Eagle Cement acquisition seen likely to go through

November 1, 2022 | 12:05 am

MINORITY shareholders of Eagle Cement Corp. are likely to accept the tender offer from San Miguel Corp. (SMC), a credit research provider said, paving the way for the consolidation of two companies led by businessman Ramon S. Ang.

“In general, if indeed SMC’s planned transaction of purchasing an 88.5%-stake in Eagle Cement will not be subject to review by the PCC (Philippine Competition Commission), then it is likely the transaction could go through,” CreditSights Asia-Pacific Corporates Analyst Rohan Kapur said in an e-mail.

The acceptance from minority shareholders is likely “considering the 43% premium to the value of shares, over the share price before the proposed deal was announced, offered to the major shareholders,” he added.

Earlier this month, Eagle Cement’s majority shareholders agreed to sell their holdings to San Miguel Equity Investments, Inc. (SMEII), a unit of SMC.

CreditSights earlier said the acquisition of an 88.5% stake in Eagle Cement might be blocked by the antitrust watchdog, which it said previously blocked a planned acquisition by SMEII of Holcim Philippines, Inc. It said, “a similar outcome may be possible here.”

According to Mr. Kapur, the PCC review was the main concern for the transaction to go through, and receiving the notice from the commission is likely to see the acquisition push through.

Mr. Kapur said the board of SMC has approved the transaction, “and with the PCC green light, there should not be significant hindrances for the deal to go through.”

In a disclosure to the Philippine Stock Exchange, SMC said it received a notice from the PCC on Oct. 27 which said that the acquisition is not subject to the notification requirement under its implementing rules and regulations (IRR).

SMC said that with the issuance, “the transaction shall not be subject to review by the PCC based on the IRR of [the] Philippine Competition Act.”

It added that the next step would be the completion of a mandatory tender offer of SMEII for the acquisition of 11.5% equity interest in Eagle Cement.

“SMC would now need to proceed to make a mandatory tender offer for the remaining 11.5% of Eagle’s shares, which are not owned by Ramon Ang and his family,” Mr. Kapur said.

He said the acquisition would “roughly double SMC’s cement production capacity.”

SMEII and its three subsidiaries have a cement production capacity of 9 million metric tons per annum (mmtpa). If the acquisition pushes through, Eagle Cement’s plant in Bulacan will add 8.6 mmtpa to SMC’s total cement production capacity.

“The acquisition will also create synergies with SMC’s growing infrastructure business, where it is developing various arterial expressways across Luzon, as well as the mega New Manila International Airport,” Mr. Kupar added.

Mr. Kupar said that based on Eagle Cement’s first-half results, SMC could expect its consolidated revenues and earnings before interest, taxes, depreciation, and amortization (EBITDA) to rise by 2% and 4%, respectively.

“Eagle’s acquisition will add a not-so-material contribution to SMC’s existing revenues and EBITDA, according to us,” he added. — Justine Irish D. Tabile

Full foreign capital in RE projects to bring ‘more supply, lower power prices’

November 1, 2022 | 12:05 am

THE Philippines is expected to benefit from newer, cutting-edge technologies after the legal opinion issued by the Justice department that said investments in “inexhaustible” renewable energy (RE) are not subject to foreign ownership limits.

“The opinion of foreign ownership restrictions on renewable energy investments in the Philippines encourages more foreign direct investment into the country,” Emmanuel V. Rubio, president and chief executive officer of Aboitiz Power Corp., said in an e-mail interview on Oct. 25.

Earlier this month, the Department of Energy (DoE) said that investments in the RE sector might be eased after the legal opinion of the Department of Justice (DoJ) that said exploration, development, and utilization of RE sources are not subjected to the 60:40 foreign equity limitation.

As mandated by Section 2, Article 12 of the 1987 Constitution, the state may enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or corporations or associations at least 60% of whose capital is owned by Filipinos.

After the DoJ legal opinion, the DoE drafted a revised implementing rules and regulations (IRR) of the Renewable Energy Act of 2008, which limits foreign capital in RE projects to 40%.

Mr. Rubio said that with the DoJ opinion, “with more competition in the industry, consumers can look forward to more supply and lower power prices.”

DoE Energy Assistant Secretary Mylene C. Capongcol told BusinessWorld in a Viber message on Oct. 28 that the department targets to release the revised IRR by mid-November.

“We are now collating the comments received and preparing the draft,” she said, adding that the next step is to work with the DoE’s legal service “for the finalization of the revised IRR.”

Alternergy Holdings Corp.’s Vice-President and General Counsel Janina A. Bonoan told BusinessWorld said in an interview last week that the department is set to take out some provisions of the RE Act to lift restrictions on foreign ownership in RE investments.

“We have a consultation with the DoE regarding the proposed provisions on the amendments of the RE law, so they issued draft amendments to the RE law which then deleted Section 19 of the RE [law] IRR,” she added.

Section 19 of the RE law’s IRR states that all forces of the potential energy and other natural resources are owned by the state and should not be alienated.

“The State may directly undertake such activities, or it may enter into co-production, joint venture or co-production sharing agreement with Filipino citizens or corporations or associations at least 60% of whose capital is owned by Filipinos,” Section 19-B. of the RE law’s IRR states.

It also says that foreign RE developers may also be allowed to undertake RE development through an RE service or operating contract with the government.

ACEN Corp. Head of Corporate Communications and Sustainability Irene S. Maranan said that the company expects the legal opinion to help increase investments in renewables.

“This is a welcome move as it could attract more investments in renewables, and help attain the country’s goal to reach 35% share of renewables by 2030,” Ms. Maranan said in a Viber message on Friday. — Ashley Erika O. Jose

Festival of Lights returns onsite for the holidays

November 1, 2022 | 12:04 am

FOR over a decade, lanterns along Ayala Avenue would signal the start of the Christmas season at Makati’s central business district. Families and friends would flock to the Ayala Triangle Gardens to witness the Festival of Lights. That tradition pivoted online in 2020 due to the coronavirus pandemic. Now, after two years, the annual holiday tradition returns onsite on its 14^th edition with several new activities.

Ayala Land will welcome the Christmas season at 6 p.m. on Nov. 3 by lighting up the Christmas decor along Ayala Avenue. Traditional Filipino-style holiday decor will adorn the Makati Central Business District. In line with Ayala Land’s advocacy for sustainability, the giant lanterns used last year will be the main element this year.

“We actually wanted to come back last year but we put the safety of the people first,” AyalaLand Head of Marketing and Communications Christine C. Roa said at the press launch at the Ayala Tower One building on Oct. 27.

“We wanted to bring back what they were used to, but because it’s been two years, we wanted to offer something different, something nicer,” she said.

In addition to the decorations in front of Tower One, each bay along the whole stretch of Ayala Avenue will now have more ornaments. There will also be a giant parol installation by the courtyard of Ayala Triangle Gardens to make it easier for those who would like to take pictures close to the decorations.

THE FESTIVAL OF LIGHTS
After two years of virtual shows, the Festival of Lights show is finally going live again at the Ayala Triangle Gardens beginning Nov. 10.

This year’s show will be a live 360-degree experience. Conceptualized by director Ohm David and lighting designer Sueyen Austero, the familiar dancing string and laser lights with floating shapes will remain, but in addition, a giant 3D animated video will be projected on the canopy façade at the Ayala Triangle Gardens courtyard. The 3D projection, created in collaboration with Kroma and Acid House, will begin the show with a fun and magical introduction to the actual light show.

“We wanted something to symbolize coming together. So, we gathered different indigenous patterns (from around the country) [for the lights show],” Mr. David said.

“Definitely, some will be emotional seeing these lights live again, especially for the children. That’s what we’re looking forward to,” Mr. Austero said.

Three musical medleys (with a running time of five minutes each) will accompany the show. The first medley is an orchestral rendition by the Manila Symphony Orchestra. This will be followed by a TikTok inspired medley which is a collaboration among composers Tris Suguitan, Jazz Nicolas, and Mikey Amistoso. The show ends with a chorale rendition by musical composer Jazz Nicolas, featuring the Pembo Elementary School children’s choir.

“While we wanted to bring back what the people were expecting, we wanted something new,” Ms. Roa told members of the press.

“We did not want it to be just the usual Christmas songs. We wanted it to be more hip, and more danceable,” she said, noting that the TikTok-inspired medley was a new idea brought by trends that emerged during the lockdown.

Still, a Filipino Christmas is not complete without the Simbang Gabi. Masses will be held on Dec. 15 to 23 at the Ayala Triangle. The first evening of the mass will open with a performance by the Philippine Youth Symphonic Band on Dec. 15, 6 p.m.

“Aside from the Festival of Lights, people come here to have their reunions, to see friends, and to bond with family. We want the venue to be very special for them,” Ms. Roa said.

WHAT’S NEW?
For the first time this year, Ayala Land, in partnership with the French Embassy, will hold a Christmas Market at Ayala Triangle Gardens from Dec. 2 to 31. Inspired by the Marche de Noele Christmas market in Paris, Lille, and Strasbourg, it will feature French restaurants and products, as well as Filipino artisanal goods.

Ms. Roa said that the rest of the food and beverage establishments at the Ayala Triangle Gardens will open on the first week of December.

The Christmas Market’s launch in Dec. 2 will see performances by French and Philippine children’s choirs, and carnival acrobats.

Ayala Land will also have its first Christmas Holiday Concert in Circuit Makati at the Samsung Performing Arts Theater on Dec. 20 to 22. It will feature performances by the Manila Symphony Orchestra and the Steps Dance Studio, among others. More details will be announced closer to the concert dates.

For more information, visit Ayala Land at www.ayalaland.com.ph. — Michelle Anne P. Soliman

BI to hold alien registration at Robinsons Manila

November 1, 2022 | 12:04 am

THE Bureau of Immigration (BI) tapped Robinsons Manila as the official venue for the agency’s annual registration of foreigners.

In a statement, Robinsons Land Corp. (RLC) said its Manila mall will be the venue for BI’s alien registration program from Jan. 2, 2023 to March 2, 2023.

Foreigners can go to the BI’s registration area at the second level, center atrium of Robinsons Manila, 9 a.m. to 5 p.m., Monday to Friday.

Under Republic Act No. 562 or the Alien Registration Act of 1950, all registered aliens are required to report in person to the BI within the first 60 days of every calendar year “with the aim to strictly enforce compliance with the Immigration Law for the interest of national security, public safety and public order.”

The BI also extended services in district offices located at Robinsons Ilocos, Robinsons Palawan, Robinsons GenSan and Robinsons Dasmariñas.

These services include extension of temporary Visitor’s Visa, issuance of emigration clearance certificate, special work permit, provisional work permit, and student study permit, and processing and payment of annual reports.

The district offices can also receive applications for changes to or renewal of immigrant and non-immigrant visas, as well as application for dual citizenship.

Bank lending growth picks up to 27-month high in September

November 1, 2022 | 12:04 am

CREDIT GROWTH picked up to its fastest in 27 months in September as economic activity continued to rebound despite rising borrowing costs, and with liquidity also rising.

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) on Monday showed outstanding loans by big banks, net of reverse repurchase (RRP) placements with the central bank, rose by 13.4% year on year in September to P10.494 trillion, picking up from the 12.2% growth logged in August.

The September pace was the fastest in 27 months or since the 11.2% expansion recorded in May 2020.

On a month-on-month seasonally adjusted basis, lending net of RRP placements with the BSP increased by 1.7%.

Meanwhile, including RRPs, bank lending grew by 12.5% in September, faster than the previous month’s 11.6%

Broken down, outstanding loans to residents net of RRPs grew by 13% to P10.169 trillion in September from 12.1% in August.

Borrowings for production activities rose by 12.3% to P9.203 trillion in September, fueled by an expansion in loans for real estate activities (16.3%); manufacturing (16.2%); information and communication (25.5%); and wholesale and retail trade, repair of motor vehicles and motorcycles (10.8%).

Consumer loans to residents also jumped by 20.5% to P965.994 billion, faster than the 18.3% growth seen in August, amid an increase in credit card loans (26.1%), motor vehicle loans (4.3%), and salary-based general purpose consumption loans (56.8%).

Meanwhile, outstanding loans to non-residents net of RRPs expanded by 26.6% to P324.808 billion in September, faster than the 16.3% growth seen the previous month.

“The continued expansion in lending activity and ample liquidity will support the recovery of economic activity and domestic demand. Looking ahead, the BSP will ensure that liquidity and lending conditions remain consistent with its price and financial stability mandates,” BSP Governor Felipe M. Medalla said in a statement.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that credit growth continued to pick up in September “as the economy reopened further towards greater normalcy.”

“Loan growth again sustaining double-digit growth rate recently … has become one of the bright spots in the Philippine economy and also fundamentally supports faster economic growth, going forward,” Mr. Ricafort said.

“However, offsetting risk factors include higher inflation and higher local and global interest rates that fundamentally increase borrowing costs of consumers, businesses, government and other institutions,” he added.

BSP Governor Felipe M. Medalla last week said the central bank could match the Federal Reserve point by point to support the peso and prevent it from feeding into price pressures.

Mr. Medalla said the Monetary Board could raise benchmark interest rates by 75 basis points (bps) at their Nov. 17 meeting if the Fed delivers a hike of the same magnitude at their Nov. 1-2 review.

The central bank has so far raised benchmark interest rates by 225 bps this year as it seeks to rein in rising inflation, while the Fed has hiked borrowing costs by 300 bps since March.

The BSP sees inflation averaging 5.6% this year, well above its 2-4% target. In the first nine months, the consumer price index averaged 5.1%.

For October, the BSP expects headline inflation to have settled within 7.1-7.9%, up from 6.9% in September.

MONEY SUPPLY
As lending growth continued to pick up, M3, or the broadest measure of liquidity in an economy, expanded by 5% to P15.35 trillion in September, preliminary BSP data released on Monday showed. This was slower than the revised 6.7% growth in August.

On a month-on-month seasonally adjusted basis, M3 decreased by 0.2%, the BSP said.

Domestic claims rose by 10.8% in September, slower than the revised 11.4% in August. Claims on the private sector grew by 10.1% from 8.9% the previous month amid increased lending to non-financial firms and households.

Meanwhile, net claims on the central government grew by 15.3% in September, slowing from 21.2% in August, on sustained borrowings by the National Government.

On the other hand, net foreign assets (NFA) in peso terms contracted by 1.7% in September following the 0.8% decline the prior month.

“The NFA of banks declined mainly on account of higher bills payable. Meanwhile, the BSP’s NFA position was broadly steady year on year,” Mr. Medalla said. — Keisha B. Ta-asan

Rihanna makes music comeback after six years with new song ‘Lift Me Up’

November 1, 2022 | 12:03 am

LONDON — Chart-topper Rihanna released her first solo music in six years on Friday, an emotional ballad written in tribute to late actor Chadwick Boseman.

“Lift Me Up,” Barbados-born Rihanna’s first new song since her 2016 album Anti, features on the soundtrack of upcoming Marvel film Black Panther: Wakanda Forever.

The movie is a sequel to the 2018 box office hit Black Panther in which Mr. Boseman played the lead King T’Challa.

The actor died in 2020 after a four-year battle with colon cancer that he had kept private. He was 43.

“Blessed to have written this song in honor of Chadwick Boseman and even more blessed to hear the baddest @badgalriri voice it to perfection,” Tems, the song’s co-writer, wrote on Instagram, referencing Rihanna.

Rihanna’s fans have been waiting for a follow-up to Anti, her eighth studio album. While the singer, born Robyn Fenty, has featured on songs “Lemon” and “Believe it” in recent years, “Lift Me Up” is her first solo release since Anti.

Early last week, the 34-year-old Grammy Award winner, who will perform at the Super Bowl halftime show in February, had teased the new track, in which she sings: “Lift me up / Hold me down / Keep me close / Safe and sound.”

In recent years, Rihanna, whose chart-topping hits include “Umbrella,” “Diamonds,” and “Work,” has developed her makeup and lingerie lines. She welcomed a baby in May with her rapper partner A$AP Rocky. — Reuters

Holiday spending to lift mall operators, retailers

November 1, 2022 | 12:03 am

SM-mall — SM CITY San Mateo launched the Bears for Joy, an annual charity program of SM Supermalls, Oct. 29. — PHILIPPINE STAR/ WALTER BOLLOZOS

HOLIDAY spending is expected to bring some much-needed cheer to Philippine mall operators and retailers, according to Colliers Philippines.

In a Oct. 27 report, Colliers said major mall operators are now reporting that foot traffic is now at 85-95% of 2019 levels.

“Consumer traffic is reverting to 2019 levels and we see more retailers now willing to take up physical mall space. Holiday-induced spending should further buoy the retail sector’s recovery, which should translate to higher mall rents and declining vacancies,” Joey Roi Bondoc, Colliers associate director for research, said in the report.

In anticipation of more consumer traffic ahead of the holiday season, Colliers noted that many retailers took up more physical mall space in the third quarter. For instance, Skechers and Superga opened in Rockwell’s Powerplant Mall, while Ever New Melbourne opened in Ayala’s Trinoma mall.

Collier said food and beverage, and clothing and footwear segments still dominated the physical space take-up in the third quarter.

At the same time, mall vacancies are still expected to go up to 16% by end-2022. Vacancy in Metro Manila malls inched up to 15.4% in the third quarter, from 15.2% in the first quarter of 2022.

“We attribute the (vacancy) rise to the completion of 356,000 square meters of new supply. We project vacancy to inch up further to 17% in 2023 before receding to 14% in 2024,” Collier said.

Collier said vacancy rates are expected to improve by 2024, which will raise leasing rates.

Mall leasing rates inched up 0.4% in the third quarter, and are expected to rise 1% by yearend, Collier said, a reversal of the combined 15% decline from 2020 to 2021.

Amid rising inflation, Colliers said mall operators and retailers should keep a close eye on retail segments that may be most affected by higher prices and those that will be able to withstand the impact.

Developers should also reassess the ideal sizes for upcoming retail outlets, as well as use their event spaces and activity centers for events that will attract more consumers.

“High-density retail spaces were greatly affected by COVID lockdowns. Now that restrictions have eased and consumers are starting to go out and gather, Colliers recommends that retailers continue encouraging social distancing measures and implementing regular sanitation and other health and safety protocols. Now is an opportune time to ramp up marketing of these high-density retail spaces,” Colliers said. — Cathy Rose A. Garcia

Allianz PNB Life hopes to sustain strong performance for rest of year

November 1, 2022 | 12:03 am

ALLIANZ PNB LIFE Insurance, Inc. is hoping to sustain its strong performance to end the year as it continues to invest in technology and upskilling their agents and financial advisors, an official said last month.

Allianz PNB Life Chief Marketing Officer and Head of Sustainability Gino Riola said the insurance company hopes to maintain its robust performance for the rest of the year.

“The results that recently came out were extremely humbling. Of course, we have our growth targets, but for it to have been achieved this early in our existence as an organization (is quite surprising),” Mr. Riola said.

“We just (have to) continue. And what we’re doing is very clearly working, both in terms of recruitment, getting the brand out there, and making sure that people can relate to Allianz,” he said.

Mr. Riola said part of the firm’s advocacies is to broaden insurance awareness and educate the public as industry concepts can be a bit “daunting” for consumers.

“The government back in 1998 targeted that by 2020, insurance penetration should be at 20%. But insurance penetration at the Philippines is still below 2%,” he said.

Still, he noted that a research report commissioned last year by Allianz PNB Life showed the global health crisis has led to an increase in insurance awareness among Filipinos.

To widen its reach in the insurance sector, Mr. Riola said the company has launched new solutions and enhanced its digital tools.

Allianz PNB Life has also invested in training programs to boost the expertise of their agents and financial advisors and help them better address the protection and health needs of the customers, he said.

Asked if high inflation has dampened demand for insurance products, Mr. Riola said it has not happened so far.

“Part of our message is that when it comes to financial wellness, you have to attend to your different needs. And we of course, believe that tending to your financial needs, is equally important,” he said.

“This is where financial advisors, our life changers, come in and make sure that the product that our customers and policyholders purchase is relevant to their needs,” Mr. Riola added.

Allianz PNB Life was the country’s fourth-largest life insurer in terms of New Business Annual Premium Equivalent in 2021 with P3.87 billion, Insurance Commission (IC) data showed.

The firm also registered a 47% increase in annualized net premiums, ending with P30 billion in gross written premiums last year.

Allianz PNB Life’s premium income stood at P115 million as of end-2021, data from the IC showed. This put the firm at 13^th place in terms of premium income among life insurers last year.

Allianz acquired 51% of PNB Life Insurance, Inc., the life insurance arm of the Tan-led lender, in June 2016. — Keisha B. Ta-asan

Regulators step up supervision over financial firms

November 1, 2022 | 12:03 am

THE Financial Sector Forum (FSF) started working on a second “supervisory college” this month that aims to design a plan for more effective supervision of financial conglomerates.

A supervisory college is a forum that seeks coordination among the country’s financial regulators to better watch over businesses that operate at least two types of financial institutions.

The FSF is composed of the Bangko Sentral ng Pilipinas (BSP), Insurance Commission, Securities and Exchange Commission (SEC), and Philippine Deposit Insurance Corp.

According to the BSP, the second supervisory college is expected to end by January next year.

It added that the members of the supervisory college will “discuss the conglomerate structure, identify emerging risks and issues that pose safety and soundness concerns.”

In a press release posted on the SEC website, the BSP said that the FSF concluded the pilot run of the supervisory college, which started in the second quarter, and with the results presented during the forum’s meeting on Aug. 22.

“The pilot run of the supervisory college enabled the financial sector supervisors to gain a deeper understanding and holistic assessment of the risks to safety and soundness regarding financial conglomerates,” a BSP representative said in a Viber message.

“This exercise reaffirms the commitment of member-agencies of the FSF to strengthen collaboration in promoting financial stability,” the representative added.

Back on Jan. 25, the FSF members signed a memorandum of understanding establishing an interagency, cross-sectoral supervisory college that will facilitate cooperation and coordination among member agencies. — Justine Irish D. Tabile

Prince Harry’s memoir to be published in January, titled Spare

November 1, 2022 | 12:02 am

LONDON — Britain’s Prince Harry’s memoir will be published on Jan. 10 with the title Spare and will tell with “raw unflinching honesty” his journey from “trauma to healing,” publisher Penguin Random House said on Thursday.

The book, which was originally due to be published later this year, will be “full of insight, revelation, self-examination, and hard-won wisdom about the eternal power of love over grief,” the publisher said.

The title refers to Harry’s position as the younger brother of Prince William, who has been heir to the British throne since their father Charles become king last month following the death of Queen Elizabeth II. Until William and his wife Kate had their three children, Harry was next in line to his brother in the order of succession, hence the phrase “the spare to the heir.”

A photo of Harry looking directly into the camera features on the cover, along with the words “Prince Harry” and “Spare.”

Harry and his wife Meghan, who are formally known as the Duke and Duchess of Sussex, stepped down from royal duties in early 2020 and moved to the United States.

The pair sent shockwaves through the British monarchy in a 2021 interview with Oprah Winfrey when Meghan accused an unnamed member of the royal family of having raised concerns about how dark their son’s skin might be and said her life as a royal had left her on the brink of suicide.

Harry has also spoken about being on a “different path” to his brother, although he and his wife appeared with William and Kate after Queen Elizabeth’s death last month.

The book will be published in 15 languages, including Spanish, French and Chinese, while the English-language edition will be available in the UK, Ireland, Australia, New Zealand, India, South Africa, and Canada.

It will be priced at 28 pounds ($32.43) in Britain, the publisher said, and an audio edition, read by the author, will be released.

Harry will support British charities with donations from his proceeds, the publisher said. — Reuters

Christmas comes early at Greenfield District

November 1, 2022 | 12:02 am

GREENFIELD Development Corp. (GDC) recently launched its annual Christmas festivities called “A Christmas for Generations” at Greenfield District, Mandaluyong City.

A 60-foot Christmas tree is now on display at the Greenfield District Central Park.

“After two years of not having face-to-face yuletide celebrations, Filipinos are surely excited to once again gather with their loved ones to celebrate the country’s festive Christmas season,” GDC President and Chairman Jeffrey D.Y. Campos said in a statement.

Filipinos of all ages can enjoy holiday activities at the Greenfield District until Dec. 25. Children can meet Santa Claus on Dec. 17, while adults can shop at weekend bazaars.

“At GDC, we are committed to not only building properties for generations but also creating verdant, spacious neighborhoods where Filipino families can create beautiful memories together throughout the years. Christmas is a special occasion for many Filipinos, and we want Greenfield District to be part of their memorable Christmas experience every year,” said GDC Executive Vice President and General Manager Atty. Duane A.X. Santos.

Most Filipinos use BNPL for small purchases

November 1, 2022 | 12:02 am

MOST FILIPINO consumers use buy now, pay later (BNPL) services for making small purchases, a survey from financial app UnaCash showed.

UnaCash said in a statement that 36% of Filipino BNPL users buy products worth up to P5,000, while 26% said their average purchase amount ranges from P5,001 to P10,000, and 19% answered P10,001 to P20,000.

“An average BNPL purchase is about 42% of respondents’ average monthly income, 14% the most typical. The arithmetic mean size of a BNPL check is P13,500 (median – P7,700, mode – P3,900),” UnaCash said, adding that the declared mean monthly income of respondents is around P32,000.

Meanwhile, BNPL has seen the most demand in durable goods purchases. According to the survey, consumers mainly buy electronics and household appliances (39%).

Filipinos also buy household and interior items (21%), food (15%), medicines and medical services (7%), cosmetics and perfumes (6 %), travel vouchers (5%), and goods for hobbies and entertainment (4%).

“Convenience remains the determining factor, with integrated BNPL services in online stores seeing the most demand as a payment option with installments. 61% of consumers choose to use it in need of extra money. Another 20% borrow from friends/relatives, whilst 14% pay with a credit card,” UnaCash said.

“The amount borrowed in installments is offset by the frequency of purchases, with 48% of respondents using BNPL services at least once a month,” it added. — KBT