Fruitas to use part of one-off Balai gain for Ling Nam deal

July 5, 2022 | 12:06 am

FRUITAS Holdings, Inc. plans to use part of its one-time gain from selling existing shares in subsidiary Balai ni Fruitas, Inc. to fund its latest acquisition, Ling Nam Wanton Parlor and Noodle Factory.

In a disclosure on Monday, Fruitas said the sale of the Balai shares “will result in an increase of its equity.” It added that at the Fruitas level, proceeds “will be deployed into new strategic initiatives, including the acquisition” of Ling Nam.

On June 30, Balai listed 1.49 billion primary and secondary shares, along with 37.5 million option shares at 70 centavos apiece during its initial public offering (IPO).

Fruitas raised around P203.8 million in net primary proceeds for the unit and minimum gross proceeds of P35 million for Fruitas, “with additional proceeds potentially coming after the price stabilization period.”

“The IPO proceeds and the company’s strong cash generation from our operations will allow us to aggressively grow our business,” Balai ni Fruitas, Inc. President and Chief Executive Officer Lester C. Yu said.

Currently, Balai has three active brands, namely: Buko Ni Fruitas, Fruitas House of Desserts, and Balai Pandesal.

Fruitas has aggressively expanded the Balai Pandesal brand from five stores at the time of acquisition to 38 stores as of June 2022. It has opened new stores in different parts of Metro Manila, including a community store in Brgy. Fairview Park, the first Balai Pandesal local bakery in Brgy. Krus na Ligas, and the first Balai Pandesal kiosk in Ayala Malls Cloverleaf.

Balai targets to grow its store network to 130 by 2023, and 200 by 2026.

The company reported revenues of P148.9 million for 2021, a 35% increase from its 2020 revenue of P110.1 million. It recorded a net profit of P8.5 million last year, without disclosing a comparative figure, which it said was driven by the addition of the Balai Pandesal brand and the strong performance of its stores.

For the first quarter of 2022, Balai posted revenues of P60.6 million and a net profit of P6.4 million, which it said were 41% and 75% of expected full-year 2021 levels, respectively.

“This was achieved despite stricter mobility restrictions particularly in January 2022,” it said, adding that the company “expects even faster growth in subsequent quarters.”

Balai started its operations in August 2005 when it opened its first Buko Ni Fruitas kiosk in Robinsons Place Manila serving fresh coconut-based beverages and desserts. Since then, the company has expanded to create and acquire new brands.

Fruitas aims to replicate the organic expansion that it has done for other small acquisitions such as de Original Jamaican Pattie, Sabroso Lechon, and The Tofu Store, which was rebranded into Soy & Bean, and successfully integrate them into the group.

Through the Balai IPO, Fruitas said it “continues its objective to be a ubiquitous food and beverage company with increased penetration and scalability in the market.”

Its latest acquisition target, Ling Nam, was built in the 1950s. The restaurant is known for its Cantonese dishes such as noodles, congee, and other dim sum products.

At the stock exchange, Balai shares were unchanged on Monday at P0.67 apiece. — Justine Irish DP. Tabile

Megawide secures contract to build 1,664 houses in General Trias

July 5, 2022 | 12:05 am

LISTED construction company Megawide Construction Corp. announced on Monday that it secured its eighth contract with housing developer PHirst Park Homes, Inc. (PPHI).

Under the contract, Megwide will build 1,664 housing units using precast materials in PPHI General Trias in Cavite, the company said in an e-mailed statement.

Megawide also built housing units for PPHI Tanza in the same province in 2018.

“The contract will further expand Megawide’s precast order book and strengthen its presence in the horizontal housing segment,” the company said.

“For more efficiency and faster turnover, the company is also set to build an onsite precast molding and concrete batching plant to manufacture precast housing components for the project,” it added.

The company hopes to help address the “perennial housing problem” in the Philippines, Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said.

“Apart from seeing strong long-term prospects in this segment, it also gives us an opportunity to improve the quality of affordable horizontal housing through our value-engineering capabilities and innovative techniques,” he added.

The Philippines’ estimated total housing backlog is 5.7 million for 2011-2016, the company said, citing data from the Housing and Urban Development Coordinating Council.

The country needs to construct 2,600 homes per day in the next six years, it noted.

“With our precast technology, backed by a fully-integrated logistics system, we can turn over more units and help clients realize higher revenue in a shorter time compared with conventional methods,” said Markus Hennig, Megawide executive vice-president for business units.

“We are also encouraging more developers, whether on the affordable or upscale side, to adopt this technology as the standard.” — Arjay L. Balinbin

Star Magic launches US tour

July 5, 2022 | 12:05 am

AS PART of its 30^th anniversary, Star Magic, the talent agency owned by ABS-CBN Corporation, is touring a concert titled Star Magic 30: Beyond the Stars in the United States in August.

In 1992, then Executive Vice-President and General Manager for ABS-CBN Freddie M. Garcia, together with then Program Director Johnny Manahan, established a center that would develop talents exclusively for the network’s programs. Ang TV, an afternoon youth show launched in the same year, was the center’s first project.

In the last three decades, the talent agency, which was renamed Star Magic, has provided workshops in acting, dance, art, script appreciation, styling, and voice production. Star Magic alumni include Angelica Panganiban, John Lloyd Cruz, Kim Chiu, JC De Vera, Jed Madela, Sarah Geronimo, Maja Salvador, and Liza Soberano.

“As mandate of Star Magic, we continue to develop, groom, and train new artists, and bring them to a certain level of excellence, to a level that we are proud of, and to a level of international caliber,” ABS-CBN head of TV production and Star Magic Laurenti M. Dyogi said in an online press conference on June 30.

“We’re honored to be celebrating three shows in the east and the west coast. We’re excited to bring the new breed of talents to the United States and hopefully, to the rest of the world,” Mr. Dyogi said.

Star Magic 30: Beyond the Stars will feature performances by artists including Ms. Chiu, Zanjoe Marudo, Andrea Brillantes, Carlo Aquino, Maymay Entrata, Charlie Dizon, Edward Barber, Donny Pangilinan, Alexa Ilacad, Belle Mariano, KD Estrada, Maris Racal, and Gigi De Lana.

The show schedules are: Aug. 6 at the Kings Theater, Brooklyn, New York; Aug. 12 at the Warfield Theater, San Francisco; and Aug. 14 at the Saban Theatre, Beverly Hills, Los Angeles.

“Kaya tayo magkakasama dito ay para mabuo iyung bonding at iyung pagiging magkapatid sa Star Magic (The reason we are together is to develop our bond and brotherhood/sisterhood in Star Magic),” Mr. Marudo said.

To kick off the tour, a concert titled Beyond the Stars will be held at the Newport Performing Arts center on July 23, 8 p.m.

Tickets are available at mytfc.com/starmagic30. — Michelle Anne P. Soliman

CTS Global to venture into Indonesian market

July 5, 2022 | 12:04 am

CTS Global Equity Group, Inc. plans to expand into the Indonesian stock market with an initial fund disbursement into Bank Central Asia (BCA) Indonesia, it disclosed on Monday.

In a disclosure, the proprietary trading firm said the move is in line with its aim to reach a long-term target of getting more revenues from global trading.

“The long-term goal for CTS is to derive 75% of its revenues from the global markets. We have world-class traders that are more than capable and now that we have capital in our arsenal, it’s time to expand into markets like Indonesia,” said CTS Chief Executive Officer Lawrence C. Lee.

For the first quarter of 2022, up to 43% of total proprietary trading revenues came from global markets.

CTS said the expansion allows it to benefit from the neighboring country’s growth prospects. It said the Indonesia Stock Exchange records an average daily value traded of $1 billion as against the Philippine Stock Exchange’s (PSE) $150 million.

It added that the foreign country’s “commodity-driven nature allowed its stock market to thrive despite the global meltdown.”

The Indonesian market positively received GoTo, the merger between the country’s technology companies Gojek and Tokopedia, as seen by the 23% increase on its first day of trading, it said.

CTS said the positive reception should fuel more technology company listings in the coming years for Indonesia.

CTS debuted in the local stock market on April 13, 2022 at a peso per share, raising P1.38 billion in gross proceeds, which will mainly fund its global trading operations and other purposes.

It is a licensed broker/dealer of securities with the Securities and Exchange Commission and both a stockholder and holder of trading rights of the PSE.

The company’s business segments are proprietary trading, brokerage services, and investment income.

In proprietary trading, it has more than 30 traders with exposure in global markets including the United States, China, Hong Kong, Japan, and the Philippines.

On Tuesday, CTS shares were unchanged at P0.93 each. — Justine Irish DP. Tabile

BTS rekindles debate about military service in South Korea

July 5, 2022 | 12:04 am

bts- performance — SOUTH Korean boy group BTS — TWITTER.COM/BTS_BIGHIT

SEOUL — A surprise decision by South Korean boy band BTS to take a break from live shows has rekindled debate about mandatory military service in a country setting global pop-culture trends while facing a decades old Cold War threat.

Military service is hugely contentious in South Korea where all able-bodied men aged between 18 and 28 are meant to serve for about two years as part of efforts to defend against a hostile North Korea.

Over the years particular categories of men have won exemptions — either allowed to put off service for a certain time or allowed to do shorter service — including men who win a medal at the Olympics or Asian Games and classical musicians and dancers who win a top prize at certain competitions.

Under a 2019 revision of the law, globally recognized K-pop stars were allowed to put off their service until the age of 30.

Parliament is now debating a new amendment that would allow K-pop stars to do just three weeks of military training.

For BTS and in particular for the band’s oldest member, known to fans as Jin, the outcome of the deliberations in parliament will be momentous.

While the band’s management company has long presented the seven BTS members as keen to do their duty, the reality of two years of full-time military service is coming sharply into focus as time ticks by.

Jin, 29, has put off his service for as long as he can and is facing the imminent prospect of a full stint — meaning two years out of the public eye — when he turns 30.

For Jin and his band mates, waiting for parliament to decide has been hugely stressful and is the main reason they are taking a break from performing, said Yoon Sang-hyun, the lawmaker who proposed the amendment to include three-week training for K-pop stars.

“The members cited exhaustion and the need for rest as the main reason but the real reason was Jin’s military service,” Mr. Yoon told Reuters.

The extent to which BTS had raised South Korea’s profile around the world through “soft power” should be taken into account when considering their military service, Mr. Yoon said.

“BTS has done a job that would take more than 1,000 diplomats to do,” he said.

‘HARD TIME’
Since their 2013 debut, BTS have become a worldwide sensation with their upbeat hits and social campaigns aimed at empowering youth.

BTS became the first Asian band to win artist of the year at the American Music Awards last year, and they met US President Joseph R. Biden, Jr., at the White House in May to discuss hate crimes targeting Asians.

Choi Kwang-ho, secretary-general of the Korea Music Content Association, a coalition of K-pop agencies including the band’s Big Hit management company, said the wait for a decision was excruciating.

“The young artists have been tortured with hopes that never come true,” Mr. Choi said.

A Gallup poll in April showed nearly 60% of South Koreans supported the bill exempting globally successful K-pop stars from full military service, with 33% opposed.

The band and their management company have steered clear of the debate but in April Big Hit official Lee Jin-hyung told a news conference in Las Vegas that some band members were having a “hard time” because of “uncertainties” over the parliament debate. He called for a decision.

Jin, asked hours later about Mr. Lee’s comments, said he was letting Big Hit handle the issue though adding that what Lee said reflected his view.

K-pop is not the only sector hoping for a change in the rules. The new administration of President Yoon Suk-yeol is considering exemptions for some engineers and researchers in the computer chip and other tech fields.

The Ministry of Defense pointed to a constitutional requirement for all citizens to do their duty to defend the country.

“Adding pop culture artists in the scope of art and sports personnel who are eligible for the exemption requires careful consideration in terms of fairness,” a ministry official said.

Some young men also wonder about the case for special treatment for BTS.

Seo Chang-jun, 20, said he understood why Olympic winners got an exemption but wasn’t sure about BTS.

“The Olympic Games are national events where all Koreans cheer for the same team but not everyone is a BTS fan. Many people aren’t interested in them,” he told Reuters. — Reuters

Philippines lags in East and Southeast Asia in Coursera’s 2022 Global Skills Ranking

July 5, 2022 | 12:03 am

The Philippines placed last among its East and Southeast Asia peers after placing 70th out of 102 countries in the 2022 edition of online learning platform Coursera’s Global Skills Report, which ranked skills and proﬁciency of learners in the areas of business, technology, and data science. This was lower than the 69th out of 108 countries in the previous edition of the report. The Philippines’ data science proficiency percentile rank dipped to 21% from 44% last year. Its business proﬁciency improved to 62% from 57%, while it steadied at 29% percentile rank in technology proﬁciency.

Gov’t makes full award of T-bills at higher rates on inflation woes

July 5, 2022 | 12:03 am

THE GOVERNMENT fully awarded its offer of Treasury bills (T-bills) on Monday at mostly higher rates on expectations of faster June inflation, which may cause the Bangko Sentral ng Pilipinas (BSP) to be hawkish.

The Bureau of the Treasury (BTr) raised P15 billion as planned from its auction of T-bills on Monday with bids reaching P32.76 billion or more than twice the offered amount.

Broken down, the Treasury made a full P5-billion award of 91-day securities as the tenor attracted P18.67 billion in bids. The average rate of the tenor climbed by 5.3 basis points (bps) to 1.908% from the 1.855% fetched at the previous auction. Accepted rates ranged from 1.725% to 1.95%.

The BTr also raised P5 billion as planned from the 182-day debt papers, with total tenders reaching P6.38 billion. The tenor’s average rate went up by 20.8 bps to 2.608% from the 2.4% fetched for a partial award last week, with the government accepting offers ranging from 2.428% to 2.85%.

Lastly, the government awarded P5 billion in 364-day debt papers as programmed, with bids reaching P7.71 billion. The average rate of the one year-month tenor climbed by 18.1 bps to 2.811% from the 2.63% seen at last week’s auction, with the yields on the awarded bids at the 2.6-2.924% band.

At the secondary market prior to Monday’s auction, the 91-, 182- and 364-day T-bills were quoted at 1.7829%, 2.2109%, and 2.6057%, respectively, based on the PHP Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

National Treasurer Rosalia V. de Leon said in a Viber message to reporters after the auction that T-bill rates rose on Monday as the BSP last week said inflation could have reached an over three-year high in June.

“Rates sustained upward adjustments with inflation forecast from BSP exceeding 6%. The market is seeing the BSP delivering a harder rate punch to quash inflation,” Ms. De Leon said.

Still, she said the higher rates seen on Monday remain aligned with secondary market levels. Ms. De Leon said government bonds have seen a repricing in the secondary market amid higher inflation expectations.

The first trader said the T-bill offer was met with “robust demand as expected as investors reinvest some proceeds from a government bond maturity that was due [on] July 4.”

“It’s refreshing to see a full award… Demand was mainly concentrated on the 91-day Treasury bills as investors chose to park some excess liquidity on the shortest offering while waiting for firm cues on the direction of interest rates,” the first trader said in a Viber message.

A second trader noted that even as Monday’s offer was over twice oversubscribed, yields rose across all tenors.

“Clearly, market is defensive ahead of [Tuesday’s] CPI (consumer price index) data,” the second trader said.

The Philippine Statistics Authority will release its June inflation report on Tuesday, July 5.

A BusinessWorld poll of 16 analysts last week yielded a median estimate of 6% for June headline inflation, within the 5.7-6.5% forecast given by the central bank.

If realized, this would be well above the BSP’s 2-4% target and 5% forecast for the year and would also be faster than the 5.4% print in May and 3.7% in June last year.

This would also be the quickest headline print since the 6.1% seen in November 2018.

BSP Governor Felipe M. Medalla last week said the central bank may consider a more aggressive rate hike at its Aug. 18 meeting if inflation maintains its upward momentum, but noted the decision will remain data dependent.

The BSP Monetary Board on June 23 raised benchmark interest rates by 25 bps for a second straight meeting to help temper rising prices. Inflation pressures have been mounting, with recently approved wage and fare hikes adding to commodity and food prices that have remained high due to supply constraints.

On Tuesday, the BTr will auction off P35 billion in seven-year Treasury bonds (T-bonds) with a remaining life of three years and seven months.

The Treasury wants to raise P200 billion from the domestic market in July, or P60 billion through T-bills and P140 billion via T-bonds.

The government borrows from local and external sources to help fund a budget deficit capped at P1.65 trillion this year, equivalent to 7.6% of gross domestic product. — D.G.C. Robles

SEC clears LFM Properties’ listing on the SME board

July 5, 2022 | 12:03 am

THE Securities and Exchange Commission (SEC) has considered favorably the listing of LFM Properties Corp. on the stock exchange, the corporate regulator said on Monday.

In its meeting on June 28, the commission en banc rendered effective the registration statement of LFM Properties covering up to 10.35 billion common shares

LFM Properties’ parent firm, Liberty Flour Mills (LFM), Inc., plans to distribute 10.35 billion common shares of its unit as property dividends to its stockholders. Shareholders will receive 69 shares of LFM Properties for every Liberty Flour Mills share they hold.

The company will then list by way of introduction 25 billion common shares on the small, medium, and emerging (SME) board of the Philippine Stock Exchange. Its initial listing price for the common shares will be 10.7 centavos each.

Liberty Flour Mills was incorporated on Dec. 26, 1958 to engage in the business of manufacturing flour and flour-related products.

Its products consist mainly of bakery flour products under the brands El Superior, LFM Bakers, Pine Tree, and LFM Soft, which are sold mainly on a wholesale basis principally to members of the baking and food supply industry nationwide.

It currently has two subsidiaries: LFM Properties and Liberty Engineering Corp. LFM Properties is engaged in the business of leasing out office and commercial spaces. Liberty Engineering is engaged in the sale, lease, and purchase of equipment and machinery.

Liberty Flour Mills finished higher on Monday gaining 2.04% or 34 centavos to close at P17 apiece. — Justine Irish DP. Tabile

Maroon 5 returns to Manila in December

July 5, 2022 | 12:03 am

AMERICAN pop rock band Maroon 5 will return to Manila for a concert at the SM Mall of Asia Arena in Pasay City on Dec. 8.

The six-piece band — composed of Adam Levine, Jesse Carmichael, James Valentine, Matt Flynn, PJ Morton, and Sam Farrar — is coming back to the Philippines after three years as part of its 2022 World Tour.

The Asia leg consists of stops in Singapore, South Korea, and Japan before heading to the Philippines and wrapping up in Thailand.

Concert promoter Live Nation Philippines reposted on its official Facebook page the band’s Instagram announcement of the tour.

The band’s last visit to the country was in March 2019 for their Red Pill Blues Tour which was also held in the same venue.

Maroon 5 rose to popularity with the release of their debut album Songs About Jane in 2002 which carried the singles “This Love,” “She Will Be Loved,” and “Sunday Morning.”

Among the band’s accolades are three Grammy Awards, three American Music Awards, and eight Billboard Music Awards.

Their latest album Jordi, released in 2021, featured the singles “Memories, “Nobody’s Love,” “Beautiful Mistakes” featuring Megan Thee Stallion, “Lost,” and “Lovesick.”

Ticket prices have yet to be announced. For updates, visit facebook.com/livenationph. — MAPS

Gilas eyes 2 big men to reinforce the team in Indonesia hoopfest

July 5, 2022 | 12:03 am

gilas_fiba — UNDERMANNED Gilas Pilipinas team — FIBA

Kai Sotto not available according to Chot Reyes

GILAS Pilipinas is eyeing Japan B.League mainstays Thirdy Ravena and Ray Parks and one or two big men to reinforce the youth-laden squad dealing heavily with manpower shortage ahead of its campaign in the coming International Basketball Federation (FIBA) Asia Cup.

Towering Kai Sotto would have been a perfect choice for that gaping hole in the middle, too, but his stint in the July 12-24 hoopfest in Indonesia looks unlikely, per Gilas program director Chot Reyes.

The Nationals embarked on last week’s FIBA World Cup (WC) Asian Qualifiers with a shorthanded crew. They fielded 11 players in a 106-60 loss to New Zealand and then minus Dave Ildefonso (knee), were reduced to 10 men in a 79-63 romp over India at the MOA Arena.

Mr. Ildefonso, like naturalized player Ange Kouame who sustained an ACL injury last month, will surely miss the Asian meet, further depleting the team’s personnel.

“We are hoping to have Thirdy Ravena and Ray Parks in the team,” Gilas coach Nenad Vučinić said.

Gilas Pilipinas’ undersized frontliners led by Geo Chiu, Carl Tamayo and Will Navarro will have to essentially fend for themselves with the NBA hopeful Mr. Sotto not likely to come.

“Mukhang malabo na,” said Mr. Reyes, baring that the team has reached out to Mr. Sotto’s camp but hasn’t received any reply. “He (Mr. Sotto) has decided to do some other things and forgo the FIBA Asia Cup.”

Gilas may have to look at Mr. Reyes’ PBA ballclub, the TnT Tropang Giga, for added muscle inside the paint like Poy Erram or Kelly Williams. TnT’s elimination round assignment in the ongoing PBA Philippine Cup will end on July 10, freeing the potential reinforcements for the Jakarta trip.

Mr. Vučinić’s undermanned team split its two assignments in the WC qualifiers, surrendering to the Tall Blacks in Auckland, 106-60, then rebounding with a 79-63 romp over the Indians at the MOA Arena.

Mr. Reyes said the triumph over India will be a big boost to the youngsters.

“I think that’s very important for the players to get the feeling of the WC,” he said.

“A big positive is to continue sticking with what they’ve been practicing. They ran the same things that they did in New Zealand (in the India game), so it’s important for us to continue seeing progress.” — Olmin Leyba

CLI donates condo buildings for informal settlers in Cebu

July 5, 2022 | 12:03 am

CLI-Tipolo-Residences-perspective-min — Cebu Landmasters, Inc. is building tower 4 of the Tipolo Residences, a mid-rise socialized housing building in Mandaue City. — COMPANY HANDOUT

CEBU Landmasters, Inc. (CLI) said it has donated two medium-rise condo buildings, with a combined value of P215 million, for informal settlers in Cebu City and in Mandaue City.

In a statement, CLI said this donation is part of its commitment to provide quality and sustainable in-city vertical socialized housing.

The company recently turned over the Walk-Up Sugbo 1 to the Cebu City government, and broke ground on Tower 4 of the Mandaue City government’s Tipolo Residences.

Walk-Up Sugbo 1 is located on a 1,350-square meter (sq.m.) property in Barangay Lorega-San Miguel. The P115-million medium-rise building features 100 units that will be home to over 100 beneficiary families, who were previously living in danger areas. Each unit has a floor area of 25 sq.m., which is more than the 18 sq.m. required for socialized housing units.

“To us, this is the most meaningful project. We are now starting a project that will become a model. It will become a standard. We hope this will be emulated not just by us but also by other developers,” CLI Chairman and Chief Executive Officer Jose Soberano III said in a statement.

“We don’t only build homes, we build sustainable communities. And, we want to give decent homes to the marginalized because they deserve nothing less.”

Walk-Up Sugbo 1 is a collaboration between CLI, the Cebu City government and the Department of Human Settlements and Urban Development.

The building features a ground floor chapel, retail spaces for rent, parking area and a livelihood training and multi-purpose hall donated by Cebu Landmasters Foundation. Solar panels will provide electricity for common areas like hallways, stairways and around the property. The building will also have a sewage treatment plant.

Meanwhile, CLI said it will begin construction of the 90-unit Tower 4 of the Tipolo Residences, a mid-rise socialized housing building in Mandaue City. It is expected to be completed in 18 months.

The building will feature 90 units for the victims of the 2019 fire in Tipolo who are temporarily residing inside the Cebu International Convention Center and for informal settlers. Each unit will have a gross floor area of 24.79 sq.m.

CLI said all units are situated to receive a sufficient amount of daylight, reducing energy use. The ground floor units and common area spaces will be lifted to allow cross ventilation, while a large self-watering green wall will be integrated to provide cooling.

BSP looking to require financial institutions to use standard loan application form

July 5, 2022 | 12:02 am

THE BANGKO SENTRAL ng Pilipinas (BSP) is looking to mandate financial institutions to use a standard form for business loan applications of small businesses to streamline the process and make credit more accessible.

A draft circular containing guidelines on the adoption of a standard business loan application form (SBLAF) said these templates are designed to improve the process and make it borrower-friendly for micro, small, and medium enterprises (MSMEs), their target users.

Stakeholders are given until July 15 to submit their feedback on the draft regulation to the BSP.

“The adoption of the SBLAF templates by covered entities supports the MSMEs’ access to financial products and services by facilitating transparency, ease of understanding, and efficiency in loan applications (i.e., reduced turnaround time in processing loan applications),” the central bank said in the proposed guidelines.

“It is also expected to enable the covered entities to improve their risk assessment, hasten turnaround time, and facilitate transition to digital loan application platforms. Moreover, the use of SBLAF among covered entities will likewise support data requirements for improved and consistent credit information services,” it added.

If approved, the new rules will cover BSP-supervised entities offering business loans to MSMEs, namely banks and their subsidiary or affiliate financing and leasing companies, government nonbank financial institutions, stand-alone financing and leasing companies with quasi-banking licenses, and credit granting entities.

Under the proposal, the prescribed templates for loan application will serve as the primary application screening tool to be accomplished by a borrower.

“On a case-to-case basis, covered entities may request additional information and supporting documents commensurate to the borrower’s risk profile in support of sound credit risk management practices and customer due diligence measures,” the central bank said.

There will be two kinds of SBLAF: one for individuals, sole proprietorships, and one person corporations, and another for cooperatives, partnerships, and corporations.

The templates have two components, namely a borrower information sheet and the list of supporting documents. These shall be used for secured or unsecured loan applications of MSMEs seeking financing of business operations and capital expenditures as well as credit accommodations for non-business or personal purposes.

The forms shall be used for new, renewal, and restructuring of covered loan applications.

“The SBLAF templates shall be the sole forms that will be used for covered loan applications. Covered entities are precluded from modifying the templates to preserve the format and minimum information requirements contained therein,” the BSP said.

The central bank said covered entities must ensure the forms are accessible physically or digitally via all channels where borrowers can apply for loans.

Loan applications using the SBLAF will be evaluated and processed using institutions’ approved credit policies and they may refer to their client databases to assess borrowers.

Covered firms will need to submit a quarterly and annual report on their use of the SBLAF to the BSP’s Department of Supervisory Analytics.

The rules, if approved, give covered entities a one-year compliance period, with an additional six months to be given to those that need to make adjustments in the processes and systems to meet the BSP’s new guidelines. — K.B. Ta-asan