with design refinements, the new Galaxy Z series is also engineered to provide even more durability, with a dual rail hinge structure further supported by a strengthened folding edge, better distributing the shock of external impacts. The latest Galaxy Z series is also equipped with enhanced Armor Aluminum and Corning® Gorilla® Glass Victus® 2, making this the most durable Galaxy Z series yet.

What’s even more exciting is that Samsung is opening the next chapter of Galaxy AI by leveraging its most versatile and flexible form factor, perfectly designed to enable a range of unique mobile AI experiences. Whether using Galaxy Z Fold’s large screen, Galaxy Z Flip’s FlexWindow or making the most of the iconic FlexMode, Galaxy Z Fold6 and Flip6 will provide more opportunities to maximize AI capabilities.

Find out how these  innovative devices, powered by the cutting-edge Galaxy AI, help them explore creativity, enhance productivity, stay connected with fans, and unfold endless possibilities.

Unfolding productivity and creativity with the Galaxy Z Fold6

The Galaxy Z Fold6, with its large screen, offers a range of AI-powered features and tools that significantly enhance productivity and offer exciting new ways to create.

Beauty queen and singer Catriona Gray is ready to inspire people in a new way as she unfolds her storyteller era with the help of the Notes Assist on the Galaxy Z Fold6. Notes Assist on Samsung Notes offers translation, summaries, and auto formatting for simple and easy meeting notes. Plus, a newly embedded transcript feature enables transcription, translation and summarizing of voice recordings directly in Notes!

Cat says, “I think inspiration hits up many different times, and having a device in your pocket that can take notes really effectively and beautifully, and make it really organized throughout the summary feature or being able to highlight and write in certain notes with the S Pen, it’s just nice to have that on-the-go.”

On a whirlwind of glitter and glam for embodying Filipino drag excellence, Marina Summers is unfolding her World Domination era. She shared how the all-new Sketch to Image feature, which allows you to create more sophisticated art pieces by generating image options when you simply sketch or draw on the photos in Gallery or Note screen, is like a digital fairy drag mother to her.

“I just sketch my ideas, and it immediately conjures up an image that perfectly captures my vision. It’s pure magic,” the drag icon muses.

Unfolding self-expression with the Galaxy Z Flip6

The Galaxy Z Flip6 is not just optimized for style and portability, but offers a range of new customization and creativity features.

As she discovers her new era on the stage, AC Bonifacio is unfolding her passion for acting with the new Galaxy Z Flip6 and the Instant Slo-Mo feature for her glam clips. “I love that I can make my own glambot shots. It’s so cool. You can easily just press it to make it slo-mo whenever you want it to be slo-mo and you don’t have to edit further anymore,” she gushes.

Meanwhile, musician, juan karlos, who is stepping into his Creative Director Era, really enjoys using the Galaxy Z Flip6’s AI Flex Zoom, a feature which automatically finds the best framing for your shot by detecting the subject and zooming in and out before making any necessary adjustments — all done hands-free.

He shares, “It’s all about convenience, right, that’s all about efficiency. You don’t have to go back to your phone every time you wanna zoom in or zoom out. Especially nowadays, there are a lot of emerging content creators, right, and a lot of people do things solo, without a team.”

Galaxy AI across the ecosystem is enabling  #TeamGalaxy — Catriona Gray, Janine Gutierrez, Marina Summers, Wil Dasovich, Richard Juan, Jaz Reyes, Miggy Cruz, Patricia Prieto, Jess Wilson, AC Bonifacio, juan karlos, Kendra Kramer, Angelina Cruz, Bella Racelis, Nicole Andersson, Lexi Mendiola, and Ry Velasco — to enter their new eras and excel in their creative and professional pursuits. Check out the  #TeamGalaxy film to see them in action with their Galaxy Z series devices.

Then unfold your new era just like these #TeamGalaxy stars and discover limitless possibilities with the new Galaxy Z Fold6 and Z Flip6! Check out the latest Galaxy devices at any Samsung Experience Stores, authorized Samsung Stores, Lazada, Shopee, TikTok Shop, Abenson.com and MXMemoXpress.com. Visit https://www.samsung.com/ph/ for more information.

 

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Unilever PHL plans to expand food business

UNILEVER.COM.PH

UNILEVER Philippines is planning to expand its food product portfolio to support the evolving needs of its customers in the Philippines, a company official said.

The company plans to bring some of its products, available in other markets, to the Philippines, Unilever Philippines Nutrition Business Unit Lead Marinel M. Villanueva said on the sidelines of a media briefing on Thursday. 

“Our portfolio in the Philippines under the Knorr brand is actually extensive… But there are plans to look at new food formats and products,” she said. 

“Maybe in the next two to three years, you’ll see some new items, especially other scratch cooking aids and complex cooking aids,” Ms. Villanueva said. 

The products that the company is targeting to bring to the Philippines include those in liquid format, such as cooking sauces, she noted.

“We are also looking at making it more convenient for consumers. So, a (product) that can provide almost a full meal, like a mini meal, but is prepared in a more convenient way for our consumers that are more on the go.”

Unilever’s food portfolio includes Lady’s Choice and Knorr products such as bouillon cubes, liquid seasoning, recipe mixes, sinigang mixes, and sandwich spreads.

“But of course our business, a big bulk of it, will still be in the bouillon cubes as well as sinigang mix,” Ms. Villanueva said.

She also said that the company’s plant in Cavite has enough capacity for the planned new products.

“We do have capacity and capability to do that locally, but we also have the benefit of looking at the total Knorr global portfolios, so we do have access to those and can bring them in.”

Unilever’s market share in the seasonings category is more than half, said Ms. Villanueva, with Knorr sinigang mixes accounting for 85% and Knorr bouillon cubes accounting for more than half.

Unilever and Knorr target reaching 15 million Filipinos by 2030 under their programs called Knorr Nutri-Sarap and Makulay ang Buhay, meant to fight undernutrition in the country. The latest record shows they have already reached 12.5 million Filipinos.

“As one of the biggest consumer goods companies in the world, with one of the largest nutrition portfolios, Unilever strives to create a meaningful impact on people and the planet,” Unilever said. — Justine Irish D. Tabile

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