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Government set to launch sustainable finance roadmap

THE GOVERNMENT will launch a sustainable finance roadmap on Wednesday to address the country’s policy and regulatory gaps in promoting sustainable investments, the Department of Finance (DoF) said.

The blueprint will address “policy and regulatory gaps in promoting sustainable investments through finance, implementing sustainable government initiatives, facilitating investments in public infrastructure, and developing projects that promote sustainable financing in the Philippines,” the DoF said in a statement on Monday.

Sustainable investors strongly consider both financial returns and environmental and social impact in their decision making.

The interagency technical working group on sustainable finance is composed of the DoF and the Bangko Sentral ng Pilipinas (BSP), in partnership with the British Embassy in Manila.

The roadmap will tackle sustainable financing based on three pillars: policy, financing, and investments. It will be paired with a set of guide principles “that will serve as taxonomy for the sustainable finance ecosystem in the Philippines.”

These principles are aligned with Southeast Asian standards for green bonds, the European Union taxonomy, and other international standards for green finance principles, the DoF said.

“The Roadmap and its Guiding Principles are expected to spur investments from various financing sources to support the country’s Nationally Determined Contribution and long-term priorities,” DoF added.

The blueprint was developed under the United Kingdom (UK) government’s Association of Southeast Asian Nations (ASEAN) Low Carbon Energy Programme (ALCEP).

The low carbon energy program was designed to help ASEAN member countries access UK technical knowledge on green finance and energy efficiency. Through the UK Prosperity Fund, the £15 million in aid backs technical assistance, capacity building, and policy advice in Indonesia, Malaysia, the Philippines, Thailand and Vietnam.

The BSP in July said that there is a need for more sustainable financing in response to concerns about climate change impacts on bank operations.

BSP Governor Benjamin E. Diokno had said that the bank will continue to aim for increasing green bond holdings and will assess climate change vulnerabilities. — Jenina P. Ibañez

AC Energy readies Vietnam battery storage system

50-MW solar farm in Vietnam’s Khanh Hoa province — PHOTO FROM SERAPHIM-ENERGY.COM/

AYALA-LED AC Energy Corp. said its joint venture in Vietnam will be developing a battery energy storage system (BESS) facility that will receive funding from the US Consulate.

In a disclosure on Monday, the listed energy firm said the US Consulate in Ho Chi Minh provided a $2.96-million grant to help the former’s joint venture AMI AC Renewables to develop the pilot utility-scale project.

The energy storage facility, which will have a capacity of 15 megawatt-hours (MWh)/7.5 MW, will be integrated in Ami AC Renewables’ existing 50-MW solar farm in Vietnam’s Khanh Hoa province.

“The project is expected to demonstrate the technical and economic capabilities of the energy storage technology, and showcase how it can help maximize the efficiency and reliability of renewable energy (RE),” the firm said.

Patrice R. Clausse, chief operating officer of AC Energy International who also chairs the AMI AC Renewables board of directors, said energy storage is set to play an important role in the energy transition, and help unlock the potential of renewables.

“We are very excited about the opportunities that lie ahead in harnessing this enabling technology, and together with AMI, we will aim to secure Vietnam’s renewable energy sources while helping the country achieve its sustainability goals,” he said.

Chargé d’Affaires ad interim Marie C. Damour said the US Consulate is pleased to support Vietnam’s efforts to strengthen its RE power generation and lessen its dependence on coal.

“This project aims to show how cutting-edge US energy storage technology can advance these goals, and catalyze Vietnam’s transition to a clean energy economy for a climate-resilient future,” AC Energy quoted the official as saying.

AMI AC Renewables is a joint venture of AC Energy and Vietnamese RE platform AMI Renewables. AMI AC Renewables operates solar facilities with a total capacity of 80 MW-peak in Khanh Hoa and Dak Lak provinces.

AMI AC Renewables is targeting to develop a renewables pipeline of 2,000 MW.

Back home, AC Energy aspires to reach a renewables capacity of 5,000 MW by 2025 as it hopes to become Southeast Asia’s largest listed RE platform.

The Ayala group’s energy platform currently has six power projects in Vietnam, with some under construction.

AC Energy shares at the local bourse shed around 4.59% or 52 centavos to finish at P10.80 apiece on Monday. — Angelica Y. Yang

FEU, CEU report quarterly losses

LISTED educational institutions reported losses for their first quarter ending in August this year with Far Eastern University, Inc. (FEU) trimming its attributable net loss to P40.35 million, while Centro Escolar University (CEU) swung to a loss of P80.89 million.

Both institutions have a fiscal year ending in May.

“The group’s first-quarter results translated to a significant improvement compared to the previous year, still reporting, however a net loss,” FEU said.

FEU narrowed its net loss attributable to owners of the parent company by 73% during the first three months of its fiscal year, finishing with P40.35 million from P148.8 million year on year. It said the first quarter of each school year is “generally expected to report a net loss due to timing of revenue recognition” once classes begin.

FEU’s topline went up by 43% to P407.64 million from P284.64 million. Its operating expenses inched up by 14% to P502.09 million from P439.21 million in the same period last year.

The university said it expects to have a “sound financial position and a more stabilized operating results” after opening the school year with around 44,000 students group-wide, which is more than its usual enrollees pre-pandemic.

“The group looks forward to [the] resumption of face-to-face classes because of the government’s more intensified vaccination program and its efforts to slowly open the economy,” said FEU, adding that it “remains conservative” with its outlook on the financial market and the economy.

CEU, on the other hand, recorded a net loss of P80.89 million for its first quarter this year. Its bottom line is a turnaround from the P52.77-million profit logged in the same period last year.

Revenues of CEU decreased to P237.27 million, which is 9% less than last year’s P261.65 million. Its expenses surged by 52% to P318.16 million from P208.88 million.

“For school year 2021 to 2022, CEU approved the improvements of internet connection. It also approved the improvements of rooms, classroom and various laboratories to [conform] with the safety requirements of government agencies in preparation for face-to-face classes,” CEU said.

On Monday, shares of FEU at the stock exchange went down by 4.31% or P25 to close at P555 apiece. CEU shares were last traded on Oct. 4 for P6.69 each. — Keren Concepcion G. Valmonte

Robinsons expands with new 4-star hotel in GenSan

GRAND SUMMIT HOTEL, a new four-star hotel in General Santos City, opened on Oct. 15. — COMPANY HANDOUT

ROBINSONS HOTELS and Resorts last week opened its first four-star hotel in General Santos City.

In a statement, the hospitality arm of Robinsons Land Corp. said the Grand Summit Hotel, which is a homegrown brand, will have 102 deluxe rooms and suites, restaurants and amenities.

“We, at Robinsons Hotels and Resorts, remain steadfast in our vision of extending our brand of hospitality and service all throughout the country and beyond. Ours is a vision built on a tradition of solidarity and perseverance, and this is what the Grand Summit stands for — a brand that can withstand the weathers of the highs and lows of economies — always at the forefront of what hotel service ought to be,” Arthur D. Gindap, senior vice-president and business unit general manager of Robinsons Hotels and Resorts said.

The pool and suite facilities will be opened by December, while the hotel’s spa and fitness center along with its ballroom are slated to open by the second quarter of 2022.

The Grand Summit Ballroom can fit 500 banquet guests and up to 700 guests with a “theater set-up.”

The hotel also has function rooms that can accommodate up to 30 guests, which may be used for business meetings, exhibits, training and seminars, and other social gatherings. It also has its own all-day dining restaurant, Café Summit.

“This is not a mere hotel opening for us and the residents of General Santos, but a testament of the wonderful things to expect in the coming days here in our beloved city,” Annalyn Yap, group general manager of Summit and Go Hotels, said.

Grand Summit Hotel General Santos also complies with the Circle of Clean protocol, which is modeled after the World Health Organization’s hygiene and cleanliness standards and Health department protocol.

The hotel is offering an introductory promo of P3,988 a night per room until year-end. — Keren Concepcion G. Valmonte

Basic Energy plans to acquire 60% ownership in Filoil

BASIC Energy Corp. said on Monday that its board of directors had given the go signal to acquire up to a 60% ownership in local oil company Filoil Energy Co., Inc. through an equity investment.

“After further presentation… the members of the Board of Directors resolved to approve the proposed equity investment in Filoil Energy and acquire interest therein of up to 60%,” the listed holdings firm said in a regulatory filing.

The company said eight of its directors voted in favor of the planned investment, with two officials abstaining since they have direct and indirect interests in Filoil Energy.

The move to invest in the oil firm earlier received the green light from the firm’s risk and related party transactions committees.

BusinessWorld has reached out to Basic Energy for more details on the planned investment, but the firm has yet to reply as of deadline time.

Last month, the corporate regulator approved the doubling of Basic Energy’s authorized capital stock to P5 billion from P2.5 billion previously. The firm asked for a higher capital stock “to raise funds for energy projects and expand its existing business operations.”

In May, the de Venecia-led company secured from the Energy department a service contract for a planned 50-megawatt wind project in Mabini, Batangas.

The wind energy service contract calls for a non-extendible, five-year, pre-development phase and a 25-year development stage, counted from contract signing.

Basic Energy also holds service contracts for the exploration and development of geothermal energy in Batangas, Bataan, Benguet, Camarines Sur, and Sorsogon.

Basic Energy shares at the local bourse improved 5.26% or three centavos to finish at P0.60 apiece on Monday. — Angelica Y. Yang

After a hard year, a house bill targets helping the creative industry

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IT HAS been over a year since audiences have been able to laugh and cry in a movie theater, or sing along with their favorite band in a concert. While the creative sector in the country has managed to transfer activities and events online, it still cannot operate as vigorously as before.

When most of the creative sector stopped operations last year, the indefinite lockdowns led to job losses amongst creative freelancers and workers, artists, and performers.

The National Live Events Coalition PH, a movement of professionals and organizations from the live and social events industry reported a revenue loss of more than P133 billion, affecting more than 400,000 jobs.

According to ilostmygig.ph, a website that collects data on the impact of the COVID-19 pandemic on the country’s arts, culture, independent businesses, and creative industries, its survey recorded a total loss of income of more than P268 million, impacting 4,458 professionals during the strict lockdowns in 2020.

HB10107
This is the situation that backgrounds House Bill (HB) 10107 or the Philippine Creative Industries Development Act, a measure aimed at supporting the creative sector. It was submitted by the House Committees on the Creative Industry and Performing Arts, Appropriations, and Ways and Means on Aug. 30 this year, substituting for House Bill Nos. 4692, 6476, and 8101.

It was passed on the second reading on Sept. 13 and approved for third and final reading on Sept. 20.

The measure seeks to promote and develop creative industries, and allocated funding for them. It also aims to protect and strengthen the rights of, and cultivate economic activity of, creative firms and individuals, works and creative industry stakeholders as well as indigenous cultural communities.

“Creative successes of Filipinos, to date, have almost always been hinged on the artists’ own individual efforts, i.e., with very little to no government support which is why we believe that Filipino creatives, while already competitive, have yet to harness the full potential of their creativity,” Pangasinan 4th District Rep. Christopher “Toff” de Venecia said in an e-mail to BusinessWorld. He is the House Committee on Creative Industry and Performing Arts Chairperson.

Mr. De Venecia added that among creative stakeholders’ concerns that were considered in drafting the measure include the absence of a “singular government agency that caters to their needs,” the “lack of a legal definition of the creative sector” which led to difficulties for creative professionals in identifying which sector they belong to when applying for bank loans, registering with the Bureau of Internal Revenue, or obtaining health insurance.

One of the major points of the bill is the creation of the Philippine Creative Industry Development Council which will be attached to the Department of Trade and Industry (DTI). The Council will be composed of 17 members — nine regular members from the private sector who will represent each creative industry domain, and eight ex officio members from government agencies.

“Although we are seeing great developments in this area, there are still gaps between how private sector leaders approach issues relating to the creative industries versus how government officials treat the same. There needs to be a mindset shift about how the government views the creative economy, and we believe that this can start to happen if we put representatives from the government on the same decision-making table as the private sector,” said Mr. De Venecia.

The Philippine Creative Industry Development Council will be a Creative Workers’ Welfare Committee. The bill also makes provisions for a Creative Educational Plan, and The Creative Industry Development Fund for research.

CONCERNS
While the House Bill promotes the development of the creative industry, the organization Concerned Artists of the Philippines (CAP) has expressed concerns on how the bill defines provisions on creatives labor welfare, support for MSMEs, educational support, and grassroots participation.

“Any industry in society cannot be healthy or sustainable if its workers are underpaid, overworked, working in unsafe conditions, have little access to health care and insurance, or fear to exercise their political and civil rights for self-organization. This definitely applies to the creative industry too,” said Lisa Ito, University of the Philippines-Diliman College of Fine Arts faculty member and CAP Secretary-General, in an e-mail to BusinessWorld.

“Any industry is ultimately built on the backs and labor of workers. Any effort therefore to develop the industry will have to address these questions of how it will change and improve the lives of people on the ground who comprise the labor of the creative industries,” Ms. Ito added.

After conducting study groups and consultations with their network, CAP wrote a position paper and addressed its concerns directly to Rep. Sarah Elago of the youth sectoral partylist Kabataan Partylist and the rest of the Makabayan bloc in Congress, and to the office of Mr. De Venecia.

“Both the proponent and the Makabayan bloc representatives made an effort to listen to our position and address what could be revised at that point in the bill’s progress in the House. Of course, these are still not enough to fully address the concerns raised in the paper, but it is a start,” Ms. Ito said.

Ms. Ito commented that the creation of a Creative Workers’ Welfare Committee is “a positive development” and suggested that the Committee “provide support and foster a climate conducive for the growth of creative organizations.

“The committee should be open to consultations, proactively initiate programs to study and improve welfare and uphold socio-economic and political rights, and not allow violations such as the red-tagging of individual artists and cultural organizations, especially community-based formations, to happen,” she said.

CURRENT STATUS AND OUTLOOK
If the Bill is passed into law, one of its long-term goals is to establish the Philippines as the leading creative economy in ASEAN by 2030.

“I think that we can properly plan and lay the foundation for this creative future, and this shall be one of the primary tasks of the Council,” Mr. De Venecia said, admitting that it is a “lofty goal.”

“A Creative Industries Development Plan shall be created, which shall contain targets as to value creation, contribution to GDP (gross domestic product), jobs created, intellectual property targets, market creation and expansion (whether domestic or international), and investment targets,” said Mr. De Venecia. “It follows that these predetermined targets will influence how government programs for the creative industries will be streamlined.

“While targets can be adjusted along the way, the point is that we cannot really get to a goal without planning for it ahead of time. We cannot grow what we don’t know.”

Ms. Ito stressed the importance asking, “For whom is development for?”

“The experience of growth in other countries and investment in the Philippine landscape, throughout history, has taught us that profit does not necessarily equate to progress, or development for the people,” Ms. Ito said.

“We must not forget that our creative industries can shape our country’s history and change the lives of communities for better or for worse, so let us always be vigilant towards the ends and means of development,” she added.

The committee is hopeful that the Senate will approve the House Bill before the year ends.

If the measure is approved, Mr. De Venecia explained, “There will have to be bicameral committee meetings where the versions of the lower house and the senate will be reconciled if there will be conflicting or differing provisions.” After which, it will be submitted to the President for his signature and approval.

“We are confident that the [HB10107] will become law before the next set of officials are elected,” he said. — Michelle Anne P. Soliman

PDO launches township project in Batangas

PUEBLO DE ORO Development Corp. is developing a 42-hectare township in Malvar, Batangas. — COMPANY HANDOUT

THE PROPERTY development arm of the ICCP Group launched a 42-hectare township project in Malvar, Batangas.

In a statement, Pueblo de Oro Development Corp. (PDO) said Townscapes Malvar will complete the ICCP Group’s 212-hectare “live-work” community development in Batangas.

The project will be composed of exclusive residential subdivisions, five hectares of commercial area and an educational hub. The masterplan was done by architectural firm Pomeroy Studios, whose works include the Kallang Alive in Singapore and BSD Digital Hub in Indonesia.

PDO said Townscapes Malvar is adjacent to a 170-hectare industrial park for light manufacturing that is being developed by Science Park of the Philippines, Inc. (SPPI). SPPI is also a member of the ICCP Group.

“The goal of Pueblo de Oro is to create a landmark in the heart of Batangas, with a vibrant and green mixed-used township inspired by Southern Luzon’s urban charm,” PDO President and Chief Operating Officer Prim Nolido was quoted as saying in a statement.

Townscapes Malvar is accessible via the Southern Tagalog Arterial Road (STAR), just few minutes from Malvar Exit.

“Malvar, Batangas is also an ideal location because of its proximity to the Batangas International Port, which has attracted manufacturing and industrial companies to locate in the province, thereby providing employment opportunities,” Mr. Nolido said.

He noted areas south of Metro Manila have benefitted from the increasing number of families relocating from the capital during the pandemic.

PDO will develop the 15-hectare Pueblo de Oro Residences and 12-hectare Pueblo de Oro Townhomes within Townscapes Malvar. — Cathy Rose A. Garcia

Maynilad warns of water interruptions due to gov’t flood control project

CONSUMERS being served by Maynilad Water Services, Inc. are set to experience water interruptions later this month due to a flood control project of the government, the west zone concessionaire said on Monday.

Ronaldo C. Padua, Maynilad water supply operations head, said in a virtual briefing that the water interruption will range from 25 to 85 hours and will begin on Oct. 25 (11 a.m.) up to Oct. 28 (11:59 p.m.).

Affected customers will be those situated in parts of Las Piñas, Makati, Manila, Parañaque, Pasay, as well as parts of Cavite province such as Bacoor, Cavite City, Imus City, Kawit, Noveleta, and Rosario.

“Around 28% or 421,000 water service connections (WSC) of Maynilad’s total 1.5 million WSCs will be affected. This involves about 2.9 million customers. Of these, some 60,000 WSCs or around 420,000 customers in Sampaloc, Manila will have no water for three consecutive days,” he added.

Mr. Padua said the interruptions will be caused by the realignment of Maynilad’s existing pipeline along Sobriedad corner Cristobal St. in Sampaloc to give way for the government’s flood control project.

The project under the Department of Public Works and Highways (DPWH) involves the installation of a drainage line along Cristobal St. It aims to address flooding issues in Manila. “The affected pipeline will be cut and will be replaced with a cross-under pipe to allow the drainage line to be installed by the DPWH. Due to the massive size of the affected water pipeline, which is seven feet in diameter, its realignment will take almost four days or 85 hours,” Mr. Padua said.

Further, Mr. Padua said the water concessionaire will conduct other activities such as leak repairs and maintenance works in several pumping stations while the service interruption caused by the pipe realignment is ongoing.

Maynilad will deploy 60 mobile water tankers and install 14 stationary water tanks to serve customers in areas that will experience three straight days of interrupted water service.

It added that local government units and local fire bureaus were tapped to augment the number of water tankers that can deliver water to affected areas.

Maynilad also urged its customers to store enough water for the duration of the water service interruption to reduce inconvenience.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

Salient points of HB 10107

HOUSE Bill 10107, or the Philippine Creative Industries Development Act, defines creative industries as “trades involving persons, whether natural or juridical, that produce cultural, artistic, and innovative goods, products, and services, where such goods and services originate in individual creativity, skill, and talent and have a potential to create wealth and livelihood through the generation and utilization of intellectual property.”

It also defined the creative industry domains as the following: audiovisual media, digital interactive media, creative services, design, publishing, and printed media, performing arts, visual arts, traditional cultural expressions, and cultural sites.

Section 3 of the measure mandates the creation of the Philippine Creative Industry Development Council which will be attached to the Department of Trade and Industry (DTI). The Council will be composed of 17 members: nine regular members from the private sector who will represent each creative industry domain, and eight ex officio members from government agencies — the Departments of Education (DepEd), Science and Technology, Tourism, Information and Communications Technology, and of Trade and Industry; the National Commission for Culture and the Arts (NCCA), Intellectual Property Office of the Philippines, and Commission on Higher Education (CHED).

The nine private sector representatives must be nominated by private sector groups to the Department of Trade and Industry (DTI) through valid endorsement letters signed or attested to by the group’s members and/or officers. The DTI will then create a shortlist from which the President of the Philippines will appoint the private sector representatives in the Council.

The obligations of the Council include defining each creative industry’s economic goals and performance monitoring, and maintaining a database about the sector.

Among its functions, the private sector representatives shall oversee the promotion, distribution, and export of the creatives’ outputs, protection of their intellectual property, endorsement to the DTI of prospective multi- and bi-lateral international trade agreements, and the issuance of guidelines and criteria in identifying the persons and stakeholders for aid from the State in times of national emergency.

Under Sec. 5, the creation of a Creative Workers’ Welfare Committee which is a standing committee attached to the Council which “shall ensure that creative freelancers and creative workers have access to sustainable and dignified livelihood in the creative industries.”

“The Creative Industries in the bill are defined broadly enough to cover all workers and freelancers in the sector. Thus, all the programs institutionalized in the bill are envisioned to benefit them as well,” the bill’s backer, Pangasinan 4th District Rep. Christopher “Toff” de Venecia, said in an e-mail to BusinessWorld.

“It should be noted though that most of the programs in the bill are reserved for members of business support organizations and/or creative workers associations. This means that freelancers and workers must belong to at least one creative organization to receive the proposed benefits and incentives,” he explained. “This was an intentional principle behind the bill since the authors believe that creative stakeholders must band together in groups for purposes of representation, mutual aid, and enjoying other forms of support.”

Meanwhile, Sec. 18 states the establishment of a Creative Educational Plan by the National Government Agencies such as the DepEd, CHED, and Technical Education and Skills Development Authority (TESDA) for education, scholarships, and technical skill development programs in the arts and creative sectors.

Through the House Bill’s The Creative Industry Development Fund, Special Account in the General Fund with the National Treasury shall be established. Referred to as the Fund, it is for the purpose of for research and development, marketing and trade promotion, human resource development, programs for the welfare of artists, workers and other stakeholders through accredited business support organizations and creative workers associations.

An appropriation of P5 billion in the House Bill’s earlier drafts was removed and its budget will be allotted in accordance with the annual General Appropriations Act to ensure that the programs in the measure have a legal basis for funding.

“As an attached office to the DTI, the Council will be given its chance to propose its annual budget to the Department of Budget and Management (DBM) for inclusion in the National Expenditure Program, and then to lobby to Congress during budget deliberations,” Mr. De Venecia said. — MAPS

SMDC plans to unveil 5 more projects before end-2021

SM Development Corporation President Jose Mari Banzon

SM DEVELOPMENT Corp. (SMDC) is expected to launch five new developments by the end of the year, as it bets on strong demand from young workforce and overseas Filipino workers (OFWs).

In a statement, SMDC President Jose Mari Banzon said there will be “no letup” in the company’s commitment to invest heavily in projects that address the needs of the market.

Despite the pandemic, he noted the real estate industry’s growth will continue to be driven by the current housing shortage and demand from young workers and OFWs.

“SMDC developed residential features designed to meet the multi-faceted needs of young Filipinos. The residential designs of our developments include powerful connectivity, shared working spaces, accommodating towards ride-sharing services and many features geared towards wellness, safety, and security — hallmark features of any modern living space,” he said.

Since the pandemic began last year, SMDC has launched ten projects located in central business districts such as Makati and the Mall of Asia (MOA) complex, and in growth centers around the country. These include a residential-office development known as ICE Tower, and SMDC JOY Residences, a garden community with four-floor residential buildings.

SMDC, which accounts for 60% of listed SM Prime Holdings, Inc.’s consolidated revenues, saw an 8% improvement in its operating income to P10.4 billion in the first half of 2021 from P9.7 billion a year ago.

Six-month revenues for SMDC jumped by three percent to P24.55 billion, as net reservation sales rose by 30% to P55.1 billion.

“Construction works on SM Prime’s new and latest residential projects remain ongoing while following safety protocols implemented by the National Government,” the listed company said in an August statement.

Gov’t makes full award of T-bills

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THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday as rates moved sideways after the country’s central bank chief said the regulator is unlikely to hike borrowing costs anytime soon.

The Bureau of the Treasury (BTr) raised P15 billion as planned via the T-bills it auctioned off on Monday as total tenders reached P36.088 billion, more than double the initial offer but lower than the P46.594 billion in bids logged in the previous auction.

Broken down, the BTr raised P5 billion as planned via the 91-day debt papers from P8.68 billion in bids. The three-month T-bills fetched an average rate of 1.113%, up by 1.8 basis points (bps) from the 1.095% seen at last week’s offering.

The BTr also borrowed P5 billion as programmed from the 182-day T-bills as the tenor attracted tenders worth P16.868 billion. The average yield of the six-month instruments slipped 0.1 bp to 1.39% from 1.391% a week ago.

Lastly, the government made a full P5-billion award of the 364-day securities it offered on Monday as bids reached P10.54 billion. The average rate of the one-year T-bills stood at 1.604%, up by 1.7 bps from the 1.587% fetched last week.

It also opened its tap facility to raise an additional P3 billion via the one-year instruments.

National Treasurer Rosalia V. de Leon said in a Viber message to reporters after the auction that T-bill rates moved sideways after Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said over the weekend that raising rates “too early” would harm economic recovery.

On Monday, Mr. Diokno said in an interview with ANC that “there will be no policy adjustments between now and end of year.” The BSP has two meetings left this year.

Mr. Diokno added that the elevated inflation seen in recent months is transitory and is because of low supply.

Headline inflation stood at 4.8% in September, easing from the 4.9% recorded in August. For the first nine months, inflation averaged at 4.5%.

A trader added that T-bill yields were mixed on Monday due to Mr. Diokno’s comments about inflation.

“Mr. Diokno is clearly on the transitory side in terms of inflation, and he believes that inflation will remain manageable in the medium term,” the trader said.

“In fact, BSP expects inflation to be at midpoint of their 2% to 4% target in 2022 and 2023. That said, I think that gives them some room to keep their policy rates steady at least until this year to support the country’s fragile economic growth,” the trader added.

The BSP expects inflation to return to the 2-4% range and average at 3.3% and 3.2% in 2022 and 2023.

Meanwhile, a second trader said in a Viber message that T-bill rates moved sideways on the back of sustained demand as investors prefer to park their funds in short-term papers.

On Tuesday, the BTr will offer P35 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of five years and six months.

The BTr is looking to raise P200 billion from the local market this month: P60 billion from weekly offers of T-bills and P140 billion from weekly auctions of T-bonds.

The government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. — Jenina P. Ibañez

2GO offers perks to vaccinated passengers

FACEBOOK.COM/2GOTRAVEL

TO BOOST domestic tourism, 2GO Group, Inc.’s 2GO Travel is offering a “free room upgrade” to fully vaccinated individuals.

2GO Travel, the group’s brand for its passage business, said in an advisory posted on its official Facebook page that it is offering “room upgrade promo” to all fully vaccinated passengers who will book and travel with the company.

“[2GO believes] that the key to local tourism recovery is for us to achieve herd immunity by getting vaccinated,” 2GO Travel said.

“We want to reward you for it,” it added.

Despite the pandemic crisis, 2GO Travel said it continues to connect Manila to all the major ports in Visayas and Mindanao.

2GO Group is also engaged in the cargo business through its brand 2GO Freight.

The listed company’s freight revenue for the first half of the year hit P1.58 billion, up 15.3% from P1.37 billion in the same period a year ago.

Meanwhile, travel revenue dropped 68.6% to P221.84 million from P706.50 million in the same period last year.

“Given the restricted mobility in and out of the country and the curtailed economic activities affecting demand not only in the Philippines but in other countries, 2GO experienced a decline and gradual recovery in sales/revenue volumes as aforementioned quarantine measures were slowly relaxed,” 2GO said in its second-quarter report. — Arjay L. Balinbin