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Suntrust and Summit Ascent unit ink deal on bond subscription

SUNTRUST Home Developers, Inc. said it inked an agreement in which a unit of a Hong Kong-listed holding firm will subscribe to the locally listed property developer’s convertible bonds.

It told the stock exchange on Tuesday that the subscription deal was entered into with Summit Ascent Investments Ltd., or SA Investments, on Sept. 20, subject to the completion of conditions under the agreement.

Suntrust Home Developers will issue the bonds, while SA Investments will conditionally subscribe to the bonds equivalent to the former’s loan indebtedness.

In February this year, Suntrust Home Developers and SA Investments entered into a loan agreement where the developer borrowed a principal amount of $120 million.

The loan indebtedness will include up to P6.4 billion due under the loan agreement, including the other debt owed by Suntrust under the loan agreement on its maturity date.

According to SA Investments’ parent company Summit Ascent Holdings Ltd., Suntrust Home Developers owes SA Investments around $122.5 million, which already includes accrued interest.

Summit Ascent and Suntrust Home Developers have common shareholders that own some 10% of both entities.

Suntrust Home Developers is awaiting regulatory approval for the transaction.

On Tuesday, its shares at the local bourse went up by 2.65% or four centavos to close at P1.55 each. — Keren Concepcion G. Valmonte

Senate clears on second reading water franchise bills

PHILSTAR

THE SENATE has approved on second reading measures seeking to grant a 25-year franchise for water concessionaires Manila Water Co., Inc. and Maynilad Water Services, Inc.

It amended House Bill No. 9422 that allows Maynilad to continue operating in the west zone of Metro Manila including Cavite province, and House Bill No. 9423 for Manila Water in the east zone including Rizal province.

The measures allow the concessionaires to establish, operate and maintain a waterworks system, and sewerage and sanitation services in their franchise areas, including the right to bill and collect fees from consumers.

Under the proposed laws, the corporate income tax can no longer be charged to consumers.

Majority Leader Juan Miguel F. Zubiri asked to restore the right of eminent domain, which was accepted by Senator Mary Grace Natividad S. Poe-Llamanzares, the primary sponsor of both bills, because it would expedite certain projects while minimizing the bureaucratic process.

Senate President Pro Tempore Ralph G. Recto made an amendment that when public interest for affordable water security so requires and upon application of the grantee, state-led Metropolitan Waterworks and Sewerage System is authorized to approve the amendment of the concession agreement to extend its term up to the term of the franchise after the appropriate notice and hearing.

A change was accepted to reconcile a conflict in the date due to the concession agreement ending earlier than the actual franchise, said Ms. Poe-Llamanzares.

The Senate Committee on Public Services earlier looked into the possible synchronization of the expiry dates of the two water concessionaires’ revised concession agreements ending in 2037, and their proposed franchise extensions, which will end in 2046.

Amendments were also made to include timelines and a period of evaluation to ensure the concessionaires will comply with their commitments.

The bills allow the grantees to charge reasonable and just fees for their services to all types of consumers and water users within their franchise areas.

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 interest in BusinessWorld through the Philippine Star Group, which it controls. — Alyssa Nicole O. Tan

PBSP launches zero hunger initiative to complement gov’t efforts

PHILSTAR

BUSINESS-LED non-governmental organization Philippine Business for Social Progress (PBSP) recently launched The Hunger Project (THP), an initiative within the business sector to end hunger and malnutrition by 2030, following the United Nations’ (UN) Sustainable Development Goals.  

“Malnutrition is our common enemy. It persists in multiple forms and, with the full impact of the COVID-19 [coronavirus disease 2019] pandemic still unfolding, it’s a barrier to building resilience,” said Ellen Ruth F. Abella, nutrition officer of the National Nutrition Council (NNC).  

Studies have shown that focusing on feeding children in the first 1,000 days of their life will be most effective in improving nutritional development, she added.  

This approach is used by THP, which supports various initiatives in the National Capital Region, Samar, Negros Occidental, Zamboanga Del Norte, Basilan, and Sarangani, specifically in areas not sufficiently covered by other zero hunger programs.   

Food security data released by the Food and Nutrition Research Institute showed a rise in food insecure households in 2020, with 62.1% of families surveyed saying they experienced moderate to severe food insecurity, up 21.9% from 2019.  

“This is correlated with the level of quarantine. The stricter it is in that area, the more food insecure the households are,” said Dr. Roehlano M. Briones, board member of Brain Trust, Inc. 

NNC’s Ms. Abella lauded THP’s objective of encouraging the business sector to support NNC’s Philippine Plan of Action for Nutrition, calling on more partnerships in adopting LGUs (local government units) and scaling up their programs in various locations.  

“We aim to reach graphically isolated and disadvantaged areas, indigenous peoples, and the urban poor,” she said.  

PBSP Executive Director Elvin Ivan Y. Uy cited the UN, World Health Organization, and World Bank’s Joint Child Malnutrition Estimates for 2021, which said that the world is not on track for the goal of zero hunger by 2030, with the coronavirus worsening the situation. He also mentioned the latest Social Weather Stations survey that found around 4.2 million Filipinos went hungry in 2020.  

“The end hunger fund that will be generated by THP and its growing alliance of various companies will be used to support the programs of local governments,” he said.  

Other projects with the same goal include the government’s Task Force Zero Hunger (which identified 32 priority provinces based on indicators like poverty, teenage pregnancy, and malnutrition levels) and multisectoral effort Pilipinas Kontra Gutom (PKG), which added 17 provinces to the list. THP, according to Mr. Uy, complements both.  

“Much of 2020, we were trying to understand the directions and plans of the task force, of PKG, and of the entire ecosystem,” he said. “THP is a separate identity but we still work with them. We are, in fact, involved in all of those things.” — Brontë H. Lacsamana

Pianist Beisembayev wins Leeds competition

The Waterman Gold Medal, ALIM BEISEMBAYEV — PHOTO FROM LEEDSPIANO.COM

LONDON —  Kazakhstan-born pianist Alim Beisembayev began his musical career when he picked a miniature toy piano for his fifth birthday present. Now aged 23, he has scooped the career-making Leeds International Piano Competition, beating four other finalists.

“I’m still coming down from cloud nine… it really is a wonderful feeling,” Mr. Beisembayev told Reuters on Monday. “I’m so, so, so happy, but (it was) also unexpected. I’m looking forward to what will come next.”

Held every three years, The Leeds had to change its process this time due to the coronavirus disease 2019 (COVID-19) pandemic. It held a virtual first round in April with no live jury or audience and competitors performing in different locations in front of a camera.

The final rounds were held in Leeds, northern England, and on Friday Mr. Beisembayev performed Sergei Rachmaninov’s Rhapsody on a Theme of Paganini, Op. 43 along with the Royal Liverpool Philharmonic Orchestra in front of a live audience.

“The final was just unforgettable and will probably stay with me for the rest of my life because of just playing for an audience,” he said.

Mr. Beisembayev, who has most recently been studying for a master’s degree at the Royal College of Music in London, is the first pianist from Kazakhstan to win The Leeds.

As winner, he gets the competition’s Waterman Gold Medal, a 25,000 pounds ($34,120) cash prize as well as a package including a management deal, a recording contract and a European tour.

Mr. Beisembayev also scooped the audience prize, which is voted for by the public, and the Royal Liverpool Philharmonic Society Prize for performance of a 20th/21st century work. — Reuters

BTS sings their way through United Nations

BTS danced its way through the United Nations — SCREENSHOT FROM YOUTUBE.COM/UNITEDNATIONS

UNITED NATIONS —  Fully vaccinated South Korean band BTS danced its way through the United Nations in a Monday broadcast, promoting global goals tackling poverty, inequality, injustice and climate change ahead of the annual UN gathering of world leaders.

The seven-member group filmed a music video to its song “Permission to Dance” in the world body’s New York headquarters over the weekend, dancing through the General Assembly Hall and out into the gardens. It was broadcast during an event on the Sustainable Development Goals.

BTS — whose members declared they were all fully vaccinated against COVID-19 (coronavirus disease 2019) — also appeared in person at the event in the General Assembly, introduced by South Korean President Moon Jae-in. They are the UN’s Special Presidential Envoys for Future Generations and Culture. — Reuters

EEI unit to provide power to Centro Mall, Limcoma

THE electricity arm of EEI Corp. has recently forged retail electricity supply (RES) deals with the Laguna-based Centro Mall and animal feed manufacturer Limcoma Multi-purpose Cooperative, the listed construction firm said in a disclosure on Tuesday.

The establishments are among the first accounts which EEI Energy Solutions Corp. was able to close within six months after the firm received its RES license from the Energy Regulatory Commission.

Both facilities are said to require over 500 kilowatts of power supply each. To date, EEI Energy’s total contracted capacity stands at around 3.5 megawatts.

“These accounts will definitely be the first of many customers we will serve with our unique offerings. While we look forward to a lasting and sustainable business relationship with our customers, we are aggressively working on providing the same, if not more, level of service to other contestable customers across the Luzon and Visayas market” EEI Energy’s Operations Manager Valia Quinajon said.

EEI Energy is a wholly owned unit of EEI Power Corp., which is fully owned by listed construction firm EEI Corp.

In the same regulatory filing, EEI Corp. said EEI Energy is scaling up its presence in “untapped market segments” such as areas in the Visayas, and North and South Luzon while leveraging the business relationship between its parent firm and its subsidiaries.

“It will just be a matter of time for EEI Energy to carve its place in the retail energy space as one of the most innovative retail electricity suppliers in the country and be able to deliver quality service to our customers,” said EEI Energy General Manager Salvador M. Salire, Jr.

In a separate disclosure on Tuesday, EEI Corp. announced that it is in the middle of conducting a follow-on offering (FOO) of its preferred shares, the registration of which is pending with the corporate regulator.

“The company will make the proper disclosure of the terms of the FOO at the proper time once the necessary approvals have been secured,” the company said.

A member of the Yuchengco Group of Companies, EEI Corp. is primarily engaged in the installation, construction and erection of power generating facilities, oil refineries, chemical production plants, and other structures.

The company previously reported a second quarter net income attributable to equity holders of P250.17 million, swinging to profit from previous year-on-year losses of P843.35 million, after generating higher revenues from its construction contracts as well as merchandise and property sales.

EEI Corp. shares at the local bourse shed 6% or 45 centavos to finish at P7.05 apiece on Tuesday. — Angelica Y. Yang

Cancer center in Central Luzon opens to fills gaps in care  

Tomotherapy machine. Image via Central Luzon Integrated Oncology Centre.

THE Central Luzon Integrated Oncology Centre (CLIOC), located in the Mother Teresa of Calcutta Medical Center in San Fernando, Pampanga, announced recently that their doors are open for those in Central and Northern Luzon who need access to cancer care but cannot travel to Metro Manila.   

“We are cheaper compared to the prices of treatment in Metro Manila. Our most expensive treatment, radiotherapy, is already the cheapest among radiotherapy services being offered in NCR [National Capital Region],” said Jerome R. Paule, CLIOC general manager, at a media briefing.  

He also said the majority of their patients come from Region III, namely Pampanga (65% of patients), Bulacan (18%), and Bataan (10%), among other provinces. They usually avail of modalities of cancer care such as surgery, radiotherapy, chemotherapy, and nutritional support.   

In the Philippines, cancer is the second-leading cause of death, with over 92,000 deaths and around 150,000 new cases in 2020 alone, according to the Global Cancer Observatory.  

The Department of Health announced in July their plans of beefing up cancer care funds and upgrading government hospitals across the country into regional cancer centers.  

In the meantime, CLIOC is receiving patients being referred to them by public hospitals in Central Luzon, said Dr. Misael C. Cruz, CLIOC medical director. Despite being a cancer facility connected to a private hospital, CLIOC is making an effort to make treatment more affordable.  

“We all know that out-of-pocket medical expenses [for cancer care] are heavy,” he said at the same briefing. “That’s why we created a socialized advocacy price for those who cannot afford the services.”  

The center’s tomotherapy machine, for example, is a sought-after form of radiotherapy that focuses on diseased tissues and gives real-time evaluation of the area being treated, said Mr. Paule.   

“It’s the only center with a tomotherapy machine in Central Luzon, and it’s similar to machines being used in Makati Medical Center and Asian Hospital,” he added, emphasizing its availability and relative inexpensiveness. 

As part of the Integrated Oncology Centres (IOC), an Asia-wide network of cancer centers, CLIOC stays up to date with the latest standards of cancer care by tapping into teleconsultations with experts from other centers and participating in regional sharing sessions on patient management, said Eng Aik Meng, IOC chair.  

“I do hope more and more centers will have greater collaboration because this will allow benefits to patients,” he said. “For countries with fragmented care, like the Philippines, we must consider how to replicate models of care like what we are doing.”  — Brontë H. Lacsamana 

Gov’t fully awards 7-year bonds at higher rate on rising inflation

BW FILE PHOTO

THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) it offered on Tuesday even as its rate climbed due to concerns over rising inflation.

The Bureau of the Treasury (BTr) borrowed P35 billion as planned via the reissued seven-year T-bonds it auctioned off on Tuesday. The bonds have a remaining life of six years and 10 months.

The bonds attracted P76.128 billion in bids, more than twice as much as the initial offer volume but slightly smaller compared with the P77.091 billion in tenders seen when the notes were last auctioned off on Sept. 7.

The high demand seen on Tuesday prompted the BTr to open the tap facility to borrow an additional P5 billion from the tenor.

The average rate of the reissued seven-year bonds climbed by 3.7 basis points to 3.826% on Tuesday from the 3.789% seen in the previous auction.

This was also higher than the 3.621% rate quoted for the tenor at the secondary market prior to the auction, based on the PHP Bloomberg Valuation Service Reference Rates.

National Treasurer Rosalia V. de Leon said the average rate of the tenor increased due to inflation concerns.

Headline inflation quickened to 4.9% in August from 4% in July, its fastest pace in more than two years or since the 5.2% seen in December 2018, amid rising food and utility costs. This brought the eight-month average to 4.4%, above the central bank’s target of 2-4% and forecast of 4.1% for the year.

Despite rising inflation, analysts expect the central bank to keep benchmark interest rates at their current record lows at its policy meeting on Thursday as it looks to support economic recovery.

Meanwhile, a bond trader said the market likely already priced in the US Federal Reserve’s plan to taper its asset purchases, hence the higher rates seen on Tuesday.

Still, the trader said yields may not spike as much as what was seen during the “taper tantrum” episode in 2013 as the US central bank has been communicating with the market on its policy direction this time around.

Markets here and abroad are waiting for the two-day Federal Open Market Committee meeting on Sept. 21-22, where the US central bank is expected to give fresh hints on its plan to unwind its pandemic-driven easy monetary policy.

The BTr is looking to raise P250 billion from the local market this month: P75 billion via weekly offers of Treasury bills and P175 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. — B.M. Laforga

Prosecutors rest case against R. Kelly

FACEBOOK.COM/RKELLY

NEW YORK —  US prosecutors on Monday rested their sex trafficking case against R. Kelly, after a month of often disturbing and graphic testimony from people who accused the R&B star of sexually abusing women and girls.

Prosecutors have sought to portray the 54-year-old Mr. Kelly as a hot-tempered predator who exploited his fame to draw fans and aspiring singers into his circle, only to coerce them into obeying his rigid rules and punish them if they failed.

Defense lawyers have tried to portray Mr. Kelly’s accusers as fans who felt jilted after being unable to capitalize on the singer’s fame, and questioned why they failed to leave Mr. Kelly sooner or go to the police, and waited years to come forward.

US District Judge Ann Donnelly suggested that the jurors in Brooklyn federal court could begin deliberating as soon as Thursday.

That suggests that Mr. Kelly’s defense, which began on Monday and which his lawyers said may include about six witnesses, will likely not include testimony from Mr. Kelly himself.

Mr. Kelly is not required to testify, and would likely be subjected to days of questioning from prosecutors if he took the witness stand.

The singer, whose full name is Robert Sylvester Kelly, has pleaded not guilty to one count of racketeering and eight counts of illegally transporting people across state lines for prostitution.

Prosecutors have accused Mr. Kelly of grooming and preying on women and girls as far back as the mid-1990s, when his music including the 1996 Grammy-winning song “I Believe I Can Fly” propelled him to fame. — Reuters

DITO says it now has 3 million subscribers

DITO Telecommunity Corp. announced on Tuesday that it now has three million subscribers nationwide.

“[DITO] successfully hit the 3 million subscriber mark this morning,” the new telco player said in a statement.

The company recently opened 14 areas for its commercial service. It plans to open five more areas on Sept. 24.

DITO’s new areas include Norzagaray, Bulacan; Lupao, Nueva Ecija; Dupax Del Norte, Nueva Vizcaya; Laoac, Pangasinan; Nagcarlan, Laguna; Lemery, Batangas; Maragondon, Cavite; and Lucban, Quezon.

On Sept. 24, DITO plans to make its service available in Balagtas, Bulacan; Bacolor, Pampanga; Santa Barbara and Malasiqui, Pangasinan; and Sibulan, Negros Oriental.

The company has said it is hoping to launch its fifth-generation (5G) home broadband service in the fourth quarter.

DITO will use its 5G network to provide fixed-wireless connectivity to the home as an alternative to the fiber-to-the-home service. — Arjay L. Balinbin

Pandemic reverses TB testing gains, Bicol‌ and ‌Apayao‌ ‌are exceptions  

A COLORIZED scanning electron micrograph of Mycobacterium tuberculosis, the bacteria that cause TB. — Image via National Institute of Allergy and Infectious Diseases, National Institutes of Health/Flickr

THERE WAS a 57% gap between estimated and notified cases of tuberculosis (TB) in the Philippines in 2020 as TB-related health services were disrupted due to the coronavirus diseases 2019 (COVID-19) pandemic and reversed the gains of previous decades, according to the National Tuberculosis Program’s (NTP) 2021 report.  

The exceptions are Bicol and the Province of Apayao, whose NTP units earned gold awards for recording the highest tuberculosis testing rates in the second quarter of 2021.   

A spokesperson for the Cordillera Administrative Region (CAR) said this was achieved through the multisectoral approach it adopted in close coordination with the Department of Health (DoH) and non-government organizations.  

“This was made possible through the concerted effort and support of the municipal and provincial government of Apayao,” said Lealyn S. Badongen, NTP nurse coordinator of the CAR’s DoH Center for Health Development, in an e-mail to BusinessWorld. “This institutionalized convergence of agencies in the implementation of public health programs allowed us to meet our targets amid the pandemic.”  

A fixed funding mechanism is only one of several factors that can improve testing rates, a spokesperson for the DoH-NTP told BusinessWorld. Other factors that also contribute to such include strengthened policies and health systems capacity.  

Cognizant of the difficulties posed by the ongoing mobility restrictions, the DoH and its international partners are thus recognizing regions and local government units that have continued TB care and services despite the pandemic through the Race to End TB Awards.  

“Timely and accurate diagnostic testing is the gateway to proper TB care and treatment,” DoH Undersecretary Maria Rosario S. Vergeire said in a ceremony that recognized the award winners.  

Per the NTP’s 2021 report, the repurposing of TB testing sites for COVID-19 testing, lack of manpower, and a lack of personal protective equipment are some of the reasons for the underachievement of population testing last year.  

The Race to End TB online dashboard records the TB testing rates of Apayao and Bicol as 0.53% and 0.21%, respectively. This translates to 53 out of every 100 persons in Apayao, and 21 out of 100 in Bicol. Population testing rate is defined as the proportion of the population who are tested for TB through WHO-recommended diagnostic testing. This is calculated as number of tested divided by total population.  

A gold award was also given to the Bicol Center for Health Development for garnering the highest enrolment rate of bacteriologically-confirmed TB (BCTB) at 48.6%. Recognized too for their performance in the same category were Davao del Sur and the municipalities of Albuera (Leyte), Villaba (Leyte), and Kolambugan (Lanao del Norte).  

Gold awards were likewise given to Region VIII and Region X for their treatment success rate in drug-resistant TB (DRTB) and TB preventive treatment (TPT), respectively. Other best-performing local government units (LGUs) for DRTB treatment success rates include the provinces of Leyte, Camarines Norte, Catanduanes, and Sultan Kudarat, and the municipalities of Palo (Leyte), Basud (Camarines Norte), and Cainta (Rizal).   

Two other LGUs — Iligan City and the municipality of Alitagtag (Batangas) — were recognized for their TB preventive treatment.  

According to the World Health Organization (WHO)’s Global Tuberculosis Report 2020, eight countries — including the Philippines — account for two-thirds of the total incidence of the disease worldwide.  

In the world’s poorest countries, excess deaths from TB could exceed those from the coronavirus itself, said Peter Sands, executive director of the Geneva-based aid body known as the Global Fund.     

Among the preventive measures for stopping the spread of TB are making a home well-ventilated, finishing the medications prescribed, and reducing the stigma that discourages people from getting tested in the first place. — Patricia B. Mirasol 

PDIC backs proposed charter amendments

THE PHILIPPINE Deposit Insurance Corp. (PDIC) is backing measures seeking to amend its charter to make it an attached agency of the Bangko Sentral ng Pilipinas (BSP) and to increase coverage, saying these will boost its operations.

“Enhanced coordination is a key benefit in the proposed attachment of PDIC to the BSP. Our mandates and those of the BSP’s, primarily on protecting financial consumers and promoting financial stability are strongly connected,” the PDIC said in an e-mail.

“With this proposal, decision-making is hastened and synchronization of regulatory actions is enhanced. These will ultimately benefit the depositing public,” it added.

The BSP earlier said making PDIC an attached agency of the central bank, which is proposed under House Bill (HB) 8818 and Senate Bill (SB) 2365 that seek to amend the state deposit insurer’s charter, is in line with recommendations from the International Monetary Fund.

The PDIC is currently an attached agency of the Department of Finance.

HB 8818 was passed by the House of Representatives in March, while SB 2365 is awaiting second reading at the Senate as of August.

The PDIC also said the proposed revisions to their charter will help them improve their mandate to protect depositors as it gives them the authority to adjust the maximum deposit insurance coverage, which is currently at P500,000 after a thorough cost-benefit analysis.

The maximum deposit insurance coverage was increased to P500,000 from P250,000 in April 2009.

“Considering it was last increased in 2009, more than a decade ago; and in light of the various economic and financial market developments since then, a comprehensive study on the benefits and challenges of adjusting the maximum deposit insurance coverage is in order,” it said.

The PDIC said the proposal to expand deposit insurance coverage to other products, such as Islamic deposits, will also benefit the public.

Industry groups, including the Bankers Association of the Philippines and the Chamber of Thrift Banks, have earlier expressed support for the proposed measure that will introduce changes to the PDIC charter. — L.W.T. Noble

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