US wants no G7 Russia antagonism as allies fear blockage

March 11, 2025 | 10:57 am

MONTREAL/JEDDAH – The U.S. opposes language that could harm its efforts to bring Russia and Ukraine to the negotiating table, Secretary of State Marco Rubio said on Monday, as Washington wrangled with G7 allies ahead of a meeting this week, further alarming them.

The foreign ministers of the Group of Seven major democracies – Britain, Canada, France, Germany, Italy, Japan and the United States – will meet in the river resort of La Malbaie, Quebec on March 12-14 for the first time since President Donald Trump returned to power in January.

While the G7 meetings have been consensual since Russia’s membership was suspended in March 2014 in response to its annexation of Crimea, underscoring their steadfast backing for Ukraine, Trump has upended Western unity by drawing the U.S. closer to Moscow while heaping criticism on Kyiv.

According to four G7 diplomats, Canada had initially hoped the seven would agree on an overall statement ranging from the war in Ukraine to the Middle East and China and a second declaration that would outline the G7’s efforts to curb Russia’s so-called shadow fleet.

Shadow fleet refers to vessels used by Russia to move oil, arms and grains around in violation of international sanctions imposed on it over the Ukraine war. The vessels are not regulated or insured by conventional Western providers.

Almost two pages out of eight in the last G7 statement in November were focused entirely on Ukraine, mostly taking aim at Russia.

However, the diplomats said agreement on the full communique this time was proving very difficult, with some fearing that a compromise may not be found.

Two diplomats said the United States was seeking to remove references to sanctions and Russia’s war in Ukraine, while demanding tougher language on China.

Speaking to reporters en route to Saudi Arabia for talks with Ukrainian officials, Rubio said there are always sticking points, adding that Washington cannot sign off on anything that could impede bringing Russia and Ukraine to the negotiating table.

“We feel like antagonistic language sometimes makes it harder to bring parties to the table, especially since we’re the only ones right now that seem to be in a position to make talks like that possible,” he said.

He said he was “certain” they would eventually arrive at a document that was meaningful and unifying without “undermining our ability to bring both sides to the table.”

Three diplomats said the United States also opposed a separate statement on Russia’s shadow fleet.

Washington has already broken with allies at the United Nations and the World Trade Organization at the end of February, refusing to condemn the Russian invasion of Ukraine.

“The best case scenario is two statements. Plan B is one statement. But the Americans are blocking the maritime statement, so it’s not easy. Even what the Canadians thought was going to be easy is not in fact easy,” said one G7 diplomat.

The diplomats cautioned that talks were still ongoing to try to find a compromise. – Reuters

Zelenskiy in Saudi Arabia as US voices hope for Ukraine peace talks

March 11, 2025 | 10:54 am

UKRAINE-CRISIS-ZELENSKIY-SINGAPORE — Ukrainian President Volodymyr Zelensky speaks at the Shangri-La Dialogue in Singapore, June 2, 2024. — REUTERS

JEDDAH – President Volodymyr Zelenskiy met with Saudi Crown Prince Mohammed bin Salman ahead of talks between Ukrainian and U.S. officials that Washington hopes will deliver substantial progress towards ending Russia’s war with Ukraine.

During the meeting in Jeddah, the crown prince underscored the kingdom’s support for international efforts to resolve Ukraine’s crisis and achieving peace, the Saudi state news agency SPA reported early on Tuesday.

The United States, once Ukraine’s main ally, has upended its policy on the conflict in its stated pursuit of a rapid end to the fighting, engaging directly with Moscow while stopping military assistance and intelligence sharing for Ukraine, which Russian troops invaded at scale in 2022.

Grappling with the new approach in the White House, Ukraine has pushed for “pragmatic” relations after a disastrous Oval Office encounter between Mr. Zelenskiy and U.S. President Donald Trump descended into acrimony last month.

Saudi Arabia has played a mediating role since Russia’s invasion, including brokering prisoner exchanges and hosting last month’s talks between Moscow and Washington.

Talks on Tuesday between U.S. and Ukrainian officials are the first official session since Mr. Zelenskiy’s abortive White House meeting, and Trump’s Middle East envoy Steve Witkoff said he had high hopes.

“I think that we’re going over there with an expectation that we’re going to make substantial progress,” he said in an interview with Fox News.

Asked if he thought Mr. Zelenskiy would return to the U.S. to sign a minerals deal this week, Mr. Witkoff said: “I am really hopeful. All the signs are very, very positive.”

Secretary of State Marco Rubio struck a more cautious note, saying there were still details to be worked out on the minerals deal. He added that the talks could be a success without an accord being signed and stressed the need to gauge Kyiv’s readiness to make concessions to reach peace.

Under huge pressure from Mr. Trump, Mr. Zelenskiy has been at pains to show that Kyiv is committed to ending the war soon, despite failing to win the U.S. security guarantees that Kyiv sees as vital for any peace deal.

Mr. Zelenskiy has said he will not attend Tuesday’s talks with U.S. officials, and the Ukrainian delegation will include his chief of staff, his foreign and defense ministers and a top military official in the presidential administration.

“On our side, we are fully committed to constructive dialogue, and we hope to discuss and agree on the necessary decisions and steps,” Mr. Zelenskiy said in a post on X.

“Realistic proposals are on the table. The key is to move quickly and effectively.”

U.S. officials said they were planning to use the meeting in part to determine whether Kyiv is willing to make material concessions to Russia to end the war.

One U.S. official said: “We want to see if the Ukrainians are interested not just in peace, but in a realistic peace.”

Mr. Trump said on Sunday he expected good results out of the upcoming talks, adding that Washington had “just about” ended a suspension of intelligence sharing with Kyiv.

Mr. Rubio said Ukraine was already receiving all U.S. defensive intelligence. “All the notion of the pause in aid broadly is something I hope we can resolve … I think what happens tomorrow will be key to that,” he said.

On the eve of the talks, Russia launched air strikes targeting Kyiv and other parts of Ukraine, with the Ukrainian air force saying the country was under a threat of a missile attack.

FRAMEWORK FOR AN AGREEMENT

Mr. Witkoff, who has been arranging the talks, has said the idea is to “get down a framework for a peace agreement and an initial ceasefire as well”.

Mr. Zelenskiy has called for a truce in the air and at sea, as well as a prisoner exchange, in what he says could be a test of Russia’s commitment to ending the war.

Moscow has rejected the idea of a temporary truce, which has also been proposed by Britain and France, saying it was a bid to buy time for Kyiv and prevent its military collapse.

Mr. Zelenskiy has said Kyiv is ready to sign the minerals deal with the U.S., which would create a joint fund from the sale of Ukrainian minerals. Washington says it is crucial to secure continued U.S. backing.

With U.S. support in question, Mr. Zelenskiy has been urging his European allies to ramp up their support as Kyiv’s battlefield position deteriorates and it faces mounting pressure to retreat from Russia’s Kursk region.

Russia holds around a fifth of Ukraine’s territory, including Crimea which it annexed in 2014, and its troops are also pressing in the eastern Donetsk region, having ramped up drone and missile strikes on cities and towns far from the front.

Russia has launched 1,200 aerial guided bombs, nearly 870 attack drones and more than 80 missiles at Ukraine in the past week alone, Mr. Zelenskiy has said. – Reuters

CoreWeave inks $11.9 billion contract with OpenAI ahead of IPO

March 11, 2025 | 10:50 am

NEW YORK – CoreWeave, an artificial intelligence startup backed by Nvidia, has signed a five-year contract worth $11.9 billion with OpenAI ahead of its hotly anticipated stock market launch.

As part of the pact, CoreWeave will provide AI infrastructure to OpenAI, CoreWeave said in a statement on Monday, confirming an earlier exclusive report from Reuters.

The deal will give OpenAI a stake in CoreWeave, which will issue shares worth $350 million to the ChatGPT maker through a private placement at the time of its initial public offering.

Livingston, New Jersey-based CoreWeave, which is one of the hottest AI startups in the U.S., will not receive any proceeds as part of the share issue to OpenAI.

“CoreWeave is an important addition to OpenAI’s infrastructure portfolio, complementing our commercial deals with Microsoft and Oracle, and our joint venture with SoftBank on Stargate,” said Sam Altman, CEO of OpenAI.

The deal provides a major boost to CoreWeave ahead of its blockbuster share sale, which is expected to headline the U.S. IPO lineup for 2025.

The discussions with OpenAI come at a time when investor interest in generative AI is sky-rocketing. The AI boom, which has powered chipmakers such as Nvidia and other big tech firms, has driven a surge in global demand for infrastructure such as data centers and high-powered servers.

A successful IPO for CoreWeave could pave the way for other AI startups that have recently considered tapping public markets. Data center operator Switch has been weighing an IPO at a valuation of about $40 billion, including debt, Reuters reported last year.

MARQUEE IPO

Founded in 2017, CoreWeave provides access to data centers and high-powered chips for AI workloads, mainly supplied by Nvidia. It competes against cloud providers such as Microsoft’s MSFT.O Azure and Amazon’s AMZN.O AWS.

CoreWeave, whose customers include big tech companies including Meta META.O, IBM IBM.N, and Microsoft MSFT.O, is expected to target a valuation of more than $35 billion in its stock market listing, Reuters reported in November.

In its IPO filing earlier in March, CoreWeave reported revenue of $1.92 billion in 2024, compared with $228.9 million a year earlier. Its net loss widened to $863.4 million during the same period from $593.7 million in 2023. Roughly two-thirds of its revenue came from Microsoft, which is the company’s biggest customer.

CoreWeave has raised more than $14.5 billion in debt and equity across 12 financing rounds, according to data compiled by Reuters. Last year, CoreWeave raised over $7 billion in one of the largest private debt financing rounds in history, led by asset managers Blackstone BX.N and Magnetar.

Morgan Stanley, JPMorgan Chase, and Goldman Sachs are the lead underwriters for CoreWeave’s upcoming stock market flotation. CoreWeave’s shares are expected to trade on the Nasdaq under the symbol CRWV. – Reuters

Philippine central bank says still on easing cycle, April cut on table

March 11, 2025 | 10:45 am

MANILA – The Philippine central bank is still on an easing cycle and could cut rates at its April meeting, Governor Eli M. Remolona Jr. said on Tuesday.

The Bangko Sentral ng Pilipinas (BSP) unexpectedly kept its key interest rate steady in February after three consecutive 25-basis-point cuts in previous reviews, citing uncertainties over global trade policies. — Reuters

FDI net inflows inch up 0.1% in 2024

March 11, 2025 | 12:34 am

PHL flag-peso-wc — Net inflows of foreign direct investments into the Philippines fell by 85.2% to $110 million in December from $743 million in the same month in 2023. — PHILIPPINE STAR/EDD GUMBAN

By Luisa Maria Jacinta C. Jocson, Reporter

NET INFLOWS of foreign direct investments (FDI) into the Philippines inched up by just 0.1% in 2024 but plunged in December to its lowest monthly tally in 11 years, amid uncertainty in global trade, data from the central bank showed.

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed FDI net inflows edged higher to $8.93 billion in 2024 from $8.925 billion in 2023, ending two straight years of declining inflows.

The 2024 FDI tally was also the highest in two years but below the BSP’s forecast of $9 billion.

Investments in equity and investment fund shares rose by 13.1% to $2.7 billion in 2024 from $2.39 billion in 2023.

Net foreign investments in equity capital climbed by 42.4% to $1.54 billion last year from $1.08 billion in 2023.

Placements increased by 4.3% to $2.17 billion, while withdrawals fell by 37.1% to $628 million.

BSP data showed these placements mainly came from Japan (38%), the United Kingdom (35%), the United States (10%), and Singapore (8%).

Investments were mostly channeled into manufacturing (68%), followed by real estate (12%), and information and communication (5%) industries.

Meanwhile, net investments in debt instruments stood at $6.23 billion, down by 4.7% from $6.53 billion in 2023.

Reinvestment of earnings likewise declined by 11.2% to $1.17 billion from $1.31 billion.

DECEMBER SLUMP
In December alone, FDI net inflows plunged by 85.2% to $110 million from $743 million in the same month in 2023.

Month on month, inflows likewise fell by 88% from $922 million.

December saw the lowest FDI net inflow in 11 years or since the $102.16 million recorded in December 2013.

“While nonresidents’ net equity capital investments rose, FDI declined due to increased debt repayments by resident corporations to their nonresident direct investors,” the BSP said.

The higher debt repayments brought net investments in debt instruments to an outflow of $19 million in December, a reversal of the $618-million inflow in the same month in 2023.

Reinvestment of earnings declined by 14.7% year on year to $80 million in December from $94 million a year ago.

On the other hand, net investments in equity capital other than the reinvestment of earnings jumped by 58% to $49 million in December from $31 million in the previous year.

This as equity capital placements dropped by 19.4% to $185 million, while withdrawals slid by 31.5% to $136 million.

By source, the bulk of equity capital placements in December came from Singapore (42%), followed by Japan (23%), and the United States (16%).

These were invested mainly in information and communication (40%), manufacturing (20%), financial and insurance (13%), construction (9%), and real estate industries (8%).

Meanwhile, investments in equity and investment fund shares went up by 3.3% to $129 million in December from $125 million.

“The sharp decline in net FDI inflows in December is concerning, as it suggests both short-term financial pressures on local firms and potential shifts in investor sentiment toward the economy,” Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said.

He said the higher debt repayments suggest resident firms are “prioritizing deleveraging over reinvesting capital, which may reflect tighter financial conditions or concerns over profit margins.”

“Policy uncertainty and global economic risks may have dampened investor sentiment, leading firms to delay or scale down expansion plans in the Philippines,” Mr. Rivera added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the slump in investment flows could be due to uncertainties from the protectionist policies by US President Donald J. Trump.

This may have “encouraged more investments and jobs in the US rather than outside the US that could reduce FDIs globally,” he added.

Prior to assuming office in January, Mr. Trump had announced his plans to impose tariffs on major trading partners, such as China, Canada and Mexico, as well as an across-the-board reciprocal tariff on all countries that tax US imports.

Mr. Ricafort also cited tensions between China and the Philippines as well as weather disturbances that could have disrupted investment activity.

“The drop in FDI could also reflect competitiveness challenges, such as high operating costs, infrastructure bottlenecks, and concerns about regulatory stability,” Mr. Rivera added.

For the coming months, Mr. Ricafort said investment flows could be supported by the implementation of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act.

“This could make foreign investors become more decisive in locating in the country amid enhanced incentives for foreign investors,” he added.

Further interest rate cuts by the US Federal Reserve and BSP could also lower financing costs and attract more FDIs in the country, Mr. Ricafort said.

Despite the surprise policy pause in February, the BSP has said it is still in easing mode.

BSP Governor Eli M. Remolona, Jr. has said there is a possibility of up to 50 basis points of rate cuts this year. The central bank kept the key rate steady at 5.75% last month, citing global trade uncertainties.

“Higher global interest rates make borrowing more expensive, discouraging new investments,” Mr. Rivera said.

Mr. Rivera noted that countries like Vietnam and Indonesia may have attracted more FDI “due to stronger incentives or more favorable business environments.”

“Investors may be waiting for clarity on key economic reforms, tax policies, and regulatory frameworks before committing capital,” he added.

On the other hand, Mr. Ricafort said the tariff war would continue to weigh on FDI inflows in the coming months.

“(These) all encourage foreign investors to locate in the US to avert higher import tariffs and create more jobs in the US as part of Trump’s America-first policy,” he added.

The central bank expects to end 2025 with a $10-billion net FDI inflow.

The BSP noted that its FDI data are distinct from the investment data of other government sources as it covers actual investment flows.

“In contrast, the approved foreign investments data published by the Philippine Statistics Authority are sourced from Investment Promotion Agencies. These represent investment commitments, which may not necessarily be fully realized in a given period.”

Thrift banks to request lower MLR after RRR cut

March 11, 2025 | 12:33 am

THRIFT BANKS will ask the Bangko Sentral ng Pilipinas (BSP) to lower the minimum liquidity ratio (MLR) for the industry to 16%, as the reserve requirement ratio (RRR) cut takes effect later this month.

“I’m sure they will be open to that. Especially now that we have a 0% [RRR] already. So, let’s see. We will continue to probably request from them (the BSP),” Chamber of Thrift Banks (CTB) President and CARD SME Bank Vice-Chairperson Mary Jane A. Perreras told reporters on the sidelines of the CTB General Membership Meeting on Friday.

Last year the BSP rejected the thrift banking industry’s call to reduce the MLR, saying there was no need. It noted the 20% MLR was “appropriate,” as it ensures that thrift banks “have adequate liquid assets to withstand potential stress events while continuing to meet their clients’ funding needs.”

“During the pandemic it was at 16%. Now they have brought it back to 20%. So hopefully they can bring it back even if little by little,” Ms. Perreras said.

In April 2020, the BSP lowered the MLR for stand-alone thrift banks, rural banks and cooperative banks to 16% from 20% to help these lenders meet clients’ demand for funds during the pandemic.

This regulatory relief measure expired at the end of 2022, bringing the MLR back to 20%.

Ms. Perreras said the BSP could reconsider its earlier stance due to the expected increase in loan volume after the RRR cut takes effect.

The RRR for thrift lenders will be reduced by 100 basis points to 0%, effective March 28. The RRR is the portion of reserves that banks must hold onto to ensure they can meet liabilities in case of sudden withdrawals. When a bank is required to hold a lower reserve ratio, it has more funds to lend to borrowers.

“That (RRR cut) will increase the volume of loans, hopefully. Because there will be more liquidity that will be in the market. And we’re still also hoping that after the RRR is reduced to zero, the MLR could be reduced next,” she said.

Ms. Perreras said a reduction in MLR would further boost lending.

“We’re hoping that maybe that would be next. Because that is much better for us, especially for banks to be able to lend more… I’m sure they have reasons why they are keeping it at 20%. But we hope that they would also reconsider our request,” she said.

THRIFT LOANS
Meanwhile, Ms. Perreras said loans disbursed by thrift banks could hit around P900 billion this year, driven by the RRR cut and increased lending to small businesses and the agriculture sector.

“I think this growth will continue this year. Especially that now, we have a zero-reserve requirement (ratio). So, that loan portfolio, we expect that to be growing because we have more liquidity to do more loans outside,” she said.

In 2024, thrift banks disbursed loans worth P770 billion, Ms. Perreras said in a speech on Friday. This was around 15% higher than the P667.63-billion loans in 2023.

She told reporters that the sector’s net income and assets could grow by 6-7% this year.

However, cybersecurity issues continue to pose a risk for the sector.

“I think most of the banks are experiencing this, but because of the numerous solutions providers that are going to be very helpful for all the banks, not only the big banks but the big and the small banks, I think we will try to really fight this off,” Ms. Perreras said.

The thrift banking industry’s total assets grew by 6% to P1.1 trillion in 2024 from P1.04 trillion in 2023.

“Total capital reached P174 billion up by 10.7% from P157 billion. Capital adequacy ratio (CAR) is a strong 17.88%, very much above the 10% minimum required CAR. Nonperforming loan ratio remained manageable at 6.66%,” Ms. Perreras added.

This year, the CTB is looking at increasing loans for small businesses, as well as agricultural firms, which are typically affected by natural calamities.

“We have a lot of disasters and usually the affected sector is agriculture. So, while we are still working on development and making this a bigger sector. We will also look at the other sectors like the small and medium enterprises,” she said. — Aaron Michael C. Sy

Pharma industry eyes 9% growth this year

March 11, 2025 | 12:32 am

Illustration photo shows various medicine pills in their original packaging in Brussels, Belgium, Aug. 9, 2019. — REUTERS/YVES HERMAN/ILLUSTRATION

By Justine Irish D. Tabile, Reporter

THE PHILIPPINE pharmaceutical industry is targeting at least 9% growth this year amid the implementation of the universal healthcare law, an industry group said.

“The growth is estimated at 9%. The increase is driven by requirements in the implementation of the universal healthcare law,” Philippine Pharmaceutical Manufacturers Association (PPMA) President Higinio P. Porte, Jr. told BusinessWorld.

In particular, he said that the industry is banking on the implementation of the universal healthcare law’s outpatient drug benefit program.

“The outpatient drug benefit will be rolled out this year, wherein outpatients visiting health centers or public hospitals once given prescriptions will be provided vouchers that they can redeem in public hospitals and accredited drugstores,” he added.

The PPMA currently has 75 members, of which 45 are manufacturers and traders of drug products. Other members include major suppliers of raw and packaging materials, medical machines, and services.

Last year, the local pharmaceutical market was estimated at P285 billion, representing a 5% growth from the P270-billion market value in 2023.

If the 9% projection is realized, it means the local pharmaceutical market will reach P310 billion in market value this year.

However, only 34% of the estimated total market value in 2024 are products manufactured locally, according to Mr. Porte.

Although there are improvements in the approval of certificates of product registration (CPR), he said the lengthy process remains a concern for the sector.

“Although the delays in CPR and licenses approval significantly improved, about half of applications are beyond Citizens’ charter,” he said. “These delays have a great impact on the launches of new products both locally manufactured and imported.”

Sought for comment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the reason must be because of the economies of scale in other countries.

“The global supply chain [for pharmaceutical products] is strong. India, which is a source for many countries, already has economies of scale,” he said in a Viber message.

“They offer the best global technologies at the lowest possible cost or price, benefiting developing countries,” he added.

However, he said that there is an opportunity to increase the local share of manufacturing amid changes in the global supply chain and worldwide distribution.

“Let’s see if Trump’s higher tariffs, reciprocal tariffs, and trade wars would adversely affect the global supply chains and worldwide marketing or distribution,” said Mr. Ricafort.

Last month, US President Donald J. Trump said that he will impose 25% or higher tariffs on pharmaceutical imports with plans to increase it over the course of a year, along with his plans to impose tariffs on vehicle and semiconductor chip imports, Reuters reported.

The US is the largest market for most Indian generic drugmakers, accounting for 31% or $8.7 billion of the industry’s overall exports last year.

Mr. Ricafort said that the Philippines can be an attractive market for global pharmaceutical giants since it has the 12^thlargest population in the world.

“There are still opportunities to produce or manufacture in the Philippines for the local and export market, but that would require more investments in research and development and other high-tech facilities,” he added.

Last year, President Ferdinand R. Marcos, Jr. proposed the idea of establishing pharmaceutical economic zones in the Philippines to serve as one-stop shops to make the drug application process more accessible and efficient.

“We are still at the developing stage of our pharma parks, of which we have already established one in Tarlac,” said Philippine Economic Zone Authority (PEZA) Director-General Tereso O. Panga.

“In addition, PEZA looks forward to the groundbreaking of ZEN Industrial, the first Active Pharmaceutical Ingredient manufacturing facility in the Philippines,” he added.

Mr. Panga said that the primary objective of the pharma zones is to enable the Philippines to have a stronger pharmaceutical manufacturing footprint and increase access to affordable medicines.

World Bank says PHL needs reforms in education, health

March 11, 2025 | 12:31 am

students-pupils — Students walk to school, March 3, 2025. — PHILIPPINE STAR/RYAN BALDEMOR

THE PHILIPPINES should focus on reforms that will improve learning and health outcomes, as well as boost private sector competitiveness to sustain economic growth, a World Bank official said on Monday.

“I see the Philippines has good opportunities. But of course, [it] will also need to invest in reform efforts and continue boosting with reforms and opening up its market,” World Bank Country Director for the Philippines, Malaysia, and Brunei Zafer Mustafaoğlu said on Money Talks with Cathy Yang on One News.

He said these reforms are needed for the Philippines to sustain growth amid global uncertainty.

He pointed to reforms that would improve health and learning outcomes, enhance competitiveness of the private sector, boost community resilience and address gaps in infrastructure.

The Philippines has seen low learning outcomes, especially after the strict lockdowns during the coronavirus disease 2019 pandemic.

“We see that at the age of 10… Almost 90% of them are having difficulty in comprehending what they read. This, of course, is an area that we are focusing very much on improving educational outcomes,” Mr. Mustafaoğlu said.

A World Bank report previously showed that around 91% of 10-year-olds in the Philippines cannot read and understand an age-appropriate text, which is known as “learning poverty.”

Mr. Mustafaoğlu also noted that a child born in the Philippines today will be able to achieve only around 52% of their productive potential by age 18 due to the lack of education and adequate health services.

The Philippines is seeking a $600-million loan from the World Bank to fund a project aimed at improving learning outcomes in public schools.

“We are focusing on improving regulatory business environments, its implementation, deepening financial markets that both provide access to finance but also stability, and also firm entry into the markets to create more product firms and help them grow,” Mr. Mustafaoğlu said.

He said the World Bank is also prioritizing funding projects that will support resilient communities amid climate risks, as well as projects that will address infrastructure gaps.

“We all know that the Philippines suffers from infrastructure gaps, both in terms of physical renewable energy and digital transformation,” Mr. Mustafaoğlu said.

Asked about the possible impact of the global trade war on the Philippines, he said the economy is still expected to be one of the top performers in the region.

“If you look at its growth performance over the past decade, it did very well and also it created jobs. It is a good opportunity for its future. It is a young population… We expect the Philippines to continue growing in the next years,” Mr. Mustafaoğlu said

“And in that sense, it is likely to achieve its upper middle-income status by 2026.”

The World Bank expects the Philippines to be the second-fastest growing economy in the Southeast Asian region until 2026.

The Philippines is expected to grow 6.1% this year, just behind Vietnam at 6.6% and ahead of Cambodia (5.5%), Indonesia (5.1%), Malaysia (4.5%), Laos (3.7%), Thailand (2.9%), and Myanmar (2%). — A.R.A. Inosante

Cebu Landmasters starts offer period for P5-B sustainability-linked bonds

March 11, 2025 | 12:08 am

DAVAO GLOBAL TOWNSHIP, the first township development of Cebu Landmasters in partnership with Davao’s Villa-Abrille clan under the joint venture YHEST Realty and Development Corp. — CEBULANDMASTERS.COM

PROPERTY DEVELOPER Cebu Landmasters, Inc. (CLI) began the offer period for its P5-billion sustainability-linked bond issuance on Monday as part of its fundraising efforts.

The offer period will run until Friday, March 14, with a target listing date of March 21 on the Philippine Dealing & Exchange Corp., CLI said in a regulatory filing.

The company said it received the permit to sell from the Securities and Exchange Commission on March 7.

CLI’s issuance consists of a base amount of up to P3 billion with an oversubscription option of up to P2 billion, comprising Series D three-year bonds at 6.6348% per annum and Series E five-year bonds at 6.9157% per annum.

This is the second tranche of the company’s P15-billion shelf-registered debt securities program.

The second tranche secured a PRS Aa plus credit rating with a stable outlook from the Philippine Rating Services Corp. in December last year.

Obligations with a PRS Aa rating are considered “high quality” and subject to very low credit risks, reflecting the company’s “capacity to meet financial commitments.” A stable outlook indicates that the rating is unlikely to change within the next 12 months.

The first tranche of the P15-billion shelf-registered debt securities program was listed in October 2022.

CLI previously said it would allocate P12 billion for the initial phases of its two maiden projects in Luzon, which include a horizontal development and a condominium project. The first Luzon project is expected to launch by 2026.

Since its establishment in 2003, CLI has launched nearly 130 projects across 17 cities.

Its portfolio includes residential developments, offices, hotels and resorts, co-living and co-working spaces, mixed-use projects, and large-scale townships.

On Monday, CLI shares closed unchanged at P2.67 apiece. — Revin Mikhael D. Ochave

Ayala Corp. gets JCR ‘A-’ rating, may improve loan prospects

March 11, 2025 | 12:07 am

AYALA CORP. said its “A-” foreign currency long-term issuer rating from the Japan Credit Rating Agency, Ltd. (JCR) may enhance its ability to secure yen-denominated loans.

The rating, which indicates a “relatively high level of creditworthiness,” advises that the conglomerate has a strong capacity to meet financial commitments, Ayala Corp. said in an e-mail statement on Monday.

The “A-” rating with a stable outlook may improve the conglomerate’s ability to tap credit and capital markets, including access to Samurai loans. It is in line with the Philippine sovereign rating.

“While high interest rates are anticipated to persist, cost of capital is expected to remain competitive. When we have widened access to capital, we are more able to build businesses that enable people to thrive,” Ayala Corp. Treasurer Estelito C. Biacora said.

“This is an affirmation of Ayala Corp.’s strong credit and further enhances funding sources amidst the current market volatilities,” he added.

JCR said in a report that the company’s creditworthiness was emphasized by its business foundation with stable cash flow as well as a relatively favorable financial balance to support the growth potential of its business portfolio.

Mizuho Bank was the advisor for the company’s JCR rating.

“Key points to be watched in the future are the impact of changes in factors such as interest rates, or trends of the real estate market or regulations on the ability to generate cash flow and its financial balance of the businesses in which it invests, changes in its business portfolio stemming from changes in its investment policy and trends of its consolidated financial balance,” JCR said.

“In particular, as Ayala Corp. plans to expand its renewable energy power generation capacity in the power business, JCR will closely monitor how this will impact its financial position,” it added.

Ayala Corp.’s core businesses are in the real estate, banking, telecommunications, and renewable energy sectors. It also has a growing presence in healthcare, mobility, and logistics as well as investments in industrial technologies, education, and other ventures.

On Monday, Ayala Corp. shares rose by 1.89% or P11 to P593 apiece. — Revin Mikhael D. Ochave

Gov’t upsizes T-bill award amid robust demand

March 11, 2025 | 12:06 am

THE GOVERNMENT hiked the volume of Treasury bills (T-bills) it awarded on Monday as rates were below secondary market levels on growing expectations that the Bangko Sentral ng Pilipinas (BSP) will resume its easing cycle next month following slower-than-expected February inflation.

The Bureau of the Treasury (BTr) raised P30.8 billion from the T-bills it auctioned off on Monday, higher than the P22-billion plan, as total bids reached P90.598 billion, more than four times as much as the amount on offer and higher than the P85.474 billion in tenders recorded on Feb. 24.

The strong demand prompted the government to double the accepted noncompetitive bids for the 91- and 182-day securities to P5.6 billion and to P6.4 billion for the 364-day T-bill, the Treasury said in a statement.

Broken down, the Treasury borrowed P9.8 billion via the 91-day T-bills, higher than the P7-billion plan, as tenders for the tenor reached P35.628 billion. The three-month paper was quoted at an average rate of 5.178%, declining by 10.5 basis points (bps) from the 5.283% seen at the previous auction, with the BTr only accepting bids with this yield.

The government also made a P9.8-billion award of the 182-day securities, above the programmed P7 billion, as bids stood at P30.05 billion. The average rate of the six-month T-bill was at 5.48%, 13 bps lower than the 5.61% fetched last week, with accepted rates ranging from 5.49% to 5.568%.

Lastly, the Treasury raised P11.2 billion via the 364-day debt papers, more than the P8 billion placed on the auction block, as demand for the tenor totaled P24.92 billion. The average rate of the one-year debt inched up by 0.3 bp to 5.773% from 5.77% previously, with bids accepted carrying yields of 5.755% to 5.779%.

At the secondary market before the auction, the 91-, 182-, and 364-day T-bills were quoted at 5.2702%, 5.5681%, and 5.7941%, respectively, based on PHP Bloomberg Valuation Service (BVAL) Reference Rates data provided by the Treasury.

The government upsized its T-bill award on Monday as average rates were all lower than prevailing secondary market yields amid robust demand, the Treasury said.

“The latest Treasury bill average auction yields again slightly corrected lower for the second straight week after slightly rising for three straight weeks after the latest inflation unexpectedly eased to 2.1%, a pleasant surprise near the lower end of the BSP’s inflation target of 2-4%,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

This could support a 25-bp cut in borrowing costs as early as next month, he said.

“Demand was strong due to renewed interest in positioning given the recent decline in inflation. Looking forward, there are chances of another rate cut in April,” a trader said in a phone interview.

Philippine headline inflation slowed to 2.1% in February from 2.9% in January, the government reported last week. This was the slowest monthly print in five months or since the 1.9% in September 2024.

This was also below the BSP’s 2.2%-3% forecast for the month and the 2.6% median estimate in a BusinessWorld poll of 18 analysts.

The Monetary Board will next meet to discuss policy on April 3.

Analysts said slower February inflation gives the BSP room to resume its rate-cut cycle at next month’s meeting following its surprise pause at last month’s review.

BSP Governor Eli M. Remolona, Jr. last month said the central bank is still in easing mode, signaling the possibility of up to 50 bps worth of cuts this year.

The Monetary Board has delivered 75 bps in reductions to borrowing costs since it began its easing cycle in August 2024, with the policy rate now at 5.75%.

The trader added that investors swamped the offer as they sought to lock in returns ahead of the upcoming cuts in banks’ reserve requirement ratios (RRR) by month-end, which would free up about P300 billion in liquidity.

Effective March 28, the RRR of universal and commercial banks and nonbank financial institutions with quasi-banking functions will be cut by 200 bps to 5% from 7%. Digital banks’ ratio will go down by 150 bps to 2.5%, while the ratio for thrift lenders will be lowered by 100 bps to 0%.

Rural and cooperative banks’ reserve ratio has been at 0% since October, which was the last time the BSP cut reserve requirements.

The RRR is the portion of reserves that banks must hold onto to ensure they can meet liabilities in case of sudden withdrawals. A lower ratio means banks have more liquidity, which they can use to fund their loans.

On Tuesday, the BTr will offer P30 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of seven years and six months.

The Treasury is looking to raise P147 billion from the domestic market this month, or P22 billion from T-bills and P125 billion from T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.54 trillion or 5.3% of gross domestic product this year. — A.M.C. Sy

Mober opens 3,000-sq.m. EV charging hub in Pasay

March 11, 2025 | 12:06 am

GREEN LOGISTICS SERVICES provider Mober Technology Pte., Inc. (Mober) said it aims to charge up to 200 electric vehicle (EV) trucks per day with the opening of its Pasay Central Charge hub.

“For this central hub, we have invested around P14 million,” Mober Chief Executive Officer Dennis O. Ng told reporters on the sidelines of the facility’s inauguration on Monday.

Located in Pasay City, the facility spans 3,000 square meters (sq.m.) and has a 56-port capacity to serve Mober’s mixed fleet of e-vans and e-trucks.

Equipped with 50 7-kilowatt (kW) direct current chargers and two 60-kilowatt-hour (kWh) fast-charging units, Central Charge enables Mober to streamline operations and minimize vehicle downtime.

“At Mober, we’ve been committed to finding solutions to infrastructure challenges since our transition to EVs in 2021. Central Charge demonstrates our vision to pave the way for a cleaner, more efficient future for our clients and solidify the Philippines’ place at the forefront of sustainable logistics in Southeast Asia,” Mr. Ng said.

Mober is exploring the installation of solar photovoltaic panels and a 500-kWh battery energy storage system at Central Charge to reduce its carbon footprint.

The opening of the new facility follows the launch of the company’s first charging hub on Zamora Street, Pasay City, in 2023. That hub spans 800 square meters and has 30 charging units.

Meanwhile, Mr. Ng said the company is looking to establish a network of charging points across southern Luzon by the end of this year.

Last year, Mober announced its partnership with BDO Unibank, Inc. to finance the acquisition of 60 new EV trucks to expand its commercial fleet.

The partnership with BDO follows the company’s successful securing of a $6-million blended investment from the South East Asia Clean Energy Facility II, managed by Singapore-based fund manager Clime Capital.

Mober aims to scale up its fleet to over 500 EVs by 2026.

Meanwhile, Senator Sherwin T. Gatchalian said it might be more appropriate to exempt EVs and hybrid EVs from the motor vehicle user’s charge (MVUC) until 2028 or 2030 rather than provide subsidies.

MVUC is a fee collected by the government to help fund the maintenance of national and provincial roads and mitigate vehicle-related air pollution.

“After this event, I realized that instead of giving subsidies, why not exempt EVs and hybrids from MVUC? Because we already exempted them from excise taxes. And it’s time-bound — it’s not going to be perpetual,” he told reporters in a separate interview.

Last year, the National Economic and Development Authority approved the extension of tax breaks for two- and three-wheeled battery EVs, plug-in hybrid EVs, and hybrid EVs until 2028.

Under the Comprehensive Roadmap for the Electric Vehicle Industry, the business-as-usual scenario targets a 10% EV fleet share by 2040, while the clean energy scenario sets a target of at least 50%.

“It’s quite challenging. So, we need to provide as many incentives as possible for people to adopt EVs,” Mr. Gatchalian said. — Sheldeen Joy Talavera

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