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Inflation likely settled within 4.8%-5.6% in Aug.

Rising prices of rice may have partially driven higher inflation in August. — PHILIPPINE STAR/EDD GUMBAN

HEADLINE INFLATION likely settled within the range of 4.8% to 5.6% in August amid a sharp increase in rice and fuel prices, the Bangko Sentral ng Pilipinas (BSP) said on Thursday.

If realized, August inflation would exceed the central bank’s 2-4% target band for the 17th straight month.

It would also be faster than the 4.7% print in July, which would end six straight months of slowing inflation.

The Philippine Statistics Authority (PSA) will release August consumer price index (CPI) data on Sept. 5.

“Higher prices of rice and other agricultural commodities due to weather disturbances, sharp rise in fuel prices as well as increased transport costs owing to higher train fares and toll rates, and the peso depreciation are the primary sources of upward price pressures in August,” the BSP said.

In August alone, oil companies raised pump prices by P5.90 per liter for gasoline, P9.90 per liter for diesel and P10 per liter for kerosene.

Higher fares at the Light Rail Transit Lines 1 and 2 took effect on Aug. 2. The minimum boarding fee was increased from P11 to P13.29, while distance fare was hiked to P1.21 from P1 per kilometer.

The peso closed at P56.595 on Thursday, depreciating by 3% or P1.715 from the P54.88 finish on July 31. Year to date, the peso depreciated by 1.5% or P0.84 from its P55.755 close on Dec. 29.

“Meanwhile, lower electricity rates from major providers could contribute to downward price pressures for the month,” the central bank said.

Manila Electric Co. (Meralco) lowered rates by P0.29 per kilowatt-hour (kWh) to P10.90 per kWh in August from P11.19 per kWh in July.

Debalika Sarkar, an economist from ANZ Research, expects 4.7% inflation in August due to base effects. Headline inflation was at 6.3% in August 2022. 

However, a large increase in rice prices may add to food inflation last month, she said in an e-mail.

The average price of a kilogram of local well-milled rice ranged from P47-P56 as of Aug. 30, higher than the P41-P49 range as of Aug. 1

“A sharp rise in rice prices in the domestic market, following India’s ban on rice exports in late July, will be reflected in August inflation data. We are expecting a rebound in food prices following six consecutive months of deceleration,” Ms. Sarkar said.

In July, India banned the export of non-basmati white rice to control rising domestic prices. India accounts for more than 40% of world rice exports.   

Based on PSA data, food inflation further eased to 6.3% in July from 6.7% in June and 7.1% a year ago.

“Food prices in the Philippines are again on the radar with rising global rice prices and fears of agricultural production loss due to El Niño. Food makes up around 35% of the Philippines’ CPI basket, therefore a decoupling trend (food prices rising but headline falling) may not last once the base effects fade,” Ms. Sarkar said.

Meanwhile, Metrobank Research in a note cut its full-year inflation outlook to 5.6% from 5.8% previously. This matched the BSP’s average inflation forecast for 2023.

“Metrobank Research expects (the downward)  trend to persist in the succeeding months sans supply shocks. However, the bank also recognizes looming upside risks emerging from higher rice prices which may feed into the headline inflation by yearend and until the following year,” it said.

The BSP sees inflation returning to the 2-4% target band by the fourth quarter this year. It projects inflation to settle at 5.6% in 2023, before easing to 3.2% in 2024.   

“While price pressures have significantly tempered for 2023, we see these upside risks to be a major consideration for the BSP that may push currently stable inflation expectations higher,” Metrobank Research said.

The research firm said the BSP may keep interest rates steady at 6.25% for the rest of the year, before cutting by 100 basis points (bps) to 5.25% in 2024.

The Monetary Board raised borrowing costs by 425 bps from May 2022 to March 2023 to tame inflation.

“The continued slowdown in inflation which may return within the BSP’s target range towards yearend is anticipated to prompt rate cuts in the following year which will then push growth to rebound in 2024,” it said.

Metrobank Research also slashed its Philippine growth forecasts to 5.5% from 6% previously due to the second-quarter figures. This is below the government’s 6-7% target for the year.

The Philippine economy expanded by just 4.3% in the second quarter, bringing the first-half average to 5.3%. — Keisha B. Ta-asan

Net ‘hot money’ inflows surge to $962M in July

More foreign capital went into the country in July to yield a net inflow for a second straight month. — REUTERS/DADO RUVIC/ILLUSTRATION

FOREIGN PORTFOLIO investments registered a net inflow for the second straight month in July, the Bangko Sentral ng Pilipinas (BSP) said on Thursday.

Transactions on short-term foreign investments registered with the BSP through authorized agent banks posted a net inflow of $962 million in July, a turnaround from the $103.14-million outflow in the same month in 2022.

The net inflow in July was also significantly higher than the revised $280,000 net inflow in June.

These foreign investments are also known as “hot money” — called as such due to the ease by which these funds enter and exit an economy.

Based on BSP data, gross inflows hit $1.58 billion in July, 77.2% up from the $889.4 million in June. It was also more than double the $680.7 million in the same month last year.

The top five investor economies were the United Kingdom, the United States, Singapore, Luxembourg, and Germany, accounting for 85.7% of total foreign portfolio investment inflows.

About $996 million or 63.2% were invested in peso government securities, while about 36.8% went into Philippine Stock Exchange-listed securities of companies involved in banks, property, food, beverage and tobacco, holding firms, and transportation services.

On the other hand, gross outflows declined by 30.9% to $614.5 million in July from $889.1 million a month prior. Year on year, net outflows fell by 21.6% from $784 million. 

The BSP said the United States received $400 million or 65% of total outward remittances.

The surge in hot money inflows in July may be due to bullish investor sentiment in the country.

“Net inflows in July may be supported by increased interest in the country due to various reforms such as the passage of the Maharlika Investment Fund (MIF) and proposed green lanes for investments,” China Banking Corp. Chief Economist Domini S. Velasquez said in a Viber message.

In July, President Ferdinand R. Marcos, Jr. signed the law creating the MIF, which is the country’s first sovereign wealth fund.

Ms. Velasquez also said that easing inflation in the US drew more investments.

“This information likely encouraged investors to flock to emerging markets like the Philippines,” she added. 

For the first seven months of the year, BSP-registered foreign investments yielded a net inflow of $81.71 million, significantly lower than the $715-million net inflow in the same period last year.

“Moving forward though, we expected hot money to remain weak due to a very thin interest rate band with the Fed and live possibility of further interest rate hikes domestically and abroad,” Ms. Velasquez said.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said concerns over the pace of the Fed’s tightening may continue to impact the direction of hot mon y flows for the rest of the year.

The BSP expects hot money to yield a net inflow of $2.5 billion this year. — Keisha B. Ta-asan

Domestic liquidity grows by 5.9% in June — BSP data

Domestic liquidity jumped by 5.9% year on year to P16.4 trillion in June. — PHILIPPINE STAR/WALTER BOLLOZOS

GROWTH in money supply further eased in June as high borrowing costs weighed on credit demand.

Data from the Bangko Sentral ng Pilipinas (BSP) showed that domestic liquidity, as measured by M3, expanded by 5.9% to P16.4 trillion in June, slower than the 6.6% growth in May.

On a month-on-month seasonally adjusted basis, M3 increased by 0.2%.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the June domestic liquidity growth was among the slowest in nearly two years or since July 2021.

He attributed this to the “restrictive monetary policy measures” as the BSP sought to mop up excess liquidity from the financial markets to curb inflation and stabilize the peso.

The Monetary Board raised borrowing costs by 425 basis points (bps) from May 2022 to March 2023, bringing the key interest rate to a near 16-year high of 6.25%.

Based on BSP data, domestic claims jumped by an annual 10.1% in June, slightly slower than 11.4% in May.

Claims on the private sector rose by 7.9% in June, easing from the 9.4% growth a month ago. The growth was driven by continued expansion in bank lending to nonfinancial private corporations and households.

Meanwhile, net claims on the central government rose by 17.2% in June, a tad slower from 18.3% in May, on the sustained borrowings by the National Government.

Net foreign assets (NFA) in peso terms slid by 2.8% in June, reversing the 2.7% expansion in May.

“The BSP’s NFA position declined by 0.6% in June after increasing by 4.2% in the previous month. Meanwhile, the NFA of banks declined on account of higher bills payable,” the central bank said.

The BSP added that it will continue to ensure domestic liquidity conditions are consistent with price and financial stability.

“For the coming months, M3 growth could remain tempered as long as inflationary pressures remain and monetary policy remains restrictive to bring down inflation further to BSP’s targets,” Mr. Ricafort said. 

Headline inflation likely settled within the 4.8%-to-5.6% range in August, according to the BSP.  If realized, this would be higher than the 4.7% print in July. It would also mark the 17th straight month inflation breached the 2-4% target.

The BSP sees inflation returning to the 2-4% target range by the fourth quarter this year. It projects full-year inflation to reach 5.6% in 2023, before easing to 3.2% in 2024.

Earlier BSP data showed outstanding loans of big banks expanded by 7.8% to P10.99 trillion in June from P10.19 trillion a year ago. Bank lending growth in June was slower than 9.4% seen in May and 12.1% in June 2022. — K.B. Ta-asan

ICTSI secures $750-M loan for overseas expansion

RAZON-LED International Container Terminal Services, Inc. (ICTSI) has signed a $750-million loan agreement with Metropolitan Bank & Trust Co. (Metrobank), its biggest loan to date, the listed terminal operator said on Thursday. 

The six-year credit facility will fund the company’s planned expansion overseas, it added. Established in 1987, ICTSI operates 33 terminals in 20 countries across six continents.

“Our long-standing relationship with Metrobank enables us to carry out our objective of continuously making our terminals around the world more globally competitive, more efficient, and more accessible,” ICTSI Executive Vice-President Christian R. Gonzalez said in a statement.

Proceeds from the loan will also fund short-term obligations and strategic mergers and acquisitions (M&A), the company said. 

“At the same time, this relationship enables us to act more proactively on M&A opportunities of all sizes. Metrobank has been a tremendous partner for us in building our global portfolio and in expanding our position as one of the Philippines’ true global corporate players,” Mr. Gonzalez added.

ICTSI has set a goal of investing in new and existing terminals to accelerate the growth of its offshore and domestic operations. 

“ICTSI plays a vital role in various markets. Its efforts in building catalysts of growth worldwide make the Filipino standard, a goal for all. We are happy to be able to support ICTSI’s global initiatives and we are proud to play a role in its success,” Mary Mylene A. Caparas, institutional banking sector head of Metrobank, said.

For 2023, ICTSI has said that it is setting aside about $400 million for capital expenditure (capex) to expand and improve productivity in its terminals in Australia, Mexico, the Philippines, the Democratic Republic of Congo, and Nigeria.

In 2019, ICTSI said its subsidiary ICTSI Global Finance B.V. had secured a $300-million seven-year loan from Metrobank to fund its capex and refinance obligations.

At the local bourse on Thursday, shares in the company shed P5.60 or 2.63% to end at P207.20 apiece. — Ashley Erika O. Jose

ERC grants Meralco-PEDC move to end supply deal

PHILSTAR FILE PHOTO

THE energy regulator has granted the joint move by Manila Electric Co. (Meralco) and Panay Energy Development Corp. (PEDC) to terminate their power supply deal.

In a media release on Thursday, the Energy Regulatory Commission (ERC) said it had granted the joint motion for contract termination filed by the companies on June 23, 2022, citing PEDC’s inability to meet its contractual obligations because of the losses it incurred.

The regulator made the decision on March 8, 2023 and released it on Aug. 29, 2023 via a vote of 3-2, with ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta issuing a separate opinion and Commissioner Catherine P. Maceda issuing a dissenting opinion.

Meralco and PEDC cited the “change in circumstance” provisions in their power supply agreement (PSA) as the reason for the termination.

In granting the termination motion, the regulator said the majority of the commissioners found that there was a basis to terminate the PSA as mutually agreed by the parties.

It said Meralco and PEDC stipulated in their PSA that they had the option to terminate at the instance of a “change in circumstance,” as in this case.

The termination motion followed the parties’ joint motion for contract price adjustment filed on Jan. 20, 2022, citing the “change in circumstance” provisions in their PSA.

The companies argued that the significant increase in the global cost of coal or fuel prices for 2022 had led to PEDC suffering losses amounting to about P962.24 million as of September 2022.

The ERC said that upon verification of the documents submitted by the parties, it computed an actual loss of around P884.55 million as of that date.

In granting the price adjustment motion, the commission was unanimous in finding that the PSA allowed for price adjustments in case of an “extraordinary event” that “results in an increase of actual fuel costs from the fuel prices at the time of bid submission” under certain conditions.

The ERC said that in its evaluation, the majority of the commissioners ruled that such conditions specifically defined by the “change in circumstance” provisions found in the PSA were present in this instance.

In her separate opinion, Ms. Dimalanta said that by filing the termination motion before the commission decided on the price adjustment motion, the parties are deemed to have abandoned their request for price adjustment.

She added that while there is a substantive basis to allow the termination of the PSA, the parties should be penalized for failing to observe the procedural requirements in the PSA for the termination.

In her dissenting opinion, Ms. Maceda voted to deny the termination motion, price adjustment motion, and prayer for recovery of PEDC’s alleged fuel losses, “principally for failure of the parties to observe the conditions and processes required under the PSA that they executed.”

Board diversity can boost listed companies’ competitiveness — ICD

DIVERSITY in the boards of Philippine listed companies could help increase competitiveness and responsiveness against economic headwinds, a study by nonprofit organization Institute of Corporate Directors (ICD) said.

In a statement on Thursday, the ICD said its study showed that board diversity elicits varied perspectives for better decision-making, especially during challenges.

The institute’s 2022 study examined active publicly listed companies registered with the Securities and Exchange Commission from 2019 to 2021. The study sought to determine if there are relationships between board attributes and company performance in terms of return on equity (RoE).

The study’s findings were presented during a hybrid event at Discovery Primea in Makati on Aug. 15.

“As business trends and demands continuously evolve over time, newer board directors might have just as much expertise to offer as their longer-serving counterparts. Relatively fresh and dynamic beliefs and principles held by the newer ones can also help in improving return on equity RoE as the traditional ones long-held by the more senior,” ICD Board Diversity and Inclusion Committee Outgoing Chair Helen T. de Guzman said.

Another key finding of the ICD study was that companies with women directors outperformed companies purely held by male directors.

“At the end of the day, diversity just for diversity’s sake is not enough. Boards should also look into and prioritize inclusion,” ICD Vice-Chair and President Boots Geotina-Garcia said.

The ICD study showed that RoE can be influenced by the seniority in the age of board directors.

In terms of expertise, the study said companies with non-executive directors and directors who are experts in business management and finance performed better than their counterparts.   

“Based on statistical tests done, age and average RoE are significantly and directly related. This means that as average ages go up, R0E tends to go up too,” the ICD said.

Meanwhile, ICD Board Diversity and Inclusion Committee Incoming Chair Monette Iturralde-Hamlin said that more dimensions and metrics will be included in future versions of the study.

“In continuing the Philippine study, we will be looking at adding more dimensions as well as other metrics to measure company performance to better understand the correlation of diversity and inclusion on a business’ success,” Ms. Iturralde-Hamlin said. 

The ICD is a nonprofit organization consisting of corporate directors and other stakeholders engaged in corporate governance. The group offers corporate governance learning solutions for board members and senior executives. — Revin Mikhael D. Ochave

AC Motors targets to put up 12 BYD stores 

ACMOTORS.COM.PH

AYALA Corp.’s automotive unit AC Motors on Thursday announced that it is planning to increase the number of stores of Chinese electric vehicle (EV) company BYD in the country to 12 in the next 12 months.

“This comprehensive BYD dealership roadmap is proof of AC Motors’ commitment to green technologies and confidence in the global powerhouse that is BYD,” it said in a press release.

The company has recently inaugurated its 4,000-square-meter BYD store in Quezon City, the second BYD store in the Philippines. The first one in Makati was operated by Solar Transport and Automotive Resources Corp., the previous local distributor of BYD.

The recently opened store, which is in partnership with Solar Transport, is the largest local BYD store to date and the first one under the stewardship of AC Motors.

“The BYD Quezon Avenue flagship dealership is a testament to the strong partnership of AC Motors and Solar Transport, and our commitment to our valued customers to provide service that they can rely on,” said Mark Andrew Tieng, president and chief executive officer of Solar Transport.

James Ng, general manager of BYD Philippines and Singapore said the opening of the flagship store shows the importance the Chinese company attachés to the Philippine market.

“[It is] also an important step for BYD to deepen its localization in the Philippines, as BYD joins hands with its partners to practice the goal of low-carbon and green life with practical actions. This is a brand-new starting point,” he said.

Earlier this month, AC Motors was appointed by BYD as its official distributor in the Philippines through its subsidiary, Mobility Access Philippines Ventures, Inc. (MAPVI).

“BYD’s presence in the country was already formidable,” said MAPVI President Antonio Zara III. “Thus, we look forward to scaling even bigger heights and bringing the brand closer to even more Filipinos. Building your dreams has never been more attainable, and exciting.” — Justine Irish D. Tabile

AboitizPower eyes fully electric fleet for power utilities by 2040

ABOITIZ Power Corp. (AboitizPower) on Thursday rolled out its corporate electric vehicle (EV) fleet transformation program as it aims to achieve 100% electrification for the fleet of its units by 2040.

“We aim to achieve 40% electrification for four-wheeled vehicles and motorbikes by 2030 and finally transform and electrify 100% of the AboitizPower DU (distribution utility) fleet by 2040,” said Anton Mari G. Perdices, the company’s distribution utilities chief operating officer, in a media release.

According to the company, the EVs were manufactured by Chinese automaker Build Your Dreams and will be deployed in its distribution utilities Visayan Electric Co., Inc., Davao Light and Power Co., Inc., and Cotabato Light and Power Co.

“Electrifying our fleet will help us further reduce carbon emissions, lower operating costs, and contribute to cleaner air in the cities where we operate. This way, we are also helping empower the evolution of the cities we serve,” Mr. Perdices said.

The program is in support of Republic Act No. 11697 or the Electric Vehicle Industry Development Act, which requires industrial and commercial companies to have at least 5% of their fleets comprise EVs.

“Globally, (the mobility sector) is a major contributor to air pollution and greenhouse gas emissions,” AboitizPower President and Chief Executive Officer Emmanuel V. Rubio said, noting it accounts for 31.3% of total final energy consumption.

“With an ever-growing demand for powered mobility, we recognize that deeper electrification of mobility is a key enabler in achieving a cleaner and more sustainable world energy system. After all, a broad range of mobility applications can be powered with electricity from cleaner or zero-emission sources,” he added.

The EV fleet transformation program is in line with the company’s growth strategy of adding 3,700 megawatts (MW) of renewable energy (RE) such as solar, wind, and geothermal, it said. This is part of its generation portfolio in the next 10 years.

Earlier this month, AboitizPower announced that its subsidiary Aboitiz Renewables, Inc. would build two solar power projects in Negros Occidental and Zambales with a capacity of 173 MW and 211 MW, respectively.

The 173-MW solar power project is targeted for commercial operations by 2024, while the 211-MW project is targeted for 2025.

The company has RE projects with a combined capacity of about 1,000 MW that are in the pipeline through the development of wind, solar, and geothermal plants.

At the stock exchange on Thursday, shares in AboitizPower went up by 15 centavos or 0.43% to P35.35 apiece. — Sheldeen Joy Talavera

A diverse mix of celebrities flexes their comedy muscles

COMEDY icons, dramatic actors, and social media stars come together in Comedy Island Philippines, a series which premieres on Aug. 31 on Prime Video. The series is a hybrid of scripted scenes and unscripted fun that allow the contestants to show their improvisational comedy chops.

Comedy Island Philippines presents a story where the protagonists find themselves stuck on a magic island with the world possibly ending, but it also pits the cast members against each other in unscripted scenarios to determine a winner.

The cast — actors Carlo Aquino, Rufa Mae Quinto, Andrea Brillantes, Jerald Napoles, and Cai Cortez, internet stars Awra Briguela and Justine Luzares, and Drew Arellano — are supposedly washed up on the shore of the mysterious Tawa-Tawa Island. For the fictional “Centennial Games,” the castaways must compete in various games and improvise to survive and escape the island.

Though Ms. Quinto, Mr. Napoles, and Ms. Cortez have previously shown off their comedy skills on film and television, it will be a first for many of the unexpected wild cards.

“Noong inalok ’to sa ’kin, kinabahan ako. Kaya tinanggap ko (When I was offered this job, I got nervous. That’s why I accepted it),” said Mr. Aquino at a press conference at the Teatrino in Greenhills on Aug. 30.

Known for more dramatic, heartthrob-type roles, he approached the challenge of Comedy Island as exciting new ground that he could explore along with the other cast members, he added.

For Ms. Brillantes, a young, sweet, and quirky actress with a wide following on social media, the show is also her chance to show that she has skills that many Filipinos have not yet seen.

“Feeling ko kasi may potential talaga ako maging comedian (I really feel like I have the potential to be a comedian)!” she said at a press conference.

In a self-deprecating manner, she added that even if others may be better at making people laugh, she balanced the cast by providing all of the “cuteness.”

Quark Henares, Prime Video’s head of original content for the Philippines, said that the goal was to have a diverse cast and put them in a place where they can unexpectedly let their talents shine.

“Awra Briguela and Justine Luzares, for example, are comedic internet personalities who haven’t really seen improv comedy. It’s a different, exciting environment for them,” he said.

Even for the host (known as “Master of Celebrities” in the show) Drew Arellano was challenged since he had only hosted shows as himself and not as some flamboyant, improvising character.

“There’s something that would kind of attract every sort of comedy or entertainment fan. We put it all together and let them play,” said Mr. Henares.

REPRESENTING THE PHILIPPINES
The six-part series, produced by Amazon Studios in collaboration with BASE Entertainment Asia, is one of three versions in a franchise, along with Comedy Island Indonesia and Comedy Island Thailand.

All three were filmed on the same island in Phuket, Thailand, albeit at different times using different variations of the set.

Tanya Yuson, a producer at BASE Entertainment Asia, said this led to many logistical challenges, from weather inconsistencies to having to figure things out on the fly, since this was the first ever series of its kind.

“The brief actually came from Amazon Studios APAC. They have a regional head for unscripted content so they just gave the concept to us and, for the most part, trusted each country to execute it their own way,” she explained.

The cast was handpicked carefully to ensure an interesting mix of diverse professional backgrounds, from comedy stalwarts to young celebrities.

“Improv classes and workshops were given to all of them beforehand, to make sure they would be equipped to take on the various games, skits, and activities in the show,” said Ms. Yuson.

For Randolph Longjas, the director of Comedy Island Philippines, an important part of making the series as Filipino as possible was drawing from local mythology for the scripted story.

Growing up in Leyte, he drew from stories of the mythical island of Biringan, an advanced city that can provide gifts to humankind but that no one can explicitly talk about or ever visit.

“I wanted the universe to be relatable in terms of our folklore, from how the cast ended up there to why the island even exists. I adapted the concept of Biringan for Comedy Island, but I just named it Tawa-Tawa,” Mr. Longjas said.

He added that his initial story pitches to Ms. Uson didn’t pass, and he only had the mythical concept as a wild card. “She said no to the first three [ideas], and when I presented this one, she instantly said it was perfect,” he said.

WHAT COMES NEXT
The six-part series will launch with three episodes streaming back-to-back each week over a two-week period, from Aug. 31 to Sept. 7.

On whether a second season is being planned, Mr. Henares said that it will depend on the success of the show.

As head of Amazon Originals for the Philippines, he added that Filipinos should take pride in the fact that the series will be available on Prime Video not just locally, but in over 240 countries and territories worldwide.

“Philippine humor is different and will be interesting for non-Pinoys. We’re kengkoy (jokesters) and wholesome and we lean more towards the family-friendly, action, and adventure genres. Our comedy is very feel-good,” he said.

Comedy Island Philippines joins the thousands of TV shows and movies in the Prime Video catalogue, including exclusive local Filipino titles such as Fit Check: Confessions of an Ukay Queen, Cattleya Killer, Ten Little Mistresses, Walang KaParis, and Deleter.

Mr. Henares also gave a rundown of upcoming Filipino titles to look forward to on Prime Video — from In My Mother’s Skin, the Filipino horror film that garnered acclaim at Sundance Film Festival, and the rambunctious next season of Drag Den with Manila Luzon.

“We really want to delight everyone, from serious films to comedy to horror to romcoms. We come out with homegrown content at least once or twice a month,” he said.

Prime Video is available in the Philippines for P149 per month. For more information, visit www.primevideo.com. The streaming service offers a free seven-day trial. — Brontë H. Lacsamana

ACEN unit and Indon firm agree to develop RE projects in Indonesia

A SUBSIDIARY of Ayala-led ACEN Corp. and a member of Puri Usaha Group have agreed to develop renewable energy (RE) projects in Indonesia via a joint venture company.

In a stock exchange disclosure on Thursday, ACEN said its unit ACEN Indonesia Investment Holdings, Pte. Ltd. and PT Trisuya Mitra Bersama entered into an investment agreement and shareholders’ agreement for PT Puri Prakarsa Batam, the joint venture firm, on Wednesday.

In its media release in May last year, ACEN said the renewable energy projects would focus on large-scale solar power plants, battery energy storage system, and green hydrogen projects.

According to the release, the joint venture entity involves Suryagen Group — where PT Puri Prakarsa Batam is part of — and covers the Batam, Bintan, and Karikum islands, as well as East Tenggara province.

The projects to be built in Indonesia are intended to export power to Singapore via subsea cable, which is the Surgayen platform’s first project that it sought to develop.

To date, ACEN has around 4,200 megawatts of attributable capacity spread across the Philippines, Vietnam, Indonesia, India, and Australia. The company is targeting to reach 20 gigawatts in attributable renewables capacity by 2030.

For the second quarter, ACEN reported an attributable net income of P2.21 billion, up 23.5% from P1.79 billion previously.

Revenues rose by 32.2% to P11.33 billion while expenses also increased by 43.6% to P10.24 billion.

On Thursday, shares in the company declined by 2.34% or P0.12 to P5.01 each. — Sheldeen Joy Talavera

Fuse Lending sees strong credit growth

FUSE LENDING, Inc., a subsidiary of Globe Telecom, Inc.’s financial technology arm Mynt, expects double- to triple-digit loan growth this year after disbursements hit P100 billion as of July.

Loan growth for the rest of the year will be driven by holiday expenses, which could prompt consumers to use GCash products such as GGives and GScore, Fuse Lending President and Chief Executive Officer Tony Isidro said to reporters on Wednesday

“GGives enables customers to better afford bigger-ticket items like gadgets, cellphones, and computers, even furniture for the house,” he added.

GGives is GCash’s buy now, pay later product powered by Fuse Lending.

“Today, we’ve disbursed over P100 billion to over three million customers. And we know it’s a much bigger market than that… It’s a significant portion of the user base of GCash at the moment, but we believe that with the current products and more products in the pipeline, we’ll be able to create an even bigger positive impact to more and more Filipinos,” he said.

“While we disbursed [loans] to three million Filipinos, there’s so many more millions of our kababayans that need access to fairer loans,” he added.

Loan growth will also be supported by GCash’s in-house credit scoring system, GScore, Mr. Isidro said.

“We continue to push the envelope. We believe we’re in a good place right now, especially with the innovations we did with GScore, which is our proprietary trust score, we’ll enable more and more Filipinos to have access to fairer loans,” he added.

Majority or 65% of the loans disbursed as of July went to retail and consumers, while the remaining 35% went to micro and small businesses, Mr. Isidro said.

Meanwhile, on Wednesday, GCash launched Sakto Loans, an extension of GLoan, GCash’s instant cash loan, and GGives, its buy now, pay later loan.

GCash users may borrow P100 up to P1,000 with no interest, payable in 14 or 30 days, GCash said in a statement.

“Sakto Loans offers an added comprehensiveness to our already extensive product lineup. In instances where we only need a small amount to get by, this nano-loan feature will save us the time and energy of having to borrow from family and friends or even informal lenders,” Mr. Isidro said in a statement.

He said the product was made after an internal study found that while nine out of 10 Filipinos rely on loans, 57% of them tap informal lenders to make ends meet.

“Sakto Loans serves as an expansion of our suite of lending options GLoan, GCredit and GGives, which has provided users with a convenient way to borrow money with just a few taps on their phone. Through access to fair lending, we are able to provide more Filipinos access to borrowing means that truly prioritizes their needs,” he said.

“By using GGives or GLoans Sakto, Filipinos are now given the opportunity to borrow small amounts which they can use to pay for their daily transactions whether it’s online or offline,” he added. — AMCS

Phinma Education triples net income in first half

THE educational unit of Phinma Corp. has tripled its net income for the first half of the year on the back of higher enrollment figures. 

In a statement on Thursday, Phinma Education Holdings, Inc. said its consolidated net income tripled to P307.47 million versus P96.88 million a year ago. 

“Increase in costs and operating expenses to support the increase in enrollment and face-to-face classes were offset by lower credit loss provisions as a result of higher collection efficiencies,” the company said.

According to Phinma Education, it logged a 30% increase in second-semester enrollment compared with the same period last year. 

“This resulted in a 52% year-on-year growth in revenues for the first half of 2023,” the company said.

The company recently opened Phinma Cagayan de Oro College Iligan campus, Phinma Araullo University San Jose Campus in Nueva Ecija, and a new dentistry building at Southeastern University Phinma, Cebu City.

It also finished renovations in Phinma Saint Jude College Quezon City, Phinma Rizal College of Laguna, and Horizon Karawang in West Java, Indonesia, while another new building is underway at Phinma University of Pangasinan. 

Phinma Education has 10 schools with more than 124,000 students. The company claims to have a 79.06% passing rate for first-time takers across various licensure exams, while 71% of graduates are employed within one year after graduation. 

“This year is a convergence of our model continuing to show promise, the growing need for the services we provide, and our business doing well on all aspects. We hope to be able to reach more and more underserved students who need quality education the most, so that they can uplift themselves, their families, and communities,” Phinma Education President and Chief Executive Officer Chito B. Salazar said.

Shares of Phinma Corp., the parent firm of Phinma Education, were last traded on Aug. 30 when they finished at P20.30 apiece. — Revin Mikhael D. Ochave

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