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Maynilad in talks with banks for IPO

WEST ZONE water concessionaire Maynilad Water Services, Inc. is now talking to banks as it prepares for its planned initial public offering (IPO), according to its chairman.

“They’re busy talking to the banks already. We’ll try to put it (IPO) away this year or latest next year,” Maynilad Chairman Manuel V. Pangilinan told reporters on the sidelines of the 77th Management Association of the Philippines inaugural meeting in Taguig City on Wednesday.

In November, Maynilad President and Chief Executive Officer Ramoncito S. Fernandez said the water provider would file its IPO application by the first quarter of 2025.

He said Maynilad was targeting a listing date of either April or July.

“Our target is to be prepared for two possible dates, before the elections in April, or after the elections in July,” he noted.

Mr. Fernandez said that Maynilad has already appointed HSBC, Morgan Stanley, and UBS as the company’s financial advisors.

The Philippine Stock Exchange is expecting to have six IPOs this year.

Signed into law on Dec. 10, 2021, Republic Act No. 11600 granted Maynilad a 25-year legislative franchise until 2047 to establish, operate, and maintain a waterworks system and sewerage and sanitation services in the west zone service area of Metro Manila and Cavite province.

The law also provides that Maynilad should offer at least 30% of its outstanding capital stock within five years from the grant of the franchise.

Pangilinan-led Metro Pacific Investments Corp. (MPIC) has a 53% stake in Maynilad, while Consunji-led DMCI Holdings, Inc. holds a 25% stake. Other investors have the remaining 2%.

MPIC is one of the 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

Jollibee opens first Tiong Bahru Bakery in PHL

THE Jollibee Group has opened the first branch of Singapore’s Tiong Bahru Bakery brand in the Philippines, signaling the fast-food giant’s foray into fresh viennoiseries and handmade pastries.

The branch is located at Verve Residences Tower 2, Bonifacio Global City (BGC) in Taguig, Jollibee said in a statement on Wednesday.

Jollibee Group Global President and Chief Executive Officer (CEO) Ernesto Tanmantiong said the new store is the first international branch of the Tiong Bahru Bakery brand.

“Introducing Tiong Bahru Bakery to the Philippine market aligns with our commitment to providing Filipinos with exciting, world-class dining experiences,” he said.

Tiong Bahru Bakery has 21 branches in Singapore. It is known for its croissants and other handmade pastries that use French ingredients.

The brand’s dining experience is complemented by coffee from sustainably sourced beans produced by the Common Man Coffee Roasters brand.

“For years, the Tiong Bahru Bakery has been synonymous with serving as the epitome of croissants and an array of delectably unique creations. Now, with its arrival in the Philippines, we want the location to be the people’s go-to spot where they can indulge in freshly baked products while soaking in the store’s inviting ambiance,” Jollibee Group Philippines CEO Joseph Tanbuntiong said.

Jollibee said the BGC branch is open daily from 7 a.m. until 10 p.m.

The Jollibee Group’s portfolio consists of 19 brands with over 9,500 stores across 32 countries. Some of its brands include Jollibee, Chowking, Greenwich, and Red Ribbon.

On Wednesday, Jollibee shares were unchanged at P251.40 per share. — Revin Mikhael D. Ochave

Vena Energy, MGreen finalize funding for solar project

FREEPIK

SINGAPORE-BASED Vena Energy and MGen Renewable Energy, Inc. (MGreen) have reached financial close on the 550-megawatt (MW) Bugallon Solar Power Project in Pangasinan.

“The financial close of the Bugallon Solar Power Project represents a significant milestone in advancing renewable power generation in the Philippines,” Simone Grasso, chief investment officer at Vena Energy, said in a statement on Wednesday.

“We appreciate the unwavering confidence and support of our banking partners in our initiatives. This facility will be instrumental in driving our growth in the Philippines as we continue to deliver innovative green solutions to our customers and accelerate the energy transition across the Asia Pacific region,” he added.

Slated for completion by the fourth quarter of 2025, the project is expected to generate approximately 958 gigawatt-hours of clean energy annually, equivalent to powering more than 810,000 households.

The solar project is financed partly through an P18.3-billion green loan facility with Security Bank Corp., Rizal Commercial Banking Corp., and Philippine National Bank serving as lenders and hedging banks.

SB Capital Investment Corp., RCBC Capital Corp., and PNB Capital and Investment Corp. are the mandated lead arrangers, while RCBC serves as the green loan coordinator.

Vena Energy and MGreen signed an investment agreement to jointly develop, construct, and operate the solar project last year.

In 2023, MGen and Vena launched the commercial operations of their 68-MW solar power project in Currimao, Ilocos Norte.

Vena Energy owns, develops, constructs, and operates a renewable energy portfolio of onshore wind and solar, offshore wind, and energy storage projects totaling 39 gigawatts.

MGreen is a subsidiary of power distributor Manila Electric Co. (Meralco). It owns and operates Global Business Power Corp. and MGreen, which are focused on using advanced and highly efficient technologies that provide reliable and cost-competitive power to customers.

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., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

FILRT sees 13.3% rise in new leases

FILINVESTREIT.COM

FILINVEST REIT CORP. (FILRT) saw a 13.3% increase in new leases for the first nine months of 2024 compared to the full year of 2023, the company said on Wednesday.

The increase was led by new lease accounts and expansions of multinational companies within the Northgate Cyberzone development in Muntinlupa, FILRT said in a regulatory filing.

Northgate Cyberzone consists of 16 Grade A office buildings that offer workspaces for businesses.

“The proactive efforts of FILRT’s management to swiftly address pre-termination challenges have spurred the arrival of new tenants, reinforcing the area’s status as a prime business hub in the south,” FILRT said.

“This strategic approach continues to attract global enterprises seeking to expand within a master-planned, strategically located environment,” it added.

FILRT said NASDAQ-listed data and artificial intelligence company EXLService Holdings, Inc. recently leased an additional 1,750 square meters (sq.m.) of space.

The company added that New Zealand-based Building Engineering and Design Co. expanded its offices in Filinvest Two by leasing an additional 1,724 sq.m.

The domestic branch of global professional services firm Genpact Services LLC also leased additional space in the iHub 1 Building, marking its sixth expansion with FILRT.

The company also welcomed Singapore-based business process outsourcing company Gear Inc., which will lease 1,993.10 sq.m. of office space within the Filinvest One Building.

FILRT is the real estate investment trust (REIT) of Filinvest Land, Inc. Its commercial portfolio consists of 17 office buildings and 2.9 hectares of land being leased to the owner and operator of Crimson Resort & Spa Boracay.

On Wednesday, FILRT shares rose by 0.34% or one centavo to P2.99 per share. — Revin Mikhael D. Ochave

Eggdrop ‘drops’ in Manila

EGGDROP’S first store in the Philippines opened its doors at the Mall of Asia on Dec. 19, 2024.

AN egg sandwich may not be the most exciting thing in the world, but if you’re a fan of K-anything (that is, Korean pop culture), the Philippine franchise of Korean egg sandwich shop Eggdrop just might tickle your fancy.

“I first became exposed to the brand because of Hospital Playlist, the K-drama,” said Stewart Ong, President of Butter and Salt Group, Inc., the same company that brought in M (Magnolia) Bakery and St. Ali Coffee to the Philippines. “This kid was eating it; parang ang sarap-sarap (it looked so delicious).”

BusinessWorld got a taste of its egg sandwich during a preview on Dec. 17 (it’s now open to the public at the SM Mall of Asia). Ours came with a few strips of bacon and a special sauce that Mr. Ong told us was made of sriracha and ranch. It was a bit too sweet for our taste, but it already has its captive market with Filipinos struck by K-fever. We also had one of their cold Strawberry Lattes, basically a cool dessert in a cup, but we have no complaints.

Another hook would be the price: The cheapest sandwich, made up of a scrambled egg, cheese, and the sauce, would cost about P140, and adding more trimmings would bring you up to about P205. Their coffees and other drinks cost about P100 and up. And yet, there’s no scrimping on the ingredients: we found the bread excellent (Mr. Ong credits this to really good butter).

As for the eggs, “While doing the R&D, I didn’t know that in the Philippines, walang (there are no) certified organic eggs,” said Mr. Ong. “There are a lot of farms that do organic practices, so we made sure to use (cage-free) premium brown eggs.

“The beauty, I think, is in the simplicty” of the sandwiches, he added.

They’re planning to open one or two stores in the first or second quarter of this year, with the next location in BGC’s High Street.

South Korea has 290 Eggdrop branches, and the Philippines is only its second overseas location (their first venture outside Korea was in Thailand). Mr. Ong noted that “Korea is a top destination now among Filipinos. We’re the top consumer of K-pop, K-drama. I think anything Korean now would resonate well with Filipinos.”

Looking at Butter and Salt’s portfolio, we figured out something: Mr. Ong has a sweet tooth. “Yes!” he said when we asked him. He’s bringing in another sweet brand, the milk tea brand machimachi. “I have to be a fan first, before I bring it here,” he said of the franchises he chooses. “The brands that we have, hindi kami mahihiya (we won’t be embarrassed) to share it with customers.”

Eggdrop is located at Level 1, North Main Mall, SM Mall of Asia, Pasay City. — Joseph L. Garcia

Coca-Cola Beverages Philippines now Coca-Cola Europacific Aboitiz

COCA-COLA Beverages Philippines, Inc. announced on Wednesday the change of its legal name to Coca-Cola Europacific Aboitiz Philippines, Inc. (CCEAP).

In a statement, the company said that it received approval from the Securities and Exchange Commission for the change of its company name.

This follows the completed acquisition of CCEAP by Coca-Cola Europacific Partners Plc and Aboitiz Equity Ventures, Inc. (AEV).

“Our new name signifies an exciting new phase in our journey as we reaffirm our commitment to serving our customers, supporting our people and communities, and driving long-term growth for the country,” said Gareth McGeown, president and chief executive officer of CCEAP.

“In the 113 years that Coca-Cola has called the Philippines home, we look forward to a hundred more years of refreshing our consumers and making a difference through our Great People, Great Beverages, Great Execution, and Great Partners — Done Sustainably,” he added.

In a disclosure dated Nov. 20, 2023, AEV announced the signing of a share purchase agreement for the acquisition of ownership in CCEAP.

The agreement states that AEV will acquire 40% beneficial ownership in the exclusive bottler and distributor of the products of The Coca-Cola Company, while Coca-Cola Europacific Partners will hold a 60% stake.

“More than anything, this new name represents the strength of our partnership with Coca-Cola Europacific Partners,” said AEV President and Chief Executive Officer Sabin M. Aboitiz.

“We share a solid commitment to our customers and communities, and with this new identity, we believe we can make a much more meaningful impact,” he added.

On Wednesday, shares in AEV closed 0.76% or 25 centavos higher at P33 apiece. — Justine Irish D. Tabile

A new wave of home coffee machines is producing perfect pour-overs

RATIO FOUR — RATIOCOFFEE.COM

By Matthew Kronsberg

I’LL ADMIT IˆT. I’m an absolute sucker for evocative tasting notes on a bag of good coffee. Promise me hints of apricot marmalade, candied walnuts, honeysuckle or milk chocolate, and I’m in. Throw in a mention of Lambrusco and Grape Nerds? Even better. But having then shelled out some exorbitant sum of money for a bag of magic beans (even cheap coffee is getting very expensive lately), I’ll go home, start brewing and, more often than not, think to myself that it tastes more than anything like, well, coffee.

That’s not to say those tasting notes are a scam. There is an art to coaxing those promised flavors out of beans. Pour-over is the process tailored to do the job best, but executing it well demands a level of focus and precision I often lack, particularly first thing in the morning before I’ve had any coffee. You need to weigh and grind the beans just so, heat water to the precise temperature recommended for that roast and then pour just the right amount of it over the grounds, at the right speed, at the right intervals, sometimes even in the right pattern. It can take longer to make a cup of pour-over than it does to drink it.

For some people, that’s just fine: They’re in it for the ritual as much as the result. “We’re seeing more and more customers getting away from pods and K-cups,” said Kelli Rognilie, director of marketing for retailer Seattle Coffee Gear. “They’re just wanting more out of their cup of coffee.”

To get more out of their cups without asking people to put in the time, manufacturers have been developing coffee makers which automatically replicate a lot of the pour-over process. It’s a development welcomed not just by coffee drinkers, but also by roasters, says Andrea Allen, co-founder of Onyx Coffee Lab in Bentonville, Arkansas. “People that source, roast, and brew coffee here in our cafe [are] able to put input into those recipes. You really are getting something that is very specifically engineered all the way from the way the machine is made, into the way that barista has decided that that’s like the best profile for this particular cup of coffee. It’s honestly an incredible advance.”

XBLOOM STUDIO ($499)
When Richard Xu was working as a product designer at Apple, Inc., he’d spend about $100 a month on a Blue Bottle subscription that delivered assorted exotic single-origin roasts. One day, a shipment of rare gesha beans caused a crisis of confidence. Mr. Xu, who has a Ph.D. in mechanical engineering, and knows “all the parameters that matter,” recalls thinking, “I can’t brew it. I’m going to ruin it.” He started questioning himself, then Blue Bottle: “Is this the right way for them to sell coffee of that caliber?”

Quality coffee, he decided, had a last-mile problem. Growers could raise incredible beans, and roasters could transform them with heat and package them beautifully. But when customers got them home, all bets were off.  Xu’s fix was to make a coffee machine that could grind and brew, pour-over style, to a roaster’s exact specifications. He left Apple and in 2022 released the $699 xBloom Original.  (He’s not the first Apple alum to go into the consumer coffee business: Douglas Weber decamped to Japan to make coveted gear, including the $1650 HG-2 manual grinder.)

In April 2024, xBloom released the follow-up, Studio, which also combines a grinder, scale, and brewer into a tall, slender, almost Bauhaus-esque device. Like the Original, its great party trick is a robotic arm-like mechanism that shuttles the filter between the grinder and the brewer head.

The simplest way to use the machine is to buy xBloom’s single-serve, whole-bean-filled pods, most of them made by a roster of small, independent roasters like Onyx Coffee Lab and Proud Mary. Each pack comes with an RFID, or radio frequency identification, embedded card with the coffee’s details. Touch the card to the top of the machine, and it sets the Studio to the roaster’s recipe. Pour the beans into the grinder, set the empty pod, which doubles as a filter, in its holder and press start. The 48-millimeter conical burr grinder adjusts to the preferred size and speed, and water streams out at the programmed rate and temperature. Between pours, the arm may even vibrate to agitate the coffee for better extraction.

You can also use your own beans with one of the preset brewing profiles in xBloom’s app or create your own, customizing every aspect of the process. The app even shows the progress of the brew, mesmerizingly charting the changing ratio of water to coffee. The scale, grinder, and hot water dispenser also work independently, so you can use them for everything from making tea to weighing ingredients for preparing  dinner or baking a cake.

FELLOW AIDEN ($365)
For the last 11 years, Fellow has made some of the most stylish, functional coffee gear on the market. Their grinders, scales, and kettles frequently anchor coffee shop counters and are favored by people who take their pour-over coffee seriously. But there was one place Fellow’s gear was conspicuously absent, says founder Jake Miller: his mother’s kitchen. “She doesn’t use a single one of my products.”

That’s changed with the release of Fellow’s first coffee maker, the Aiden, designed to make pour-over-style coffee accessible to the Mr. Coffee set while offering the kind of precision and customization options coffee geeks demand. It has two principal modes of brewing: the one-touch instant brew and the more customizable guided brew. Like the xBloom, Aiden can brew to a roaster’s specification (or yours), with tweakable times and temperatures for each pour. A growing roster of roasters such as La Cabra and Verve already have preset brewing profiles on the machine for some roasts. Unlike the xBloom, Aiden can also serve as a batch brewer, making up to 50 ounces of coffee at a time.

Because the physics of making a cup of coffee differ greatly from making a carafe, the Aiden comes with small and large brewing baskets that ensure the grounds are evenly saturated, however much you brew. Control is via a single dial and a full color, circular screen that’s perfectly fine for scrolling through preset brewing profiles. For the complicated business of creating your own profiles — setting bloom times and tweaking temperatures — use the app.

Aiden also has a few features that set it apart from the pack, like a cold-brew setting that takes a Kyoto-style approach to the process: It begins with a hot water bloom, then very slowly drips room temperature water over the saturated grounds. It also has a preset option, so your coffee or cold brew can be ready when you walk into the kitchen (for the truly impatient, consider the Cumulus cold coffee machine, which uses capsules of concentrate to dispense ice-cold nitro-infused java into your cup in seconds). For the inveterate dial-twiddlers, it even has a hidden Easter egg, the shoot-em-up video game Spacey, playable on the brewer itself.

RATIO FOUR ($259)
If screens, menus, and apps are too much to deal with first thing in the morning (or ever), the Ratio Four is the way to go. Portland, Oregon-based Ratio was founded in 2012 with the intent of automating the pour-over process in the simplest way possible. Previous models, the Ratio Six and the Ratio Eight, were sleekly designed appliances geared more for brewing by the batch than by the cup.

The smaller-scale Four fills that gap and offers its own design distinctions, like a removable 22-oz water tank that connects to the brewer by a 14- inch-long hose wrapped in a slinky-like matte-black hose and a handblown, smoke —tinted borosilicate glass carafe.

The Ratio’s controls are limited to a single button, with a trio of lights that show the current stage of the brewing process: bloom, brew, and then ready. With just that one button, customization options are, unsurprisingly, limited. A long press tells it you’re making a smaller batch of coffee, so it shrinks the bloom cycle appropriately. After that, it pulse-pours water for two minutes before steadily adding the remainder. You can even swap out the brew basket and carafe for your own dripper and mug.

Like the xBloom and the Aiden, the Ratio Four is not built for speed. But if you’ve ever had a carefully made cup of coffee whose flavors revealed themselves the way they do with wine or whiskey, you know that a little wait can be worth it. Particularly if you don’t have to do any work. Bloomberg

Asia-Pacific countries to leverage AI solutions

REUTERS/DADO RUVIC/ILLUSTRATION

ASIA-PACIFIC (APAC) governments and businesses are expected to continue tapping artificial intelligence (AI) solutions this year to improve their cybersecurity posture and boost efficiency in areas like energy and cloud management, according to software company Hitachi Vantara.

“The region’s rapid urbanization and growing digital economy make it an ideal environment for deploying innovative AI solutions, especially in areas like energy efficiency, hybrid cloud management, and intelligent automation,” Matthew Hardman, chief technology officer for Asia-Pacific at Hitachi Vantara, said in a statement.

“As we look ahead, emerging technologies further enhance AI’s capabilities in APAC, enabling businesses to address localized challenges with unprecedented precision. AI isn’t just a buzzword anymore — it’s a critical driver of sustainability, security, and resilience, helping the region build a future-ready economy.”

Companies in the region have been using AI-powered digital twins or virtual models to optimize energy usage and simulate efficiency improvements before implementation, he said, such as in the case of data centers.

“This approach isn’t just theoretical; retrofitting existing data centers with these technologies is already reducing power consumption to be more energy efficient,” he said.

This comes as Southeast Asia’s data center market is projected to grow by over 5% annually through 2029 to $14.41 billion in value, according to Statista.

The Philippines has also been cited as a potential market for data centers, as 73.6% of its population are internet users, according to digital platform Datareportal.

“This shift will have a massive impact on both sustainability and cost savings,” Mr. Hardman said.

He also noted the rapid adoption of hybrid cloud architectures among Asia-Pacific firms, with businesses looking to balance the flexibility of using public cloud technologies with ensuring the security of their on-site infrastructure.

Using AI-driven management tools along with container orchestration systems allows firms to deploy applications while maintaining data sovereignty, he said.

“As the demand for massive data volumes to train AI grows exponentially, organizations must rethink traditional storage architectures. Object storage solutions accessible via industry-standard protocols provide scalable, cost-effective platforms for managing large-scale data compared to traditional block storage systems,” Mr. Hardman said.

AI solutions are also helping Asia-Pacific governments and firms boost their cybersecurity posture, he added.

“When it comes to cybersecurity, AI is playing a pivotal role in combating rising threats. Advanced threat detection systems using anomaly detection models are enabling real-time responses to cyberattacks, while generative AI (GenAI) is helping businesses simulate threat scenarios to strengthen their defenses. As regulations like Singapore’s Model AI Governance Framework and Indonesia’s data sovereignty laws take hold, AI-powered compliance tools are helping organizations navigate these complexities while safeguarding their operations.”

Meanwhile, AI-driven smart grid technologies are also expected to improve energy management in the region, Mr. Hardman said.

“By integrating machine learning models into grid operations, governments and utility providers can optimize energy distribution, predict demand fluctuations, and seamlessly incorporate renewable sources like solar and wind,” he added.

Small and medium enterprises (SMEs) in Asia-Pacific are also benefiting from AI solutions, Mr. Hardman said.

“From automating customer service with multilingual small language models to optimizing inventory management with predictive analytics, SMEs are leveraging AI to compete at scale.”

The Philippines has about 1.2 million micro, small and medium enterprises, accounting for more than 99% of total businesses, government data showed.

A recent IBM study showed that the Philippines still experiences challenges with AI, with 43% reporting limited use cases, 40% difficulty in integration and scaling, and 37% lacking an AI strategy.

It said that 23% of AI investments by businesses in the Philippines this year will focus on customer experience, 18% on back-office business process automation, and 17% on employee experience and productivity.

Meanwhile, a survey conducted by PwC Philippines in partnership with the Management Association of the Philippines showed that 40% of CEOs in the country said that they have already adopted GenAI.

The survey said 71% of CEOs believe that GenAI will change how their companies create, deliver, and capture value. — B.M.D. Cruz

Trump’s Folly? Greenland for critical minerals is utter nonsense

JENNIFER LATUPERISA-ANDRESEN-UNSPLASH

EVERY FEW YEARS, a craze engulfs the commodity industry: A new and exotic source of mineral supply is about to emerge, solving all the world’s shortages. The list stretches the imagination from the ocean abysses (deep sea mining) to the vastness of space (asteroid mining).

The buzz today is more mundane: Greenland — cold, vast, and, so we’re told, endowed with every mineral the world needs. So large are its riches that US President-elect Donald Trump wants it. Trouble is, the theory is utter nonsense.

As with every tall tale, the story starts from a grain of truth. The island of about 60,000 people, a self-ruling territory of Denmark, has some mineral deposits, some of which are even large. That’s unsurprising. Geologically, the island is an extension of the North American continent, and we know that the US and Canada do enjoy a significant mineral endowment.

But cynical observers should be forgiven a case of déjà vu: The hyperbole around Greenland and commodities has a 50-year long history. Back in the 1970s, the interest was about oil. The craze resurfaced in the early 2000s after oil and iron ore prices surged. Suffice to say the island doesn’t pump a barrel of oil and the miner that planned to develop an iron ore deposit went into bankruptcy.

Now it’s an eagerness to tap “a lot of great natural resources” — in the words of Vice-President-elect JD Vance. But here, it really depends on your definition of “a lot” — certainly, using my definition, it doesn’t qualify. It’s not even close.

A 2023 Danish geological survey identified at least 50 locations with mineral potential. Of them, more than half are north of the Arctic Circle, making their exploitation very hard and expensive, if not impossible. A handful, however, are in the ice-free southern tip of Greenland, opening the door to development. But most of them are small. Of the potentially large, perhaps the most interesting one is the Tanbreez rare earths deposit.

Yet the geological report warns that Greenland has very little chance of developing its commodity deposits due to high production costs. “Greenlandic deposits could become more economically viable in the future,” it says, only if prices were to rise significantly.

Here is where the sales pitch is required. Of course, prices will rise, the bulls say; haven’t you seen that China controls 90% of the world’s rare earth metals, and Beijing could close the tap any day, they add. Yes, I have; I even saw the price of dysprosium, one of the rare earth compounds often quoted as very rare and very important, go parabolic in 2011, during the last rare earth mania. In a few weeks, it went up 800%, only to crash nearly as quickly.

Rare earths are a bit of a misnomer — they are quite abundant. The problem is that rarely are they abundant in a concentration worth mining for. Even when the concentration is high, extracting the elements from the ore is expensive and very polluting. Hence why China controls the market. Not only does the Asian giant have more reserves than anyone else, it also doesn’t mind the environmental cost of the rare earths refineries.

Are the Greenlandic reserves of rare earths large? Not as far as we know. According to the US Geological Survey, considered an authority in the field, the island contains 1.5 million tons. That puts Greenland in the world’s top 10, but well behind the US itself, as well as China, Brazil, Vietnam, India, and Australia. Very likely, mining for rare earths in all of those countries would be easier and cheaper than in Greenland.

What about the geopolitical considerations? Let me put it this way: Rare earths aren’t oil. Or copper; or uranium; or natural gas. In 2023, the total value of the rare earth compounds and metals the US imported was $190 million. The price of rare earth can surge by 50 times and not be more than a blip for the US economy. And at those prices, American companies would find many projects at home before Greenland.

True, if the cost of rare earths like dysprosium was to surge once again — and crucially, stay higher for a long period — perhaps some of the Greenlandic projects would make sense. But one has to assume the most bullish price forecasts — and simultaneously, that climate change will render mining in Greenland a lot easier than today, and that every other nation with rare earths reserves wouldn’t rush to develop their own, crashing the market.

Past performance is no guarantee of future results — but investors should beware of the siren song of the rare earth sector. Look at the VanEck Rare Earth and Strategic Metals exchange traded fund. It’s down nearly 80% since its launch in 2010.

If Greenlandic rare earths aren’t worth the time and money, perhaps other commodities? I don’t think so. Not at current prices, anyhow. Take cobalt, key for the batteries used by Tesla, Inc. and other electric-car companies. It’s hovering close to a 20-year low thanks to Chinese miners, deterring investment everywhere. The same goes for nickel, facing a glut thanks to booming Indonesian output; likewise, iron ore. Perhaps copper has a future, but if prices climb, many other locations would be far more profitable – and offer far more production potential — than Greenland, which has very limited reserves of the reddish mineral. The same applies to more exotic minerals like titanium, tungsten, and vanadium. For all, the potential reserves are equally abundant elsewhere, and at a lower production cost.

If the US is serious about mineral supply, it has better places to flex its diplomatic muscle. The Democratic Republic of Congo is, by far, the most important one — home of huge, proved reserves of copper and cobalt, two minerals far more important than rare earth elements. So are Chile, Peru, Brazil, and Mongolia. Kazakhstan goes into the list too. Sadly, none of them is for sale. But neither is Greenland.

BLOOMBERG OPINION

Yields on term deposits decline as market eyes further BSP cuts

BW FILE PHOTO

YIELDS on the central bank’s term deposits dropped further on Wednesday amid expectations of further rate cuts by the Bangko Sentral ng Pilipinas (BSP).

The BSP’s term deposit facility (TDF) fetched bids amounting to P319.353 billion on Wednesday, above the P240 billion placed on the auction block but slightly lower than the P339.78 billion in bids seen for the P180-billion offer a week ago.

Broken down, tenders for the seven-day papers reached P189.095 billion, higher than the P140 billion auctioned off by the central bank but lower than the P213.661 billion in bids recorded for the P100-billion offer the previous week.

Banks asked for yields ranging from 5.725% to 5.825%, narrower than the 5.715% to 5.8745% band seen a week ago. This caused the average rate of the one-week deposits to decline by 2.1 basis points (bps) to 5.7983% from 5.8193% previously.

Meanwhile, bids for the 15-day term deposits amounted to P130.258 billion, above the P100-billion offering and the P126.119 billion in tenders for the P80 billion in 14-day papers placed on the auction block on Jan. 8.

The two-week tenor offered this week was adjusted from the usual 14-day maturity due to a holiday.

Accepted rates for the tenor were from 5.75% to 5.91%, lower than the 5.84% to 5.97% margin seen a week ago. With this, the average rate for the two-week deposits dropped by 6.44 bps to 5.8675% from 5.9319% recorded in the prior auction.

The BSP has not auctioned 28-day term deposits for more than four years to give way to its weekly offerings of securities with the same tenor.

The term deposits and the BSP bills are used by the central bank to mop up excess liquidity in the financial system and to better guide market rates.

Term deposit yields went down amid expectations of further policy easing by the BSP, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

BSP Governor Eli M. Remolona, Jr. last week said the central bank still has room to continue cutting interest rates as inflation remains manageable, adding that current benchmark borrowing costs remain “restrictive.”

Headline inflation picked up to 2.9% in December from 2.5% in November, the government reported last week. Still, this was slower than the 3.9% print in the same month in 2023 and was within the 2.3%-3.1% forecast of the BSP.

The December rate brought the full-year 2024 inflation average to 3.2%, slower than 6% in 2023 and marking the first time since 2021 that the consumer price index settled within the BSP’s 2-4% annual target.

The Monetary Board has slashed benchmark borrowing costs by a total of 75 bps since it began its easing cycle in August, bringing its policy rate to 5.75%.

Mr. Remolona previously said that while the BSP remains in an easing cycle, 100 bps worth of cuts this year may be “too much” amid inflation concerns. He added that they will continue to bring down benchmark interest rates in “baby steps.”

The Monetary Board will hold its first rate-setting meeting for this year on Feb. 20.

“The BSP TDF average auction yields also declined after the initial implementation of the maximum suggested retail price (MSRP) for imported rice (that) could further support benign inflation,” Mr. Ricafort said.

The Agriculture department had set the MSRP at P58 per kilogram for imported rice with broken-grain content of 5%.

A price ceiling has not yet been set for imported 25% broken rice. The price ceiling is expected to take effect on Jan. 20, initially in Metro Manila. — L.M.J.C. Jocson

Sunlight Air expands fleet

SUNLIGHTAIR.PH

SUNLIGHT AIR announced on Wednesday the addition of new aircraft to its fleet.

“As we enter the new year, we find that there are more growth opportunities that come with the continuous increase in passenger demand,” Sunlight Air Chief Executive Officer Ryna C. Brito-Garcia said in a media release on Wednesday.

Sunlight Air, operated by Sunlight Express Airways Corp., said it procured an ATR 72-600, which is described as a modern and fuel-efficient aircraft.

The ATR 72-600 can seat up to 78 passengers and aligns with the boutique airline’s commitment to environmentally friendly operations, Sunlight Air said.

This addition will further boost Sunlight Air’s fleet as it currently operates three ATR 72-500 planes, it said, adding that it is moving closer to its goal of expanding its existing routes in 2025.

“By increasing flight frequencies and exploring new destinations, the airline aims to solidify its reputation as a trusted choice for regional travel,” Ms. Brito-Garcia said.

Sunlight Air said it is constantly looking to boost its flight frequencies to position the company as a market leader in domestic travel.

Currently, Sunlight Air flies from Clark, Cebu, and Manila to Siargao; San Vicente, Coron, and Busuanga in Palawan; and Caticlan, Aklan; Iloilo; and Cagayan de Oro. — Ashley Erika O. Jose

Tiong Bahru Bakery opens in Manila

LOOKING for a really good croissant in Manila used to be a bit of a challenge (you would have to troop to the mall, or order a batch from a baker friend). Things have changed, and a new player has now come all the way from Singapore.

Tiong Bahru Bakery’s roots are in Singapore’s indie district, which it was named after. Offering French Viennoiseries (a French term for the Austrian pastries they’ve perfected), the bakery has been around since 2012. Its location in Bonifacio Global City’s Verve Residences is its first foray out of Singapore, where they have 21 outlets. “Manila, with its vibrant culinary scene, and deep appreciation for food that brings people together felt like a perfect first home for Tiong Bahru Bakery overseas,” said Tiong Bahru Bakery International General Manager, Matt Mclaughlan in a speech during a preview on Jan. 14.

At the heart of its menu is the classic Croissant — golden and flaky on the outside, with rich buttery aroma and mouthfeel (we’d also like to point out its shiny laminated surface, which baker acquaintances say is hard to achieve). A new batch is baked every two hours to ensure freshness.

“Our signature croissant takes three whole days to make: the combination of fermentation… of folding, of prepping, proofing, and baking to get that delicious, buttery, flaky taste,” said Mr. Mclaughlan in his speech.

We had one along with coffee, and it did taste more buttery and was more yielding (that is, softer and easier to break) than other croissants in the city (though the difference may be imperceptible to many). We do note that the coffee and the croissant were served cold, but we’ll clock this up to first-day jitters. We also had a pain au chocolat, just to round things out, and we were satisfied with the chocolate filling and the excellent flaky pastry. “You either love it now, or you will love (it) in a few minutes,” said Mr. Mclaughlan in his speech.

“We pride ourselves in using these time-honored French backing techniques that hone the craft in true artisanal baking. Every croissant, every loaf, every pastry that you see behind me starts with the finest ingredients and is infused with a deep respect for this tradition,” he continued.

“I’d like to extend my heartfelt gratitude to our partners, Jollibee Foods Corp.,” he said, thus adding another feather to the homegrown global brand’s cap. The same group has the franchises for Panda Express, Yoshinoya, and Burger King in the Philippines, not to mention acquiring the Tim Ho Wan and The Coffee Bean & Tea Leaf brands.

Tiong Bhru Bakery is located at Verve Residences in Bonifacio Global City, Taguig. — Joseph L. Garcia