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Expanding financial access for every Filipino

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Economic uncertainties have pushed more Filipinos to consider financial safety nets, yet achieving long-term security remains a challenge.

A 2024 industry report found that 43% of Filipinos are seeking passive income sources, 39% are prioritizing emergency savings, and 32% are focused on financial freedom after retirement. However, major hurdles remain, with rising healthcare costs at 82%, inflation at 81%, and concerns over economic slowdown and recession at 78% weighing heavily on financial decisions.

Despite the availability of banking services, many Filipinos still prefer keeping their savings in traditional piggy banks, bamboo containers, or old jars. A study published by PANTAO: An International Journal of the Humanities and Social Sciences noted that distrust in banks stems from fears of bankruptcy or inflation eroding their savings. However, keeping cash at home poses greater risks, including theft, damage, or misplacement.

The study emphasized that banks serve not only as safekeeping institutions but also as tools for emergency preparedness. Experts recommend maintaining at least three to six months’ worth of living expenses in a secure, accessible account to prevent unnecessary debt during financial emergencies. When emergencies arise, those without savings often turn to quick loans, credit cards, or informal borrowing, creating a cycle where a large portion of income goes toward debt repayment rather than wealth-building.

Risk management is another overlooked aspect of personal finance. Many Filipinos see insurance as an unnecessary expense rather than a safeguard against life’s uncertainties. Life insurance, for example, is often dismissed as a luxury for the wealthy, while non-life insurance is viewed as an added cost rather than protection for assets.

While the country’s insurance penetration improved by 0.06 percentage points in the fourth quarter of 2024 to 1.67%, it remains relatively low compared to the global average of 2.9% and 2.2% in emerging Asia.

According to a JP Morgan report, life insurance with cash value can be a valuable financial tool for asset diversification. Permanent life insurance policies, for instance, include savings components that can grow over time, offering additional financial security.

Investment as wealth-building tool

According to the Bangko Sentral ng Pilipinas (BSP), saving is essential for financial security as it provides readily available funds for emergencies and short-term needs. However, these accounts offer minimal returns and often fail to keep pace with inflation.

Investing, on the other hand, involves purchasing assets that can appreciate over time, with the potential to generate higher returns. The BSP stated that income is a person’s most powerful wealth-building tool. Without strategic investing, hard-earned money may not reach its full potential.

While investments carry risks, they also provide opportunities for financial growth, helping Filipinos move beyond mere survival toward true financial independence. Middle-income Filipinos are exploring investment opportunities to grow their wealth, including stocks, mutual funds, real estate, and digital assets.

Such investors are typically investing to prioritize specific life objectives such as homeownership, education funding, or retirement planning. For them, the goal is not just wealth accumulation but securing a future that can withstand economic uncertainties.

Beyond financial gains, focusing on long-term objectives means investors are less likely to make impulsive decisions driven by short-term market fluctuations. This method helps to break away from the traditional approach of a one-size-fits-all investment solution.

However, 75% of Filipinos still do not invest, according to the BSP Financial Inclusion Survey. Many hesitate to enter the investment space due to a lack of knowledge, fear of risk, or unfamiliarity with financial products. The central bank also reported that the lack of financial literacy discourages people from considering investments, as many view them as risky or exclusive to the wealthy.

Journey towards financial inclusion

The BSP said that many Filipinos remain outside the formal financial system, unable to maximize opportunities that could improve their financial standing.

While women in the Philippines have higher financial inclusion rates than men, large segments of the population still struggle to access financial services. Those most affected include low-income earners, senior citizens, migrant workers and their families, persons with disabilities, indigenous peoples, and forcibly displaced persons.

Micro, small, and medium enterprises (MSMEs), along with agriculture-based businesses, also remain largely underserved. These sectors contribute significantly to employment and economic activity yet receive only a small fraction of total bank loans.

Smallholder farmers, fisherfolk, and informal workers, in particular, face limited access to financing that constrain their ability to expand and improve their livelihoods.

The transition to digital transactions has also introduced new challenges, especially in rural areas where internet connectivity is inconsistent and financial literacy is lower. Many Filipinos remain hesitant to fully embrace digital banking due to concerns about affordability, security, and fraud risks.

In response, the central bank is intensifying efforts to educate Filipinos on key financial concepts through its Economic and Financial Learning Office. The Economic and Financial Learning Program regularly holds activities designed to improve public understanding of essential financial matters.

Recognizing the challenges MSMEs and the agriculture sector face in securing financing, the BSP is promoting alternative lending solutions through Agricultural Value Chain Financing model, which connects agribusiness players with banks to facilitate lending opportunities. Through Circular No. 908, the central bank encourages banks to explore value chain financing as a sustainable way to support the agriculture industry.

In addition, the BSP continues to promote the Credit Surety Fund, which provides collateral substitutes to MSMEs, enabling them to access bank loans. Under the Credit Surety Fund (CSF) Cooperative Act, the central bank works closely with cooperatives and the Cooperative Development Authority to strengthen CSFs in various communities.

Meanwhile, the Department of Finance (DoF) has called on the insurance industry to expand market penetration and position insurance as a mainstream financial instrument and basic necessity for Filipinos.

In a statement, Finance Secretary Ralph G. Recto emphasized that insurance is a powerful tool for poverty reduction and long-term financial security, more than just a safety net.

“Risk is a significant driver of poverty, and adequate insurance coverage is among the powerful tools for mitigating this challenge. Therefore, the life insurance industry [must] hold key positions in winning our battle against poverty,” said Mr. Recto.

The Finance secretary also urged industry players to embrace digital innovation, simplify policies, and develop customer-centric, cost-effective solutions. That way, insurance serves as a comprehensive financial product that integrates protection, savings, and investment benefits tailored to different life stages. — Mhicole A. Moral

San Miguel, Prime Infra, Hexa Philippines eye CBK hydro asset

CBKPOWER.COM

SAN MIGUEL Global Power Holdings Corp. (SMGP), Prime Infrastructure Capital, Inc. (Prime Infra), and Hexa Philippines Holdings, Inc. are seeking to participate in the rebidding of the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant (HEPP) complex in Laguna.

State-run Power Sector Assets and Liabilities Management (PSALM) Corp., which is tasked to lead the privatization of the asset, held a pre-proposal conference on Tuesday to present the overview of the project, the bidding process, and the project agreements for the sale of CBK facility.

“We aim to inform interested companies ahead of time of the documentary requirements to successfully participate in the bidding process for the CBK power plants. This conference is also an opportunity for parties to inquire on any lingering issue regarding the bidding for CBK,” PSALM Vice-President for Privatization and Asset Management Arnold C. Francisco was quoted as saying in a statement on Tuesday.

SMGP is the power generation arm of the San Miguel Group, while Prime Infra serves as the infrastructure arm of the Razon Group. Hexa Philippines, meanwhile, is the country’s renewable energy platform under global infrastructure manager I Squared Capital.

Other power companies in attendance, all of which had previously expressed interest, included Thunder Consortium — comprising Aboitiz Renewables, Inc., Electric Power Development Co., and Sumitomo Corp. — as well as Giga ACE 11, Inc. of Ayala-led ACEN Corp.; First Gen Prime Energy Corp. of Lopez-led First Gen Corp.; Marubeni Corp.; Semirara Mining and Power Corp.; and Korea Water Resources Corp.

Last month, PSALM announced that it would initiate a rebidding process “to optimize the assets to be privatized and provide maximum value to its stakeholders.”

PSALM President and Chief Executive Officer Dennis Edward A. Dela Serna earlier said that given the short term of the independent power producer administrator agreement, the state-run firm decided to proceed with a direct sale.

The 796.64-megawatt (MW) hydroelectric power plant complex is currently under a 25-year build-rehabilitate-operate-transfer between independent power producer CBK Power Co. Ltd. and National Power Corp., which will expire in 2026.

The complex is composed of the 39.37-MW Caliraya HEPP in Lumban, 22.91-MW Botocan HEPP in Majayjay, and 366-MW Kalayaan I and 368.36-MW Kalayaan II pump storage power plants in Laguna.

In an invitation to bid, PSALM said that the project is being privatized on an “as is, where is” basis. Proposal submission date is set for June 16.

Finance Secretary Ralph G. Recto said last year that CBK’s privatization would likely generate between P50 billion and P100 billion. — Sheldeen Joy Talavera

PSE increases PDS stake with SSS share purchase deal

PHILIPPINE STAR/EDD GUMBAN

STATE-LED pension fund Social Security System (SSS) has sold its 1.54% stake in Philippine Dealing System Holdings Corp. (PDS) to the Philippine Stock Exchange, Inc. (PSE), bringing the market operator closer to full control of the fixed-income trading platform.

PSE is acquiring 96,388 common shares from SSS, the market operator said in a regulatory filing on Tuesday.

The two entities signed a share purchase agreement for the transaction.

PDS operates Philippine Dealing & Exchange Corp., Philippine Depository & Trust Corp., and Philippine Securities Settlement Corp. 

“The acquisition is subject to the usual closing conditions,” PSE said.

As of Feb. 24, PSE holds a 78.33% stake in PDS, up from its initial 20.98% interest, as it moves to consolidate the local capital markets.

In December last year, PSE announced its acquisition of a 61.92% stake in PDS for P2.32 billion. The market operator is purchasing 3.87 million PDS shares at P600 per share.

“Our post-acquisition objectives will be focused on the seamless integration of both entities to fully realize the synergies, efficiencies, and risk management benefits,” PSE President and Chief Executive Officer Ramon S. Monzon previously said. 

“We will also continue to pursue and complete the initiatives that PDS has already started in the fixed-income and depository businesses to further expand investor participation and protection in our market,” he added. 

For 2024, PSE recorded a 57.5% increase in net income to P1.21 billion from P766.31 million in 2023, following its takeover of PDS.

“The three-year strategic plan we laid out last year included the acquisition of PDS, which should provide a significant boost to our market development initiatives and bottom line,” Mr. Monzon said. 

PSE shares rose 0.99% or P1.80 to P183.80 per share on Wednesday. — Revin Mikhael D. Ochave

Asia’s 50 Best honors Margarita Forés

BANGKOK’S GAGGAN was named the top restaurant in Asia for the 5th year in a row. — GAGGAN.COM

Gaggan is No. 1 again; Toyo retains spot in top 50 list

TWO FILIPINO RESTAURANTS and a famous late Filipina chef were honored at this year’s Asia’s 50 Best Restaurants list.

Toyo Eatery, helmed by Jordy Navarra (and his wife May), dropped from its No. 24 spot but keeps its place in the 50 list at No. 42. It is the only Filipino entry in the 50 Best list this year.

The restaurant won the Gin Mare Art of Hospitality Award 2025, making it the Best Restaurant in the Philippines for 2025. Gallery by Chele, helmed by chefs Chele Gonzalez and Carlos Villaflor stays on the 51-100 list at No. 72.

Finally, Asia’s 50 Best Restaurants list honored late chef Margarita Forés with its Icon Award for 2025 (sponsored by Woodford Reserve), the first time the award was given posthumously.

While the list of the top 51 to 100 best restaurants was announced earlier this month — thus Gallery by Chele’s place was already known — the ceremony and the awarding for the Top 50 took place on March 25 at the Grand Hyatt Seoul. William Drew, director of content for 50 Best, said, “We are here of course to recognize the best restaurants and the best chefs from across the Asian continent, and in the process, to continue to shine the spotlight on this region, its cuisines, and its cultures.”

MARGARITA FORÉS
Mr. Drew went back onstage to bestow the award upon the late Ms. Forés. “Margarita’s death is a tragic loss — most of all, for her family — but also for her many, many friends and colleagues across the world, including all those in the culinary community of which she was such a vibrant part.” Ms. Forés passed away earlier this year at the age of 65 in Hong Kong. Asia’s 50 Best had named her Asia’s Best Female Chef in 2016. (Related story: https://tinyurl.com/mpkwk7a5)

“Margarita was such an iconic figure throughout Asia, and across the globe. She was a true champion: a champion of her nation, of her country’s cuisine, of female chefs, of her family, of the power of food to cross borders and cultures. A champion of life, who lived her own life to the full,” said Mr. Drew.

The award was accepted by her son, restaurateur Amado Forés. In a speech, he said, “She truly cherished these gatherings: sharing meals, celebrating your successes, and being surrounded by those who shared her passion.”

“Some of my best memories are from traveling with her, visiting your wonderful restaurants, and delivering those jars of Philippine crab fat talangka and mango pastries she loved sharing with all of you,” he told the gathered crowd of restauranteurs and chefs. “I’ve come to realize that the true power of 50 Best lies in its ability to inspire, bridge cultures, and create lasting memories and friendships.

“My mom always said her life’s purpose was simple: to make the world more beautiful and delicious for others. I’m grateful to 50 Best and this community for giving her a larger platform to do that.”

BEST FOR 2025
As for Manila’s Best Restaurant this year, Toyo Eatery’s entry for the list reads: “The restaurant prioritizes Filipino produce and people, fostering long-term relationships with local farmers and artisans,” and mentions its Sustainable Restaurant Award in 2023, as well as Mr. Navarra’s background working at The Fat Duck (a former winner of the World’s Best Restaurant award) and Asia’s 50 Best regular Bo Innovation in Hong Kong. While the restaurant was founded in 2016, it quickly gained recognition in the list as One to Watch in 2018, before joining the list itself in 2019.

Meanwhile, Bangkok is on a roll in the world of fine dining as one of its most famous restaurants, Gaggan, has been crowned the No. 1 restaurant in the region for the fifth time, having first taken to top slot in 2015. Helmed by Gaggan Anand, its entry in the list says, “Music, colors and creativity combine on the menu, which is anchored in progressive Indian cuisine with a fine-dining twist, with French, Thai, and Japanese influences. From using emojis to represent each of the courses to pushing diners to eat with their hands or even lick the plate, Anand wants to disrupt and reinvent the fine-dining experience.”

Mr. Anand’s storied spot is known for its wildly innovative dining experience, which spans 22 courses and features an Indian-accented cuisine. The multisensory meal — Mr. Anand incorporates music and imagery — goes for 16,000 Thai baht (about $473) and features dishes like a reimagined yogurt and chutney snack.

Mr. Anand’s winning night didn’t stop at the No. 1 spot. His year-old dining room Gaggan at Louis Vuitton came in at No. 31.

The restaurant, in the luxury retailer’s Bangkok store, also marks Louis Vuitton’s expanding presence in the realm of top-ranked restaurants; it also operates the three-star Michelin dining room, Plenitude, at the Cheval Blanc hotel in Paris. In yet another win for LVMH, Gaggan at Louis Vuitton’s Dej Kewkacha scored the Best Pastry Chef title.

In his first interview after winning, Mr. Anand told Bloomberg what it meant to win. “I come from extreme poverty, where I didn’t know what I was eating tomorrow, and I am living a luxurious life,” said the chef, who was born in Kolkata, India. “I am the first chef in Southeast Asia to open a fine dining restaurant with Louis Vuitton in Bangkok — and not being French. These are landmarks.”

The No. 2 restaurant on the list was the Chairman in Hong Kong, which was No. 1 in 2021. Last year it came in fourth.

The highest climber on the list was Chef Tam’s Seasons in Macao, which shot up 40 spots, to No. 9, from 49. The restaurant is on a hot streak — it recently garnered a second Michelin star.

Last year’s No. 1 restaurant, Sézanne in Tokyo, dropped to fourth. The Japanese capital had the most entries in the top 50 with nine; Hong Kong had seven spots on the list. Singapore saw its fortunes drop — it fell from nine spots in the top 50 in 2024 to seven this year, and saw some notable dining rooms drop off the list, including Born.

For the second year in a row, the awards were announced in Seoul. The host city also saw its fortunes rise this year — Mingles, the highest-ranked Korean restaurant, broke into the top 10, coming in at No. 5. (Last year it was 13.) And the list’s top new entry was the city’s Eatanic Garden, at No. 25.

The ceremony took place on Tuesday night at the Grand Hyatt Seoul. More than 700 people attended the event in Seoul’s upscale Hannam district. The hotel was filled with guests in tuxedos and long dresses and 100 or so chefs wearing signature red scarves around their necks. The attendees snacked on Iberico ham and Hanwoo beef and drank Suntory whiskey ahead of the announcement.

More than 350 anonymous voters determine the list for the region. The Asia 50 Best guide, an offshoot of the World’s 50 Best Restaurant list, has been published since 2013 by the UK-based William Reed Ltd.

The 50 Best is in the midst of a slow-rolling expansion — unlike The Michelin Guide, which announces stars in cities almost weekly at this point. Later this year will come the North America list, covering the US, Canada, and parts of the Caribbean (Mexico, Cuba, and the Dominican Republic are considered to be the purview of the Latin American 50 Best list). Mr. Drew said North America had been in the works for several years. Expect more ranked lists in the future: “50 Best Hotels has the potential for regional growth,” he says.

On March 12, Asia’s 51-100 rankings were announced. Seoul had six spots in the second tier — tied for the most with Bangkok, Hong Kong, and Singapore. Farmlore in Bengaluru (No. 68) earned the American Express One to Watch Award; it’s set on the 37-acre farm that provides most of its ingredients. — Joseph L. Garcia with a report from Bloomberg

View the complete list of Asia’s 50 Best Restaurants at https://www.theworlds50best.com/asia/en/list/1-50.

TDF yields inch down amid BSP easing hints

BW FILE PHOTO

YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) term deposits dropped on Wednesday following signals of a potential rate cut next month.

The central bank’s term deposit facility (TDF) fetched bids amounting to P123.926 billion on Wednesday, below the P140 billion placed on the auction block but a tad higher than the P122.771 billion for the P200-billion offer a week ago. The BSP awarded only P113.504 billion in term deposits.

Broken down, tenders for the seven-day papers reached P49.504 billion, lower than the P70 billion auctioned off by the central bank and the P61.127 billion in bids for the P90-billion offer the previous week. The BSP accepted only P43.504 billion in tenders for the tenor.

Accepted yields were from 5.7% to 5.795%, wider than the 5.74% to 5.79% band seen a week ago. This caused the average rate of the one-week deposits to inch down by 0.54 basis point (bp) to 5.7614% from 5.7668% previously.

Meanwhile, bids for the 15-day term deposits amounted to P74.422 billion, higher than the P70-billion offering and the P61.644 billion in tenders for the P110 billion auctioned off on March 19. The central bank made a full P70-billion award of the two-week tenor.

Banks asked for yields ranging from 5.7% to 5.8%, also wider than the 5.748% to 5.79% margin seen a week ago. With this, the average rate for the two-week deposits dropped by 0.77 bp to 5.7646% from 5.7723% logged in the prior auction.

The BSP has not auctioned off 28-day term deposits for more than four years to give way to its weekly offerings of securities with the same tenor.

Both the TDF and BSP bills are used by the central bank to mop up excess liquidity in the financial system and to better guide market rates.

Term deposit yields went down after BSP Governor Eli M. Remolona, Jr. said they could resume their monetary easing cycle as early as next month, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Mr. Remolona said in an interview with Bloomberg Television on the sidelines of the HSBC Global Investment Summit in Hong Kong on Tuesday that there is a “good chance” that the Monetary Board will cut rates by 25 bps at their April 10 meeting, Bloomberg reported.

He reiterated that the BSP remains on an easing cycle and could bring down borrowing costs by as much as 75 bps this year depending on data.

The central bank has reduced benchmark interest rates by a cumulative 75 bps since it began its rate-cut cycle in August last year, with its policy rate currently at 5.75%.

The Monetary Board in February unexpectedly kept rates unchanged in a “prudent” move amid uncertainties stemming from the Trump administration’s policies.

TDF rates also dropped ahead of the latest round of reserve requirement ratio (RRR) cuts that will take effect on Friday, which is expected to infuse about P330 billion in liquidity into the financial system, Mr. Ricafort said.

On Friday, 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%.

The reserve ratio for digital banks 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’ RRR has been at zero since October, which was the last time the BSP cut reserve requirements. — Luisa Maria Jacinta C. Jocson

Asia’s 50 Best Restaurants 2025

GAGGAN.COM

Here are this year’s winners. Last year’s rankings are in parentheses; asterisks (**) indicate a new entry.

1. Gaggan, Bangkok (3)
2. The Chairman, Hong Kong (4)
3. Wing, Hong Kong (5)
4. Sézanne, Tokyo (1)
5. Mingles, Seoul (13)
6. Nusara, Bangkok (6)
7. Odette, Singapore (10)
8. La Cime, Osaka (9)
9. Chef Tam’s Seasons, Macao (49) — the highest climber
10. Onjium, Seoul (21)
11. Sühring, Bangkok (7)
12. Narisawa, Tokyo (14)
13. Potong, Bangkok (17)
14. Meet the Bund, Shanghai (50)
15. Fu He Hui, Shanghai (19)
16. Sorn, Bangkok (11)
17. Florilège, Tokyo (2)
18. Caprice, Hong Kong (32)
19. Masque, Mumbai (23)
20. Le Du, Bangkok (12)
21. Neighborhood, Hong Kong (16)
22. Den, Tokyo (8)
23. 7th Door, Seoul (18)
24. Mono, Hong Kong (27)
25. Eatanic Garden, Seoul** — the top new entry
26. Logy, Taipei (22)
27. Ling Long, Shanghai (36)
28. Les Amis, Singapore (38)
29. 102 House Shanghai (40)
30. Crony, Tokyo**
31. Gaggan at Louis Vuitton, Bangkok**
32. Estro, Hong Kong **
33. Sushi Saito, Tokyo (60)
34. Sazenka, Tokyo (39)
35. JL Studio, Taichung, Taiwan (33)
36. Goh, Fukuoka (45)
37. Labyrinth, Singapore (30)
38. Burnt Ends, Singapore (15)
39. Meta, Singapore (28)
40. Seroja, Singapore (31)
41. Ando, Hong Kong (37)
42. Toyo Eatery, Manila (24)
43. Maz, Tokyo**
44. Baan Tepa, Bangkok (42)
45. Myoujyaku, Tokyo**
46. Indian Accent, New Delhi (26)
47. Samrub Samrub Thai, Bangkok (29)
48. Euphoria, Singapore (20)
49. August, Jakarta (46)
50. Lamdre, Beijing**
Bloomberg

Shell Pilipinas posts P1.25-B income for 2024, up 5.9%

PHOTO FROM PILIPINAS SHELL

SHELL PILIPINAS CORP. (SPC) recorded a 5.9% increase in net income to P1.25 billion for 2024 from P1.18 billion in the previous year, attributed to operational efficiencies and reduced operating expenses.

Net sales declined by 3.8% to P243.57 billion from P253.32 billion, based on the listed oil company’s financial statement released on Wednesday.

Costs and expenses decreased by 4.3% to P237.51 billion from P248.28 billion in the previous year. 

“Our solid performance in FY2024 demonstrates our capability to consistently deliver value through strategic management and operational excellence,” SPC President and Chief Executive Officer Lorelie Quiambao-Osial said in a media release.

The company attributed its improved performance to operational efficiencies, including P900 million in operating expense savings — nearly half a billion higher than its target. 

“The savings primarily resulted from supply efficiencies, structural cost reductions across the organization, and interest avoidance. While overall volumes declined slightly by 3%, higher demand for premium products across key segments enabled SPC to grow its margins,” the company said. 

SPC’s non-fuel business grew by 13% year-on-year, driven by increased sales in lubricants, vehicle servicing, and convenience retail operations. 

Its commercial business also improved, supported by growth in the construction and road (C&R) sector, lubricants, and commercial fuels.

Commercial fuel volume rose by 3%, backed by stable demand in the mining, power, and manufacturing sectors, along with successful customer acquisitions in other industries. 

Lubricants volume increased by 10%, driven by higher premium penetration, new customer acquisitions, and account recoveries. 

SPC said C&R remained the market leader in Bitumen, “as customers shift towards Shell’s sustainable product, Shell Bitumen FreshAir, which reduces harmful emissions by 40%.”

“We remain dedicated to strengthening our cash position, driving revenue and earnings growth, and expanding our volume across key markets. Through innovative strategies and disciplined financial management, Shell Pilipinas will remain competitive and resilient in a dynamic and fast-paced market environment,” Ms. Quiambao-Osial said. — Sheldeen Joy Talavera

BPI looks to raise at least $300M from planned dollar bond offering

BANK OF THE PHILIPPINE ISLANDS

BANK of the Philippine Islands (BPI) is looking to raise at least $300 million from an offering of dollar-denominated bonds.

The bank has tapped BPI Capital Corp., as sole global coordinator, along with joint bookrunners BofA Securities, Inc., The Hongkong and Shanghai Banking Corp. Ltd., JPMorgan Chase & Co., and UBS AG to arrange a series of fixed income investor meetings starting Wednesday for a potential bond issuance, it said in a disclosure to the stock exchange.

“A US dollar-denominated benchmark-sized Regulation S offering of five-year fixed rate and/or floating rate and/or 10-year fixed rate senior notes may follow, subject to market conditions,” BPI said.

The bonds will be issued out of BPI’s $3-billion medium-term note program, it said.

“With regard to the size, we can only say it will be at least benchmark size (at least $300 million),” BPI Treasurer and Global Markets head Dino R. Gasmen said in a Viber message.

BPI tapped SyCip Salazar Hernandez & Gatmaitan as its legal adviser as to Philippine law, while the joint bookrunners’ counsel is Romulo Mabanta Buenaventura Sayoc & de los Angeles.

Meanwhile, Milbank (Hong Kong) LLP is the legal adviser of the joint bookrunners for English law.

S&P Global Ratings on Wednesday assigned a “BBB+” long-term issue rating to the proposed bond offer.

“We equalize the rating on the notes with the issuer credit rating on Bank of the Philippine Islands (BBB+/Stable/A-2). This reflects our expectation that these notes will always rank equally with other senior unsecured obligations of the Philippines-based bank. The notes will constitute the bank’s direct, unconditional, unsecured, and unsubordinated obligations,” S&P said in a statement.

BPI last issued dollar bonds in March 2024, which marked its return to the offshore market after five years. The bank raised $400 million from its offer of senior unsecured five-year notes, higher than the initial $300-million offer as tenders reached $1.3 billion.

The Regulation S bonds, which were issued out of BPI’s medium-term note program, were listed on the Singapore Exchange Securities Trading Ltd. on March 26, 2024. The notes were priced at 5.25%, with proceeds from the issue set to be used to refinance the bank’s maturing debt and for general corporate purposes.

BPI’s attributable net income rose by 20.04% to a record P62.05 billion last year from P51.69 billion in 2023.

The bank’s shares rose by P2.60 or 1.97% to close at P134.80 apiece on Wednesday. — Aaron Michael C. Sy

Strong data security a must for firms adopting open-source AI

STOCK PHOTO | Image by Gerd Altmann from Pixabay

PHILIPPINE COMPANIES looking to adopt open-source artificial intelligence (AI) solutions like DeepSeek must fortify their data handling policies and infrastructure, analysts said.

“DeepSeek AI’s emergence is expected to expand AI accessibility for Philippine businesses by offering cost-effective and localized capabilities, which could accelerate AI adoption across industries,” Matthew Hardman, chief technology officer for Asia-Pacific at Hitachi Vantara, said in an e-mail.

“As with any hosted AI service, its integration presents risks related to data security, governance, and regulatory compliance.”

DeepSeek is a Chinese AI startup company that mainly develops large language models and other solutions at lower costs, disrupting tech giants that have invested billions in AI.

Its recent rise has prompted data privacy and security concerns, with some countries already blocking access to the app, among other regulatory actions.

A 2024 study commissioned by the International Business Machines Corp. (IBM) said that about 61% of information technology (IT) decision-makers across the globe use open-source ecosystems to source their AI tools. Asia-Pacific countries like Indonesia (73%), South Korea (73%) also showed increased reliance on open-source AI.

“While we have seen that cutting-edge AI models can be developed with limited resources, we believe that businesses need to consider more than just benchmark performance when choosing which AI models will suit their unique needs,” Kitman Cheung, pre-sales engineering leader at IBM ASEAN, said in an e-mail.

“Integrating these models safely and ethically across the entire AI lifecycle is just as critical,” Mr. Cheung added.

When adopting open-source AI solutions, Philippine businesses should evaluate where and how their data are processed to ensure compliance with data privacy regulations and global standards, Hitachi Vantara’s Mr. Hardman said.

Using hosted AI services may compromise data security as these allow third parties to access information, but on-device AI will also require robust infrastructure and in-house expertise, he added.

“To navigate these challenges, companies must strengthen their cybersecurity frameworks, establish robust ethical AI practices, and adopt flexible policies to address regulatory uncertainties,” Mr. Hardman said.

“In this whole AI revolution, trust will continue to remain a crucial factor for organizations in the Philippines and beyond when choosing AI models,” IBM’s Mr. Cheung added. — Beatriz Marie D. Cruz

National Food Month kicks off in Quezon province

THE NEW LOGO for Filipino Food Month features figures of meat, fish, fruit, and vegetables. — ADONIS V. BUHAYAN/DA-AFID/DA.GOV.PH

FILIPINO FOOD MONTH, celebrated each April — due to Proclamation No. 469, which in 2018 designated the month for the celebration — will kick off on April 4 and will feature a variety of activities.

This year’s theme is “Sarap ng Pagkaing Pilipino, Yaman ng Ating Kasaysayan, Kultura, at Pagkatao” (which roughly translates to “The taste of Filipino food; the wealth of history, culture and self”), was announced at a press conference on March 21 at the Manila Prince Hotel. The new logo for Filipino Food Month was also unveiled, featuring figures of meat, fish, fruit, and vegetables. According to a statement by the Department of Agriculture (DA; one of the agencies in charge of the celebration) says that the new logo “embodies the rich agricultural and culinary heritage of Luzon, Visayas, and Mindanao by showcasing key agricultural products from each major island group. It is also inspired by the colors of the Philippine flag, symbolizing unity, pride, and resilience in preserving and promoting Filipino cuisine.”

Its partner agencies include the Department of Tourism, the National Commission on Culture and the Arts, and the non-government organization, the Philippine Culinary Heritage Movement (PCHM).

Kickoff ceremonies will commence on April 4 at the Quezon Provincial Capitol Grounds.

“This year, we’re going down south to Quezon because we also have major food hubs in Quezon,” said DA Assistant Secretary for Agribusiness, Marketing, and Consumer Affairs Genevieve Velicaria-Guevarra during the press conference. “Not many people know that most of our vegetables, especially here in Metro Manila — we think it’s coming from the north, no — most of them are coming from Quezon… that’s what we want to highlight.”

She talked about the tangible effects the festival has had on the food industry since debuting in 2019. “This is a form of market linkage, and right after we do this. We (look) for partners.”

“We look at it as a form of opening the market and telling them that you can get ingredients here, better, or more premium, ingredients that they can also promote. That’s one gauge for us. That’s also giving our farmers better income and better opportunities for them to be able to sell their produce,” said Ms. Velicaria-Guevarra.

“For our farmers to continue planting, we have to show them that (there is a) market.”

PCHM Founder and President Jose Antonio Miguel Melchor, meanwhile, said that one of the food month’s highlight events, the KAINCON Filipino Food Conference, continues to attract academic papers from here and abroad, saying that there were 60 submissions this year.

The month-long celebration will feature various activities including an official opening ceremony at the DA Central Office and Mines Elementary School in Quezon City on April 7; the Department of Trade and Industry’s National Food Fair: Philippine Cuisine and Ingredients Show at SM Megamall’s Megatrade Hall on April 9; the KAINCON Filipino Food Conference on April 12, and the AngSarap! Philippine Food Festival from April 25 to 27 at Ayala Malls. — Joseph L. Garcia

FDC earnings climb 36% to P12.1 billion

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GOTIANUN-LED Filinvest Development Corp. (FDC) recorded a 36% rise in attributable net income for 2024 to P12.1 billion from P8.9 billion in 2023, reflecting growth across all business segments.

Total revenue and other income rose by 22% to P113.4 billion in 2024 from P92.8 billion in 2023, FDC said in a statement to the stock exchange on Wednesday. 

Consolidated net income grew by 29% to P15.7 billion.

The banking and financial services segment accounted for 39% of FDC’s net income, followed by the power business at 29%, real estate and hospitality at 27%, and other businesses at 5%. 

“2024 was by far Filinvest’s strongest year. As we celebrate our 70th anniversary, this record performance anchors our growth plans and gives us confidence in our continued growth in the years ahead. It is a testament to our ability to adapt to changes over the decades and take advantage of opportunities when they arise,” FDC President and Chief Executive Officer Rhoda A. Huang said. 

The banking business, led by East West Banking Corp., posted a 25% increase in net income to a record-high P7.6 billion, driven by sustained consumer loan growth and strong deposit generation. 

Net interest income rose by 19% to P33.5 billion, while non-interest income expanded by 20% to P8.9 billion.

The real estate segment, comprised of Filinvest Land, Inc. and Filinvest Alabang, Inc., recorded a 3.2% increase in net income contribution to P3.8 billion.

Revenues from the residential segment climbed 9% to P17.6 billion due to a higher percentage of project completion in mid-rise condominiums and housing developments, as well as a growing number of accounts recognized as revenue. 

Mall and rental revenues improved by 11% to P8.5 billion, driven by higher occupancy rates and improved net effective rents.

The power subsidiary, FDC Utilities, Inc., posted a 26% increase in net income contribution to P4.3 billion as revenues grew 40% to P24.5 billion on higher volume and average selling prices. 

Filinvest Hospitality Corp. contributed P266 million in net income as revenue rose 26% to P4.3 billion, supported by stable domestic tourism and higher average room rates across its seven properties. 

The company operates approximately 1,800 rooms across seven hotels in seven cities and five regions under the Crimson, Quest, and Timberland Highlands brands.

“Armed with a strong foundation, we are now ready to embrace change and move forward on this pivotal growth path for the Filinvest group,” Ms. Huang said.

FDC shares rose 1.06% or five centavos to P4.75 per share on Wednesday. — Revin Mihael D. Ochave

UnionBank set to exercise call option on P6.8-billion Tier 2 bonds

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THE BANGKO Sentral ng Pilipinas (BSP) has cleared Union Bank of the Philippines, Inc.’s (UnionBank) plan to buy back P6.8 billion worth of bonds due 2030.

“Please be informed that the Bangko Sentral ng Pilipinas approved Union Bank of the Philippines’ request to exercise its voluntary redemption option on its P6.8-billion unsecured subordinated debt eligible as Tier 2 capital scheduled on May 24, 2025,” it said.

“All noteholders on record shall be notified of the said voluntary redemption option prior to the voluntary redemption date in accordance with the Manual of Regulations for Banks and the terms and conditions of the notes,” the bank added.

UnionBank in February 2020 raised P6.8 billion from the Tier 2 notes, higher than the initial P5-billion target. The issue was listed on the Philippine Dealing and Exchange Corp. that same month.

The Tier 2 notes have an interest rate of 5.25% per annum, payable in arrears quarterly, and were set to mature on May 24, 2030.

They have a tenor of 10 years and three months and are callable in 5.25 years from the issue date or starting May 24.

UnionBank’s attributable net income rose by 31.5% year on year to P11.93 billion in 2024 from P9.07 billion in 2023 on the back of its strong consumer business, improved margins, and higher revenues.

Its shares went up by 25 centavos or 0.76% to close at P33.25 each on Wednesday. — AMCS