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China will be able to keep economic growth stable – state planner

REUTERS

SHANGHAI – China has the confidence, condition, and ability to keep economic growth at a reasonable level, a senior state planning official told the Xinhua News Agency.

The world’s second-largest economy faces multiple challenges heading into 2022, amid a property downturn and with strict COVID-19 curbs in some areas hurting consumer spending.

China should evaluate the likely impact of policies on growth before implementation, and “be prudent” in rolling out those with contractionary effects, Ning Jizhe, deputy head of the National Development and Reform Commission (NDRC), said in the interview that was published on Wednesday.

The country will make preparations for next year’s economic work in advance and “strive to stabilize economic operations in the first quarter, the first half and even the whole year”.

China issued 1.46 trillion yuan ($229.21 billion) in the 2022 advance quota for local government special bonds to help spur investment and support the economy, the finance ministry said last week.

China will step up government spending, strengthen support to manufacturers and small companies, and ensure price stability, Ning added.

China will also work to stabilise industry supply chains, focus on solving chip shortage issues, and step up monitoring of commodity prices, said Ning, who is also the head of the National Bureau of Statistics.

To aid economic growth, China will continue to implement proactive fiscal policies, step up efforts to build an integral domestic market, while further shortening the foreign investment “negative list”, Xinhua quoted Ning as saying.

China uses a so-called negative list to ban or limit foreign investment in some industries, such as telecoms or resources.

China will also combine cross-cyclical and counter-cyclical measures to prevent wild economic volatility, Ning said. – Reuters

Russia violates WTO commitments with import bans, substitution policies -USTR

WASHINGTON, Dec 21 (Reuters) – Russia continues to move away from commitments it made to join the World Trade Organization in 2012, the U.S. Trade Representative’s office said on Tuesday, citing agricultural import restrictions and import substitution policies.

In an annual report to Congress on Russia‘s WTO compliance, USTR said Russia in 2021 introduced new tracking systems for consignments of goods through supply chains and has maintained non-science-based agricultural import restrictions.

“Over the past year, Russia has continued its trajectory of an economy moving away from the guiding principles of the WTO: non-discrimination, freer trade, predictability, transparency, and fair competition,” USTR said in the report.

“Rather, Russia maintains restrictive at-the-border measures, institutes behind-the-border measures to inhibit trade, and implements an industrial policy seemingly driven by the guiding principles of import substitution and forced localization.”

The United States has raised concerns about Russia‘s actions and will “use all appropriate means to resolve the matter and keep Russia’s markets open to U.S. exports,” USTR said.

The report noted that U.S. bilateral work with Russia on agricultural trade issues has been limited since 2014 due to Russia‘s actions in eastern Ukraine, and engagement in the WTO on Russia‘s access barriers has been limited. But the agency said it will continue to meet with industry stakeholders to discuss their concerns and strategies to remove such barriers.

The report did not mention any new U.S. trade measures that could be taken against Russia should Russian President Vladimir Putin invade Ukraine. If that should happen, U.S. officials are considering tough export control measures to disrupt Russia‘s economy, a Biden administration official told Reuters, including halting Moscow’s ability to import smartphones, key aircraft and auto parts and other materials.  – Reuters

Bars, nightclubs to shut in Canada’s British Columbia as Omicron takes grip

British Columbia will shut gyms, bars and nightclubs while allowing fewer people at tables in restaurants and cafes through the Christmas holiday period to curtail the spread of COVID-19, the Canadian province’s government said on Tuesday.

The temporary restrictions, to take effect on Wednesday and stay in place until Jan. 18, also include a ban on all indoor social events and gatherings, and a capacity limit of 50% for all concerts, sports games and theatres.

Coronavirus infections are rapidly increasing in Canada, with several of the 10 provinces reporting big jumps as Omicron replaces Delta as the dominant variant.

“COVID-19 cases continue to increase at a concerning rate, and we must take stronger measures to help protect British Columbians and ensure our health-care system is there when people need it,” said the province’s health minister Adrian Dix.

The neighbouring province of Alberta, where cases are also rising, said it would restrict attendance in venues that can hold more than 1,000 people to 50% capacity, a move that will also apply to National Hockey League games and the World Junior Hockey Championship, which begins on Dec. 26.

Montreal, Canada’s second-largest city, declared a state of emergency earlier on Tuesday to combat the virus.

Quebec, Canada’s second most populous province, has also shut bars, gyms and casinos, and ordered people to work from home to try to reduce the rapid spread of the Omicron variant. – Reuters

AstraZeneca, Oxford aim to produce Omicron-targeted vaccine

AstraZeneca Plc said on Tuesday it is working with Oxford University to produce a vaccine for the Omicron coronavirus variant, joining other vaccine-makers who are looking to develop the variant-specific vaccine.

“Together with Oxford University, we have taken preliminary steps in producing an Omicron variant vaccine, in case it is needed and will be informed by emerging data,” a spokesperson for the company said in a statement.

Oxford did not immediately respond to a request for comment outside business hours.

The Financial Times first reported the news, citing Sandy Douglas, a research group leader at Oxford.

“Adenovirus-based vaccines (such as that made by Oxford/AstraZeneca) could in principle be used to respond to any new variant more rapidly than some may previously have realised,” Douglas told FT.

A lab-study last week found that AstraZeneca‘s antibody cocktail Evusheld retained neutralising activity against the Omicron variant.

Vaccine makers Pfizer/BioNTech and Moderna also previously said they were working on Omicron– specific COVID-19 vaccines. Moderna said hopes to start clinical trials early next year. – Reuters

Glimmers of hope for a brighter 2022

As 2021 comes to a close, many are restless about the possibility of entering another year living with the COVID-19 pandemic. The extent of the virus’ impact has left lasting impressions on the Philippine business community, and small and medium enterprises (SMEs) particularly felt the brunt of it most of all.

These effects are expected to linger. According to a recent report by the United Nations Conference on Trade and Development (UNCTAD), global trade growth for 2022 remains uncertain due to continued disruptions in worldwide logistics networks, increases in shipping costs, and a slowing global economic recovery.

“Lower-than-expected economic growth rates are generally reflected in more downcast global trade trends. Rising commodity prices and inflationary pressures may also negatively affect economic prospects and international trade flows,” the Global Trade Update said.

Moreover, the report said the recovery this year, which was characterized by large and unpredictable swings in demand, have resulted in an increased stress on supply chains.

“Logistic disruptions and high fuel prices have further contributed to supply shortages and spiraling shipping costs. In particular, the backlogs across major supply chain hubs that have characterized most of 2021 could continue into 2022 and therefore negatively affect trade and reshape trade flows across the world,” the report added.

Global trade in 2021 is expected to reach an estimated $28 trillion, a 23% increase from 2020. Much of this boost was due to a strong recovery in demand following the easing of pandemic restrictions, economic stimulus packages, and increases in commodity prices. However, other variables such as the global semiconductor shortage, geopolitical factors and the regionalization of trade flows, governmental policies affecting international trade, and debt burdens muddy the outlook for the coming year.

Despite the uncertainties, the Department of Trade and Industry (DTI) is keeping optimistic. DTI Secretary Ramon M. Lopez recently affirmed his confidence that the country may reach 6%-7% gross domestic product growth in 2022, as long as the proper management of the COVID-19 and the reopening of businesses continue.

“If all programs are set in place and the continuous recovery from the pandemic, we might be seeing 6% to 7% (growth) next year, being also an election year,” he had said.

“We keep on hearing and we keep on reminding that we need to manage this, and I guess (everyone) is still following the public health protocol for us to maintain this kind of momentum we are seeing and not have the surge like what is happening right now in EU (European Union) countries,” he added.

Mr. Lopez cited DTI research that while around 10% of business establishments remain closed, 20% of which have permanently stopped their operations, many new enterprises are registering their businesses amid the pandemic.

“People still have to earn and find another livelihood. So they must have closed that business but they are opening another businesses. Of course, they have to continue to earn, to pivot, (to) look for new businesses. That is the reason why we have the data, over the years, the number of businesses that are renewing and registering new businesses, we count them all, the numbers continue to grow,” he said.

Data from the DTI show that as of end-August this year, total number of registered businesses rose to 2.08 million from 1.5 million at end-2019. In addition, there exists 5 million to 6 million entrepreneurs in the informal sector.

“There’s good news there, that entrepreneurship is alive in the country and that Filipinos are entrepreneurial. They find ways to earn, especially those who lost their jobs, so they shifted fast and now we’re seeing this growth,” Mr. Lopez added.

The optimism is not unwarranted. The Asian Development Bank (ADB) backed Mr. Lopez’s positive outlook for 2022 with a forecast of their own released this December, which stated that the country will remain on a steady, if more modest, growth path in 2021 and 2022, supported by an acceleration in the government’s vaccination program and a sharp drop in COVID-19 cases.

According to the supplement to the Asian Development Outlook (ADO) 2021, the Philippine economy will grow 5.1% in 2021 and 6.0% in 2022, up from the bank’s September forecast of 4.5% in 2021 and 5.5% in 2022.

“The Philippine economy has shown impressive resilience,” ADB Philippines Country Director Kelly Bird said.

“Growth momentum has clearly picked up on the back of the government’s vigorous drive to vaccinate Filipinos against the COVID-19 virus. Public spending on infrastructure and continued vaccination of the population will help the country further accelerate its recovery in 2022,” he said.

Vaccination has allowed the economy to slowly reopen, boosting consumer and business confidence. More than 57 million Filipinos, or nearly 65% of the target for vaccination, had received at least one COVID-19 vaccine dose as of Dec. 8, 2021. In addition to the government’s purchases of COVID-19 vaccines, the World Health Organization-supported COVID-19 Vaccines Global Access (COVAX) facility also donated supply for the country’s nationwide vaccination program. — Bjorn Biel M. Beltran

MSMEs’ vital role in economic recovery

Globally, micro, small, and medium enterprises (MSMEs) account for over 90% of businesses and more than 60%-70% of employment, and 50% of the world’s gross domestic product (GDP). In the Philippines, based on the most recent statistics from the Department of Trade and Industry, MSMEs comprise 99.5% of business establishments, 63% of the country’s workforce, and 40% of the country’s GDP in the past years.

These numbers show that MSMEs, for their large share among businesses, definitely have a large and significant role in helping the economy recover from the impacts of the coronavirus disease 2019 (COVID-19) pandemic, as long as they are given appropriate support.

International organizations and thought leaders recognize the importance of MSMEs in post-pandemic economic recovery.

The United Nations (UN) is at the forefront of recognizing MSMEs’ key role during the celebration of the MSME Day last June 27, with the theme “MSMEs: Key to an inclusive and sustainable recovery” this year. For the organization, this observance serves to “raise awareness of the contribution that small businesses make to sustainable, inclusive and resilient economic growth and, shared prosperity and decent work for all.”

This was echoed by the United Nations Conference on Trade and Development (UNCTAD) during a global summit back in April.

Due to their innovative and opportunity-seeking nature, UNCTAD wrote on its website, MSMEs can power a stronger recovery from the pandemic; but they need more support, especially through long-term structural policies.

“MSMEs’ smaller size allows them to be flexible and adapt to new environments such as the one created by COVID-19,” the organization noted. “Not only can they help overcome previous constraints related to lack of productive capacities and economic diversification in many low-income countries but also enhance a strong and sustainable recovery.”

MSMEs’ significant role in recovery is also seen within Southeast Asia (SEA) by the Asian Development Bank (ADB) as it released its Asia Small and Medium-Sized Enterprise Monitor 2020 last October.

“MSMEs in Southeast Asian economies mainly focus on domestic markets and their level of entrepreneurship remain suboptimal. Supporting the development of MSMEs, particularly in technology adoption and participation in global supply chains, will contribute to inclusive growth and aid in recovery efforts from COVID-19,” ADB Chief Economist Yasuyuki Sawada was quoted as saying in a statement.

ADB’s report highlighted that while the pandemic “exacerbated already growing global trade tensions and economic uncertainty” within the region, small businesses “hold the key to economic recovery in developing Asia” in many ways.

For instance, MSMEs are seen to have the potential to create more jobs. “In Southeast Asia, 72%-85% of MSMEs operate in rural areas. They absorb 70%-84% of MSME employees in their countries. Thus, their growth is crucial for providing jobs for the unemployed or informal workforces,” the report read.

The report also pointed out that inclusive growth will happen in developing Asia through entrepreneurship development, especially within the services segment of MSMEs, which are found to be “low-technology and domestically focused,” as well as start-ups and technology-based businesses which remain a fraction of MSMEs in SEA.

“It is crucial to foster this MSME segment to ignite resilient and inclusive growth at both national and regional levels,” the ADB wrote. — Adrian Paul B. Conoza

Aboitiz-led UnionBank opens its 150th Ark in Cebu, offers invaluable service to Cebuanos after ‘Odette’

Marking another milestone in its bank transformation efforts, Aboitiz-led Union Bank of the Philippines (UnionBank) opened its 150th Ark branch in Cebu last Nov. 29, 2021.

Aimed at continuing to provide superior customer experience in its physical touchpoints, the country’s first fully-digital bank branch opened its doors at the Queen City of the South.

Remaining grounded on their Cebuano roots, the Aboitiz family has always held the Cebuano people close to their hearts and they continue to be a major contributor to the progress of Cebu.

Innovation is a key driver of the Aboitiz businesses and the opening of UnionBank’s newest flagship branch is a testament to this.

Similar to the Ark branches nationwide, The Ark Cebu Exchange Arthaland bridges physical banking with digital banking for Cebuano customers. It has no queuing and features paperless, straight-through transactions, robust self-service machines, uniquely designed space with cozy conference and semi-private rooms plus multi-talented Branch Ambassadors who are specially trained to help customers enjoy the benefits of digital banking.

Strategically located in Cebu IT Park, The Ark Cebu Exchange Arthaland is in one of the most preferred investment regions in the Philippines. The branch is at the Ground Floor of the Cebu Exchange Tower at Salinas Drive in Lahug, Cebu City and is open Mondays to Fridays from 9:00 a.m. to 3:00 p.m.

First unveiled back in September 2017, UnionBank’s Ark branch introduced pioneering features that changed the way people looked at banking, leveraging technology to address the typical inconveniences associated with visiting a bank branch.

The Ark has no singular blueprint. Each Ark branch is unique and has a modular layout which allows it to adopt its design to deliver the best customer experience, considering the unique needs and branch banking behavior of the local customers that it serves. It can even be transformed as a venue for exclusive events.

UnionBank’s branch transformation helps enable digital adoption by allowing customers who prefer to transact in physical branches to also experience the benefits and features of the Bank’s digital innovations. This is part of UnionBank’s thrust to promote financial inclusion and stay true to its commitment that as it blazes the trail towards digitally transforming the way it does banking, “No one gets left behind”. And, true to this promise, the Ark branch at Arthaland is able to serve Cebuanos who need access to ATMs as other banks continue to be affected by the power and network outages caused by super-typhoon Odette.

 

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BoP back to deficit in November

By Luz Wendy T. Noble, Reporter

THE country’s balance of payments (BoP) position returned to a deficit in November as the National Government repaid some foreign loans and external trade improved.

Last month’s BoP position swung to a $123-million deficit, from the $1.473-billion surfeit seen in November 2020, based on data released by the Bangko Sentral ng Pilipinas (BSP) on Monday evening.

November’s BoP position also reversed the surplus worth $1.141 billion in October. This was the smallest deficit in eight months or since the $73 million logged in March.

“The BoP deficit in November 2021 reflected outflows arising mainly from the National Government’s foreign currency withdrawals from its deposits with the BSP as the National Government settled its foreign currency debt obligations and paid for various expenditures,” the central bank said in a statement.

The BoP deficit in November reflected the improvement in the country’s external trade as the economy continued to reopen, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The private sector’s need for imported goods and settlement of external payables also likely led to the BoP deficit in November, Asian Institute of Management economist John Paolo R. Rivera said.

“Note that this can be due to the recovering economy wherein the inadequacy of domestic supply is compensated by imported supply of goods and services. I think this is just transitory as the economy adjusts to the recovering demand,” Mr. Rivera said in a Viber message.

The Philippine economy continued to further reopen in November, as the number of coronavirus disease 2019 (COVID-19) infections declined.

Latest data from the Philippine Statistics Authority showed the trade deficit stood at $4.02 billion in October, wider than the $2.05-billion shortfall logged a year earlier and the $4-billion gap in September.

In October, exports rose by 2% year on year to $6.41 billion, while imports jumped by 25.1% to $10.43 billion.

“Imports could have also been bloated by the higher prices of imported oil,” Mr. Ricafort added.

As of Nov. 30, the prices of gasoline, diesel, and kerosene increased by P18.10, P15.70, and P13.19 per liter, based on data from the Department of Energy.

Global oil prices have soared in recent months as major oil exporting countries have yet to finalize an agreement on increasing production despite the recovery in demand.

For the first 11 months of 2021, the BoP posted a $353-million surplus, much smaller than the $11.786-billion surfeit in the same period of 2020.

“Based on preliminary data, this cumulative BoP surplus reflected inflows such as from personal remittances, trade in services, net foreign borrowings by the National Government, and foreign direct investments, which were partly offset by a wider trade in goods deficit,” the central bank said.

The BoP gives a glimpse of the country’s transactions with the rest of the world. A deficit means more funds left the country, while a surplus shows that more money came in.

At its end-November level, the BoP reflected gross international reserves worth $107.72 billion, which fell by 1.56% from the $107.89 billion as of end-October.

Such dollar reserves are enough to cover 8.7 times the country’s short-term external debt based on original maturity and 5.7 times based on residual maturity, the BSP said.

It also represents buffers equivalent to 10.2 months’ worth of imports of goods and payments of services and primary income.

Mr. Ricafort said the seasonal remittance inflows in December could help improve the BoP position coming into the yearend.

Earlier this month, the BSP revised its BoP projection for end-2021 to a $1.6-billion surplus, from the $4.1-billion surfeit it estimated in September. This is equivalent to 0.4% of the gross domestic product from 1.1% previously.

PSE seeks to adjust LSI allocation in IPOs

COURTESY OF PHILIPPINE STOCK EXCHANGE, INC.

By Keren Concepcion G. Valmonte,  Reporter

THE Philippine Stock Exchange (PSE) is considering adjusting the allocation of shares for local small investors (LSIs) in initial public offerings (IPO), as well as mandating LSI allotments in follow-on offerings (FOO).

In a consultation paper uploaded on the PSE website, the bourse operator said it is proposing to tweak the percentage of the allocation to LSIs in IPOs to not less than 5% but not more than 10% of the entire offer, depending on the size of the offering.

Under Article 3, Part F of the PSE’s Consolidated Listing and Disclosure Rules, companies going public are currently required to have an LSI allocation of 10%.

“However, the Exchange has noted that in IPOs conducted over the last two years, the total LSI take-up, in terms of value, was only 14.45% of the 10% LSI allocation,” the PSE said.

It noted that in the case of big IPOs, “a large portion of the LSI shares may end up being unsubscribed and taken up by the underwriter.”

“Aside from the financial impact on the underwriter, such a situation may also have an adverse effect on the stock because the disposition by the underwriter of a large number of offer shares post-IPO may cause the stock price to decline,” the PSE said.

“On the other hand, retention by the underwriter of a big block of IPO shares may negatively impact the liquidity of the stock.”

However, the PSE will be keeping its “clawback mechanism” rule. This allows companies to increase the shares allocated for small investors by 5% if the initial LSI offer is oversubscribed by five times or more.

“Relaxing the requirement could help the local small investors receive a more equitable distribution and bigger chance to participate in IPOs and FOOs,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message on Tuesday.

Mr. Limlingan said amending the rule will also “give more flexibility to the underwriters in distributing the shares depending [on] where the demand is stronger.”

Also, the PSE wants to make LSI allocation mandatory in follow-on offerings, with not less than 5% but not more than 10% of the total offer shares allotted for small investors.

“To ensure equitable distribution of shares and ensure LSI participation, the Exchange proposes to make LSI allocation mandatory in both IPOs and follow-on offerings,” it said.

Meanwhile, the PSE is also proposing a lock-up rule, which would apply to companies conducting follow-on offerings and to firms listing by way of introduction or through backdoor listings.

“The objective of the lock-up rule is to prevent stockholders availing of shares at a subscription price lower than that offered to IPO investors from immediately flipping their shares in order to take advantage of the discount, to the detriment of the IPO investors,” the PSE said.

The PSE also hopes to protect those investing in FOO shares.

“Lock-up periods would be able to send signals to shareholders entering that they believe in the longer-term prospects of the company,” Mr. Limlingan said.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said the proposed rules are an effort to further protect “the interest of retail investors.”

“[This is] to encourage greater participation of the investing public through additional safeguards or checks-and-balance versus undue advantage or potential abuses by other investor groups, whether or not intended or deliberate at times,” Mr. Ricafort said in a separate Viber message.

Full foreign entry likely to help modernize railway sector

A TRAIN is seen at the Philippine National Railways Tutuban Station in Manila in this file photo. -- PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Arjay L. Balinbin, Senior Reporter

A PROPOSED LAW that would allow 100% foreign ownership in public services is expected to accelerate the modernization of railways and subways, according to companies involved in railway projects.

The Senate last week approved on third and final reading a bill amending the Public Service Act (PSA), or Commonwealth Act No. 146, to relax restrictions on foreign investment in public services such as telecommunications, air carriers, domestic shipping, railways, and subways.

Light Rail Manila Corp. (LRMC), the private operator of Light Rail Transit Line 1 (LRT-1), said the measure will help spur investments in the transportation sector.

“This will certainly help bring in more investments and modernize the transport sector leading to better services, so we think this is a welcome development,” LRMC Spokesperson Jacqueline S. Gorospe told BusinessWorld in a phone message on Dec. 17.

LRMC is currently building the LRT-1 Cavite Extension. The project aims to add an 11.7-kilometer Baclaran-Bacoor, Cavite segment to the current 18.1-kilometer train line. The new stretch will have eight stations. It is expected to be fully operational by the second quarter of 2027.

“LRMC has always looked at best practices and working with leaders from different industries; we think this legislation will allow more of the best practices to emerge,” Ms. Gorospe added.

Meanwhile, Philippine Infradev Holdings, Inc. President and Chief Executive Officer Antonio L. Tiu said the proposed legislation “will be a boost to Build, Build, Build,” the Duterte administration’s flagship infrastructure program.

“Let us wait until [the] pandemic is over, [the result] should be positive,” he added.

Philippine Infradev’s wholly owned subsidiary is currently building the Makati City subway. It is expected to be operational by January 2026. The Fiscal Incentives Review Board recently approved the grant of tax incentives for the subway project.

Sought for comment, transport expert Rene S. Santiago said that “removing legal obstacles is first step, but will not automatically lead to more foreign investments in railways and subways because of the inherently poor financial returns.”

“It is strange to classify tollways as public utility (in the Senate version of the bill), but not railways and subways,” he told BusinessWorld in a phone message. “All three share similar characteristics.”

Unlike railways and subways, tollways will still be subject to the 40% foreign ownership limit.

For his part, Terry L. Ridon, convenor of InfraWatch PH, said in a separate phone message that the Philippine Senate is “mistaken if it thinks that merely opening up to full foreign ownership of public utilities and services will bring in more foreign investments to the sectors.”

“The main binding constraint to foreign investment was never nationality restrictions, but the governance climate in the country, such as whether businesses will be subjected to regulatory capture, red tape and corrupt activities,” he added.

LRMC is the joint venture of Ayala Corp., Metro Pacific Light Rail Corp. and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. It holds the P65-billion, 32-year PPP contract to operate LRT-1 and build its extension to Cavite.

MPIC is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group, which it controls.

Philex says $224-M mine ready by 2024-25

PHILEXMINING.COM.PH

Philex Mining Corp. announced its plan for a $224-million Silangan copper and gold project in Surigao del Norte with an estimated 571 tons worth of mineral resources.

Philex will be leading this project, along with its subsidiary, Silangan Mindanao Mining Co., Inc. (SMMCI).

“This is an opportunity for the mining industry to play a pivotal role as we enter the post-pandemic world,” said SMMCI Chief Operating Officer Michael T. Toledo in a media round table on Tuesday.

“We all know how much mining can generate so much in terms of income, revenues, and taxation, and how it can also generate employment if allowed to flourish. We can hopefully propel the economy as we move on to year 2022,” added Mr. Toledo, who is also chairman of the Chamber of Mines of the Philippines (CoMP).

The Silangan copper-gold project will initially process 2,000 tons of ore in a day, until this reaches 12,000 tons a day or four million tons annually upon its completion.

“Mining is not the enemy. It’s poverty. And it is the goal of Philex, SMMCI, as well as the CoMP, to make sure that role is played the best level possible. To really do what needs to be done and to ensure the benefits of mining trickles down to all our people,” Mr. Toledo said.

The mine is comprised of two ore deposits that are 0.52% copper and 0.64% gold, higher than any other Philex projects.

“The copper and gold grades in Silangan are twice as high as the current grades of Padcal, which for decades has been the life blood of Philex, but is now approaching the end of its mine life,” said Eulalio B. Austin, president and chief executive officer of Philex.

The project is divided into phases, with the first phase covering the Boyongan deposit. Boyongan has 81 million tons of ore containing 0.67% copper and 1.12 grams of gold per ton. It is projected to produce 2.8 million ounces of gold and 993 million pounds of copper during its mine life.

Once the second phase is commenced, the Bayugo deposit will increase annual production by 6.5 million tons.

The first phase has a mine life of 28 years, and will take two and a half years to develop beginning second quarter of 2022, will be ready for commercial use by late 2024 or early 2025.

“Silangan will be a major exporter of metallic minerals for the Philippines, generating in the future much needed foreign exchange receipts of the country that will augment and increase the country’s foreign currency reserves that can improve the country’s ability to settle foreign currency requirements for economic recovery post COVID-19 (coronavirus disease 2019) pandemic,” Mr. Toledo said.

The project is expected to create employment in towns surrounding the mine and comes with a corporate social responsibility plan that has initiatives for education, livelihood, and the promotion of socio-cultural activities.

Silangan will have a disturbed area of 24.91 hectares, with Philex offsetting this with plans to reforest an area of 185.24 hectares.

“They key to our community development and social acceptance is partnership building. We give credence and importance to what the people feel and say,” said Victor A. Francisco, Philex vice-president for environment and community relations.

“We want the people in our host areas to know we are a good neighbor, and in operationalizing that, we want them to know what is happening in their area,” he added.

The project will be financed by fresh capital infusion from Philex, equity via stock rights offerings, and possible debt.

Philex has filed an application to raise as much as P3.15 billion through a stock rights offering of up to 842 million common shares with the Securities and Exchange Commission and the Philippine Stock Exchange.

Philex Mining Corp. is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Metro Pacific Investments Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Luisa Maria Jacinta C. Jocson

FLI’s P10-B bonds four-times oversubscribed

Filinvest REIT Corp. manages a portfolio of 17 office buildings, of which 16 are located in Northgate Cyberzone, Filinvest Corporate City in Muntinlupa. — COMPANY HANDOUT

Filinvest Land, Inc. (FLI) listed the second tranche of its P30-billion shelf-registered bonds in a fundraising that was more than four times oversubscribed from its base offer of P8 billion.

The company raised P10 billion through its latest issuance, comprising four-year 4.5030% fixed-rate bonds due in 2025 and six-year 5.2579% fixed-rate bonds due in 2027.

In a statement, FLI said the proceeds “will allow the company to implement its capital expenditure program.”

“This latest listing brings the total amount of FLI and its subsidiary bonds to be listed in the PDEx (Philippine Dealing & Exchange Corp.) trading platform to P61.1 billion,” FLI President and Chief Executive Officer Lourdes Josephine Gotianun-Yap said during the listing ceremony on Tuesday.

PDEx President and Chief Executive Officer Antonino A. Nakpil said they were advised that the company’s order book “totaled just over P30 billion or three times the final issue size.”

FLI’s fixed-rate bond listing marks the 21st at the PDEx this year, bringing the year-to-date total of new listings to P208.59 billion. Meanwhile, the total tradable corporate debt instruments stood at P1.29 trillion, which are issued by 53 companies through 189 securities.

FLI’s fixed-rate bond issuance is the second tranche of its P30-billion shelf-registered bonds. The initial P8.1-billion tranche was issued in November 2020.

The company tapped BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., Eat West Banking Corp., First Metro Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. to be the joint lead underwriters and bookrunners of the issuance. RCBC was also assigned as Trustee.

Meanwhile, FLI shares at the stock exchange on Tuesday went down by 0.91% or one centavo to close at P1.09 apiece. — Keren Concepcion G. Valmonte

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