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Alfamart to open 200 stores in Luzon this year

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Minimart chain Alfamart said on Friday that it is on track to have over 1,200 stores in the Philippines by yearend, after it plans to open 200 stores across Luzon this year. 

The mini-supermarket chain aims to “play a bigger role in community development” through supporting local entrepreneurs. Without disclosing specific numbers, Alfamart Philippines said it aims to add more stores in “underserved communities” this year.  

“We want every Alfamart store to benefit its local community by generating employment, providing rental income to its lessors and creating opportunities for local suppliers,” Alfamart Philippines Chief Operating Officer Harvey T. Ong said in a statement.   

Alfamart Philippines is a joint venture between the SM Group and PT Sumber Alfaria Trijaya Tbk (Alfamart Indonesia). It has over 17,000 outlets in Indonesia.  

Alfamart carries products from basic grocery items, selected SM Bonus products, fresh and frozen items, snacks, and personal care products. It is also a supplier of neighborhood eateries and mom-and-pop shops.   

Meanwhile, its bigger branches allow local entrepreneurs to set up shop within Alfamart’s vicinity, helping them gain access to its “strategic locations.”   

“A growing number of bills payment kiosks, food kiosks, and laundry shops are already partnering with us to offer their products and services to our shoppers. Partnerships are especially relevant now that everyone is reeling from the economic effects of the pandemic,” Mr. Ong said.  — Keren Concepcion G. Valmonte  

D&L says maiden bond offering nearly five times oversubscribed

D&L Industries, Inc. said its bond offering received “strong support” from fixed-income investors as total bids amounted to P13.8 billion so far, 4.6 times its base offer of P3 billion.  

The maiden bond offer has an oversubscription option of up to P2 billion.   

“We are overwhelmed with the strong support the fixed income community has shown us in our debut bond issuance. This has allowed us to price our bonds at among the lowest rates in Philippine corporate bond history,” D&L President and Chief Executive Officer Alvin D. Lao said in a statement on Friday.   

D&L’s bond offer comprises P2-billion three-year Series A bonds at a 2.7885% per annum (p.a.) rate due 2024, with an oversubscription option of up to P1 billion.  

Meanwhile, its five-year Series B bonds with 3.5962% p.a. due 2026 have a base offer of P1 billion and a P1 billion oversubscription option.  

The bonds have been rated by the Philippine Rating Services Corp. with PRS Aaa with a “stable outlook,” which means the credit rating agency sees the company has a “very strong capacity” to meet financial obligations and expects the rating to be maintained within the next twelve months.  

“This maiden offering will be a useful financial exercise for the company and will allow us to fully fund our Batangas expansion, which will be the next leg of growth for the company,” said Mr. Lao.   

The company will be using proceeds from the bond issuance to fund its Batangas plant expansion as well as to cater to its working capital requirements. Total capital expenditures for the project amount to P8 billion, and the company said it had P3.5 billion left.   

D&L said the plant will be used for its export business, particularly food and the oleochemicals segment. The company is planning to develop more coconut-based products and is keen on entering new markets abroad.   

“We are looking forward to May 2022 when commercial operations finally start,” Mr. Lao said.   

On Friday, D&L shares at the stock exchange declined by 0.24% or two centavos to close at P8.28 each.  — Keren Concepcion G. Valmonte  

Meralco wants to retire Tanza substation

Manila Electric Co. (Meralco) has asked the Energy Regulatory Commission (ERC) to approve of its petition to retire its substation in Tanza, Cavite and withdraw its equipment from the facility. 

Based on a document submitted to the ERC, the power provider said the Tanza substation has been operating for over 29 years, and runs on an odd-voltage system or one that has a voltage of other than 34.5 kiloVolts. 

Meralco is currently process of converting odd-voltage systems to standardized distribution voltage systems within its franchise area.
 

“The voltage standardization will reduce technical system loss, improve flexibility and reliability of electric service by phasing out isolated odd voltage systems, and minimize equipment inventory types,” it said. 

According to the company, there is no reason to continue running the Tanza substation since its “load can be transferred to adjacent source circuits.”
 

Meralco also proposed the retirement of power transformer banks and complete conversion of the substation’s circuit, a move that will help reduce system losses of around 54,940 KWHR (kilowatt per hour) annually. 

If ERC approves the firm’s proposal, some P3.27 million worth of equipment and machinery will be withdrawn from the Tanza facility, with some slated to be reused for distribution services. 

“There will be no impact to the customers currently being served by the Tanza substation,” Meralco said, referring to the effects of the facility’s proposed closure. 

In an initial order posted on its website this week, ERC said it will hold hearings via Microsoft Teams on Oct. 26 and Nov. 3 to discuss Meralco’s petition. 

Shares of Meralco in the local bourse improved by 2.84% or P8 to finish at P289.80 apiece on Friday. 

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., which has interest in BusinessWorld through the Philippine Star Group, which it controls.  — Angelica Y. Yang 

Converge inks P3-billion loan deal

Fiber broadband provider Converge ICT Solutions, Inc. signed a P3-billion term loan agreement with the state-owned Land Bank of the Philippines (LANDBANK) to help finance its terrestrial and subsea domestic fiber backbone network expansion. 

The agreement would also support the internet service provider’s working capital requirements, Converge said in a press release on Friday. 

The total loan package will include an additional short term loan line and a facility for trade transactions amounting to up to P2 billion. 

“This loan package will provide Converge with financial flexibility as we continue to connect Filipino households to our pure fiber network nationwide,” Converge President Maria Grace Uy said. 

“We expect this financing facility to strengthen our balance sheet and help us reach our goal of covering 55% of Filipino households by 2025.” 

Converge set P20 billion in capital expenditures for 2021 to fund its nationwide expansion, connecting Visayas and Mindanao to its national fiber backbone.  

By the end of June, the Converge pure fiber network has reached over 8.2 million homes, accounting for 32% of Philippine households. 

“There is still huge pent-up demand for high-speed broadband connectivity in the country. And the need for quality internet services became even more critical when the pandemic happened. Suddenly, the home became the office, the school, entertainment center, and marketplace in one,” Converge Chief Executive Officer Dennis Anthony H. Uy said. — Jenina P. Ibañez 

Grab launches online supermarket in Philippines

Grab Philippines on Friday launched an online supermarket that offers fresh food products for next-day delivery. 

Under its on-demand goods delivery service GrabMart, GrabSupermarket Fresh will offer fresh fruits and vegetables, meat, seafood, grains, and plant-based products. 

“GrabSupermarket Fresh is a new format we are launching under GrabMart to meet the fast-growing and evolving grocery needs of Filipino online consumers,” Grab Philippines Head of Deliveries Anton Y. Bautista said. 

“As lockdowns continue to impact the flow of goods and fresh produce into Metro Manila, we believe that our latest offering will enable our users to safely and conveniently access farm-fresh produce easily through the Grab app.” 

This is Grab’s third online supermarket in the region, after those opened in Malaysia and Singapore. 

The goods come from farmers and suppliers across the country, including Pangasinan and Bukidnon. The company partnered with Teraoka Family Farm, Bukidnon Milk Company, Emerald Fresh, 28 Derby, Tender Bob’s, and Don Bangus. 

“Grab aggregates and sends all fresh produce orders for the day to partnering farmers and suppliers who will then arrange for the items to be delivered in bulk to Grab’s sorting and packing facility the next day,” the company said. 

Orders placed before 5 p.m. can be delivered the next day. 

“We will continue to expand and curate the best assortment of fresh produce and goods for our users based on in-app shopping data while prioritizing freshness and quality,” Mr. Bautista said. 

The international firm operating across Southeast Asia reported that its GrabMart gross merchandise value (GMV) in the first quarter of 2021 went up 36 times compared to the same period last year. Operating in eight countries, the service’s GMV went up 21% compared to the fourth quarter of 2020. 

Grab Holdings, Inc. posted a $652 million net loss in the first quarter, compared to $771 million a year earlier. — Jenina P. Ibañez 

DoE expects over 7,700 MW of committed power projects to boost grid

THE Department of Energy (DoE) said committed power projects totaling 7,712 megawatts (MW) are expected to add capacity to the grid by 2027, with coal facilities making up half of the estimate. 

“[The power sector] is continuing with the construction of power plants in anticipation of economic recovery. We are expecting an additional capacity of 7,712 megawatts [of committed power projects] from 2021 to 2027,” DoE Secretary Alfonso G. Cusi told President Rodrigo R. Duterte in a mix of Tagalog and English during a briefing late Thursday. 

Committed projects are those that have secured financial closing with their investors or bankers. 

Of the estimate, coal plants will make up around 50% or 3,821 MW, followed by natural gas and renewable energy facilities, with 2,400 MW and 1,053 MW, respectively. 

Meanwhile, capacity from committed battery energy storage system projects is expected to reach 2,459 MW by 2027, based on DoE data. 

In the same briefing, Mr. Cusi also reiterated that there is sufficient power supply for the 2022 elections, citing an initial forecast from the National Grid Corp. of the Philippines. 

The grid operator’s initial projections showed power supply in 2022 will not fall below the contingency and regulating minimums, meaning yellow and red alerts are unlikely to happen. 

Senator Sherwin T. Gatchalian, who chairs the Senate’s energy committee, earlier questioned the DoE’s projections for the 2022 elections as that did not take into consideration forced and unplanned outages and the declining reserves of the offshore Malampaya gas field. 

Mr. Gatchalian last week filed Senate Resolution 867 to look into the preparations of the DoE and the energy industry to ensure unhampered power supply during next year’s elections. — Angelica Y. Yang 

Customs seizes illegal goods worth P19.95B in first eight months

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THE Bureau of Customs (BoC) seized illegal goods worth P19.95 billion in the first eight months, with fake items making up the majority. 

The agency on Friday said the goods were confiscated during 615 operations from Jan. 1 to Aug. 23 from illegal shipments of narcotics, counterfeit goods, cigarettes and other tobacco products.  

Fake items made up three-fourths of the value of the seized smuggled goods at P15 billion, followed by illegal drugs worth P1.88 billion. In the same period, the BoC also confiscated smuggled cigarettes and other tobacco products worth P1.23 billion. 

Customs Commissioner Rey Leonardo B. Guerrero reported to the Finance department that the BoC also confiscated other smuggled goods including general merchandise (P887.61 million), agricultural products (P267.27 billion), and used clothing (P56.63 million). 

The BoC likewise seized P290 million in currency, jewelry, fuel, chemicals, and steel products. Other items include cosmetics, personal protective equipment and other medical supplies (P182.49 million), vehicles and accessories (P77.54 million), firearms (P40.12 million); electronic parts and products (P23.55 million); alcoholic beverages (P3.91 million); and wildlife and natural resources (P3.81 million). 

The BoC said filed 67 criminal cases from Jan. 1 to Aug. 27 with the Department of Justice against 217 respondents suspected for participation in smuggling activities. The agency also filed 48 administrative cases against customs brokers before the Professional Regulation Commission. 

The Customs bureau in August collected P54.05 billion in duties and taxes, going beyond the P53.06-billion goal for the month amid better valuation and higher volume of imports. 

From January to August, BoC’s collections rose 19% to P412.96 billion from P347.29 billion a year earlier. The bureau’s collections are expected to reach P616.75 billion this year. — LWTN 

BSP makes full award of short-term bills

THE BANGKO SENTRAL ng Pilipinas (BSP) fully awarded its offer of one-month securities on Friday as its yield went down after the central bank said it still has policy space to support the economy. 

The BSP raised P110 billion as planned from its auction of 28-day bills on Friday.  

The offer was oversubscribed, with demand reaching P148.05 billion. However, this was below the P144.79 billion in bids recorded at last week’s auction. 

Accepted rates for the papers ranged from 1.7125% to 1.7275%, slimmer than the 1.71% to 1.7305% margin seen on Aug. 27. This caused the average rate of the one-month bills to dip by 0.17 basis point (bp) to 1.7194% from 1.7211% previously. 

The short-term securities and the term deposit facility are tools used by the BSP to mop up excess liquidity in the financial system. 

The average yield on the one-month BSP bills slipped after the central bank said will keep its monetary policy stance supportive of growth as the country faces an “economic slack”, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message. 

BSP Governor Benjamin E. Diokno said in an online briefing on Thursday that the central bank has ample space to remain accommodative. 

“The BSP believes that the current accommodative policy settings should be allowed to continue to work their way through the economy to bolster the recovery in private consumption and investment,” Mr. Diokno said. 

The central bank kept benchmark rates unchanged in its previous review held on Aug. 11 as it acknowledged risks from the reimposition of strict lockdowns caused by a surge in infections. The Monetary Board will have its next policy review on Sept. 23. — LWTN 

DBP grants P115-M loan for solar-powered irrigation systems in Lanao del Sur

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THE Development Bank of the Philippines (DBP) has extended a P115-million loan for the installment of solar-powered irrigation systems in Lanao del Sur. 

DBP President and Chief Executive Officer Emmanuel G. Herbosa said in a statement on Friday that the project will irrigate 1,200 hectares of agricultural lands in the province.  

The system will also give 26 barangays in the fourth-class municipality of Taraka access to potable water. 

An automatic solar-powered irrigation system extracts water from deep wells or open sources and uses moisture sensors to regulate its flow to avoid flooding while promoting conservation. The water is delivered to irrigation channels or to a reservoir before being distributed to farms.  

“In collaboration with the Mindanao Development Authority, DBP shall continue to play a crucial role in establishing viable irrigation systems to boost agricultural productivity in the area,” Mr. Herbosa said.  

“Through this project, we can also bring clean and safe water to barangays within the municipality of Taraka that are not reached by existing water systems,” he added, noting the area has over 27,000 residents. 

DBP’s net earnings dropped 62% to P547.83 million in the first quarter from P1.455 billion a year ago due to higher expenses. 

It was the country’s sixth largest bank in terms of assets at end-March with P1.102 trillion. — LWTN 

Peso slips ahead of US jobs data

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THE PESO inched down against the dollar on Friday as the market was on wait-and-see mode ahead of the release of August US jobs data. 

The local unit closed at P49.84 per dollar on Friday, slipping by 1.5 centavos from its P49.825 finish on Thursday, based on data from the Bankers Association of the Philippines. 

Meanwhile, it strengthened by 11.5 centavos from its P49.955-a-dollar close on Aug. 27. 

The peso opened Friday’s session at P49.72 per dollar. Its weakest showing was at P49.91, while its intraday best was at P49.64 versus the greenback. 

Dollars exchanged declined to $924.2 million on Friday from $1.146 billion on Thursday. 

A trader said the peso dropped on profit-taking ahead of the release of the August US jobs report later on Friday. 

Meanwhile, Mr. Ricafort said the local unit declined versus the dollar as oil prices rose. 

Brent crude futures inched up by 0.2% or 13 cents to $73.16 per barrel at 0619 GMT, while each barrel of US West Texas Intermediate crude futures slipped 4 cents or 0.1% to $69.95, Reuters reported. Both oil contracts rose 2% on Thursday. — with Reuters 

Trash to treasure: Thailand makes COVID-19 protective gear out of upcycled bottles

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SAMUT PRAKAN, Thailand – With an abundance of plastic waste but a scarcity of personal protective equipment (PPE), Thailand is turning trash into treasure by upcycling bottles into protective clothing for people at risk of coronavirus infection.

Millions of plastic bottles have been collected, shredded and turned into threads to be weaved into fabrics eventually used for PPE, either for hospitals or Buddhist temples, where monks have been cremating coronavirus victims.

The effort comes as Thailand has recorded more than 1.1 million coronavirus infections and 12,000 deaths since April this year.

“There are times where it is very difficult to get hold of PPE suits, sometimes even if you have money, you can’t buy,” said Phra Maha Pranom Dhammalangkaro, abbott of Chakdaeng temple in Samut Prakan province near Bangkok.

“But now we’re making it out of upcycling plastic bottles, so what’s trash is now valuable.”

Temple volunteers have been sewing orange PPE suits for monks, undertakers and scavengers, and PPEs are being sent to thousands of temples in need across the country.

Though these are not medical-grade, they provide at least some protection for those potentially exposed to COVID19, and one PPE suit can be made using only 18 plastic bottles.

The fabric for the PPEs is being donated by a textile factory in Rayong province, that usually makes fabrics used by some major global brands. At the factory, threads are made from recycled bottles and spun into a giant roll, then weaved into fabric that gets treated to become water resistant.

“This is so that it can prevent particle dust from seeping through and the virus from coming into contact with us,” said Arnuphap Chompuming, head of sales and marketing at textile firm Thai Taffeta, which operates the factory east of Bangkok.

Some 18 million plastic bottles have been used since the middle of last year to make fabric for PPEs, which have been sent to hospitals around the country, he added.

The Chakdaeng temple abbot said the upcycling project was helping to ensure more people exposed to the coronavirus were protected, not only medical professionals. “We’re saving lives and the environment as well,” he said. – Reuters

Japan’s struggling PM Suga steps down, sets stage for new leader

TOKYO – Japanese Prime Minister Yoshihide Suga said on Friday he would step down, setting the stage for a new premier after a one-year tenure marred by an unpopular COVID-19 response and rapidly dwindling public support.

Mr. Suga, who took over after Shinzo Abe resigned last September citing ill health, has seen his support ratings sink below 30% as the nation struggles with its worst wave of COVID-19 infections ahead of a general election this year.

Suga did not capitalise on his last major achievement – hosting the Olympics, which were postponed months before Suga took office as coronavirus cases surged.

His decision not to seek reelection as ruling Liberal Democratic Party (LDP) election this month means the party will choose a new leader, who will become prime minister.

There is no clear frontrunner, but the popular minister in charge of vaccination rollout, Taro Kono, intends to run, broadcaster TBS said on Friday without citing sources. Former foreign minister Fumio Kishida has already thrown his hat in the ring.

Before Abe’s record eight-year tenure, the country had gone through six prime ministers in as many years, including Abe’s own troubled first one-year term.

Tokyo stocks jumped on news of Suga‘s decision, with the benchmark Nikkei rising 2% and the broader Topix hitting its highest levels since 1991.

“I want to focus on coronavirus response, so I told the LDP executive meeting that I’ve decided not to run in the party leadership race,” Suga told reporters. “I judged that I cannot juggle both and I should concentrate on either of them.”

He said he would hold a news conference as early as next week.

The announcement ended a rollercoaster week in which Suga pulled out all the stops to save his job, including suggestions he would sack his long-term party ally, as well as plans to dissolve parliament and reshuffle party executive and his cabinet.

Suga is expected to stay on until his successor is chosen in the party election slated for Sept. 29. The winner is assured of being premier due to the LDP’s majority in the lower house of parliament. The government has been considering holding the general election on Oct. 17.

 

RACE FOR LEADER

Rival Kishida, a soft-spoken Hiroshima lawmaker, on Thursday criticised Suga‘s coronavirus response and urged a stimulus package to combat the pandemic.

“Kishida is the top runner for the time being but that doesn’t mean his victory is assured,” said Koichi Nakano, political science professor at Sophia University.

Nakano said Kono, Suga‘s administrative reform minister, could run if he gets the backing of his faction leader, Finance Minister Taro Aso.

Former defence minister Shigeru Ishiba, also popular with the public as a potential premier, said he was ready to run if the conditions and environment are right. He was a rare LDP critic of Abe during his time as prime minister.

Kono has led Japan‘s rocky inoculation drive but remains high on the list of lawmakers voters want to see succeed Suga. He has not commented on the report that he plans to run.

A former foreign and defence minister, Kono, 56, is popular with younger voters after building support through Twitter, where he has 2.3 million followers – a rarity in Japanese politics dominated by men in their 60s or older.

Abe’s stance will be closely watched given his influence inside the two largest factions of the LDP and among conservative MPs, experts say.

The LDP-led coalition is not expected to lose its majority in the lower house, but forecasts suggest that the LDP could lose the majority that it holds on its own, an outcome that would weaken whoever leads the party next.

“Stock prices are rising based on a view that the chance of LDP’s defeat in the general election has diminished because anyone other than Suga will be able to regain popularity,” said senior economist at Daiwa Securities Toru Suehiro.

Suga‘s image as a savvy political operator capable of pushing through reforms and taking on the stodgy bureaucracy propelled his support to 74 percent when he took office.

He initially won applause for populist promises such as lower mobile phone rates and insurance for fertility treatments. But removing scholars critical of the government from an advisory panel and compromising with a junior coalition partner on policy for healthcare costs for the elderly drew criticism.

His delay in halting a domestic travel programme – which experts say may have helped spread coronavirus around Japan – hit hard, while the public grew weary of states of emergency that hurt businesses. – Reuters