Philippine inflation eased to a six-month low in June, the Philippine Statistics Authority (PSA) reported this morning.
Preliminary data from the PSA showed headline inflation at 4.1% in June, slowing from the year-on-year rate of 4.5% in May. However, this was still above the 2.5% recorded in June last year.
The latest headline figure is lower than the 4.3% median in a BusinessWorldpoll conducted late last week. Nevertheless, it fell within the 3.9%-4.7% estimate given by the Bangko Sentral ng Pilipinas (BSP) for June.
The June print was also slowest in six months, or since the 3.5% annual rate recorded in December 2020. Prior to the June result, year on year inflation remained unchanged for three straight months at 4.5%.
Year-to-date inflation settled at 4.4%, beyond the BSP’s 2-4% target this year and above the forecast of 4% for the entire year.
Core inflation, which discounted volatile prices of food and energy items, stood at 3%. This was slower than the 3.3% recorded in the previous month, but was steady from the rate recorded in the same month last year.
Core inflation averaged 3.3% so far this year.
“The slower pace in the inflation in June 2021 was primarily due to the lower annual rate of increase in the transport index at 9.6%, from 16.5% in May 2021,” the PSA said in a statement.
The PSA also attributed the easing in June to the slower increase in prices of alcoholic beverages and tobacco at 11.2% from 11.8% in May, clothing and footwear at 1.6% from 1.7%, health at 2.9% from 3.2%, and communication at 0.2% from 0.3%.
Inflation on food items stood at 4.9%, unchanged from May, but still higher compared with the 2.7% posted in June last year.
Meanwhile, the inflation rate for the bottom 30% of income households stood at 4.3% in June, slower than the 4.5% recorded in the previous month, but still faster than the 3% in June 2020.
The inflation rate for the bottom 30% takes into account the spending patterns of this income segment. Thus, its consumer price index differs from that of the average household with the former assigning heavier weights on necessities. — B.T.M. Gadon
Several cities in the Philippine capital region have halted their first-dose vaccination programs as supply from the national government runs out.
Makati City, home to the nation’s main financial district, said the scheduled inoculation of frontline workers receiving the COVID-19 vaccine for the first time won’t push through on Tuesday. It also shut several vaccination sites in malls and schools, the city government said on Facebook.
Paranaque, Caloocan and Valenzuela cities have also stopped first-dose vaccinations as they await for additional supplies, while Malabon and Muntinlupa announced they will no longer entertain walk-ins.
Metro Manila and adjacent provinces account for about two-thirds of the Southeast Asian nation’s economic output. With over a quarter of the nation’s population, vaccination in the capital region is key to boosting domestic demand and reviving the economy after last year’s record slump.
The Philippines will receive about a million AstraZeneca Plc doses from Japan and 170,000 Sputnik V vaccines it ordered from Russia this week, presidential spokesman Harry Roque said on Monday. About 2.87 million Filipinos have been fully vaccinated, less than 3% of its population. — Bloomberg
Meralco officials led by Maita David - Head of Central Business Area, Ricky Joseph Martinez - BC Head of Malate BC, Jerry Lao - Head of Central Distribution Services, Engr. Randy Sadac of Manila Electrical Division, Radius Telecoms President/CEO Exequiel Delgado, Noel Espiritu – Manila Sector Manager, Annette de Ocampo - Maynilad AVP and Government Relations Head, and Radius Telecoms COO Jen Dela Paz pose for photo opportunity during the inauguration of the Manila Mega COVID Field Hospital on June 24, 2021.
Consistent with its support to the country’s fight against COVID-19, the Manila Electric Company (Meralco) energized the Mega Field Hospital at Rizal Park in Ermita, Manila.
In particular, Meralco assisted in the power requirement assessment and facilitated timely energization of the facility to supply the applied load 805 kW for the whole hospital and extended 10 spans of primary line, and installing three (3) 333-kilovolt-ampere transformers in the process.
Meralco’s wholly-owned subsidiary Radius Telecoms Inc. provided 25 Red Fiber lines and modems for reliable internet connectivity to both the facility’s admin and staff and for patients to get in touch with their families while in isolation.
The inauguration was led by the Manila local government through Mayor Francisco “Isko Moreno” Domagoso with the presence of key attendees including Sen. Christopher “Bong” Go, Health Secretary Francisco Duque, Executive Secretary Salvador Medialdea, Deputy Chief Implementer, and BCDA President Vince Dizon, and MMDA Chairman Benjamin Abalos as well as Meralco officials led by Central Business Area Head Maita David, and Central Distribution Services Head Jerry Lao, and Radius Telecoms President and Chief Executive Officer Exequiel Delgado.
With a capacity of 344 beds, the field hospital began receiving COVID-19 patients with mild to moderate symptoms. It is open not only to residents of the City of Manila, but also patients from other cities.
Atty. Ray C. Espinosa, Meralco President, and CEO, underscored Meralco’s efforts and stated, “Going beyond the power and light we deliver, this current crisis calls for us to be beacons of reliability and hope. We are keeping the lights on for our front liners and affected Filipinos, and we are one with the government in overcoming this crisis.”
The Manila Mega Field Hospital is located at the western section of Rizal Park, in front of the drive-thru vaccination site at the Quirino Grandstand.
Meralco has been continually energizing treatment facilities, vaccination centers, and vaccine storage in a bid to support economic recovery.
THE NATIONAL GOVERNMENT’S (NG) outstanding debt breached the P11-trillion mark as of end-May as it increased local borrowings to plug the widening budget deficit, the Bureau of the Treasury (BTr) reported.
Preliminary data from the BTr showed the government’s debt stock inched up by 0.73% to P11.071 trillion as of end-May from its P10.991-trillion level as of end-April.
The debt pile rose by 13% since the year started, after the government borrowed an additional P1.276 trillion.
Year on year, the debt stock jumped by 24.5% from P8.89 trillion as of May 2020.
The increase was largely due to higher domestic borrowings in May, which rose by 1.3% to P7.916 trillion from P7.812 trillion as of end-April. This grew by 31.2% from P6.034 trillion a year ago.
The BTr hiked the volume of securities it issued in the local debt market that month, pushing its outstanding government securities 1.4% higher to P7.376 trillion.
The state’s direct loans from the central bank and other domestic obligations remained steady at P540 billion and P156 million, respectively.
Local outstanding debt accounted for 71.5% of the total debt stock.
Meanwhile, the country’s external debt pile slipped by 0.7% to P3.155 trillion as of May from P3.179 trillion the month prior.
The Treasury said this was due to the government’s settlement of P220 million of its maturing debt, and the impact of peso’s appreciation against the dollar that reduced the value of the debt pile by P28.58 billion.
“These more than offset the P5.24-billion revaluation in the peso value of debt denominated in other currencies such as [euro- and Japanese yen-denominated debt],” the BTr said.
Around P55 billion was added to the government’s foreign debt so far, up 1.8% from P3.1 trillion in end-2020 and by 10.5% from P2.857 trillion as of May 2020.
Broken down, direct loans from foreign lenders totaled P1.369 trillion in May, a tad lower than its value in April.
Outstanding global bonds issued by the government also edged down by 0.6% to P1.787 trillion from P1.798 trillion in April.
This consisted of P1.315 trillion in dollar-denominated bonds, P236.34 billion in euro-denominated papers, P131.2 billion in Japanese yen-denominated bonds, P85.57 billion in peso global bonds and P18.7 billion in Chinese yuan-denominated notes.
The BTr noted that the data were based on the peso’s P47.72 value against the greenback in May, versus the P48.16-per-dollar exchange rate in April.
Total guaranteed obligations of the government also fell by 2% to P426.59 billion as of May from P434.74 billion in the period ending April, and 8.4% lower year on year.
Outstanding local guaranteed debt reached P233 billion as of May, sliding 2.3% from P238.53 billion in April, and 3.2% smaller than its year-ago level.
External guaranteed obligations likewise dipped by 1.3% to P193.58 billion from P196.21 billion in the previous month. Year on year, this was 14% lower.
The government borrows from local and foreign sources to fund its budget deficit seen to widen to 9.3% of total economic output this year. It started ramping up its borrowings last year when the state had to boost spending to support the economy amid a coronavirus pandemic.
Gross borrowings rose by 17% year on year to P1.766 trillion in the five months to May.
The budget deficit narrowed to P200.3 billion in May from P202.1 billion a year ago as the surge in revenues outpaced spending. However, this was nearly five times larger than the P44-billion deficit in April.
Official estimates showed the govern-ment’s debt stock could rise to P11.98 trillion by end-2021. — Beatrice M. Laforga
The Health department said 2.86 million have been fully vaccinated in the Philippines as of July 4. —PHILIPPINE STAR/ MICHAEL VARCAS
By Luz Wendy T. Noble and Beatrice M. Laforga, Reporters
MOODY’S ANALYTICS downgraded its growth forecast for the Philippines this year, as a “sluggish” vaccine rollout may leave it vulnerable to a fresh wave of coronavirus disease 2019 (COVID-19) infections.
It now expects the country’s gross domestic product (GDP) to grow by 4.9% this year, a tad slower than the 5.3% estimate it gave in May. The latest forecast is also more pessimistic than the government’s 6-7% full-year target.
In an e-mail to BusinessWorld, Moody’s Analytics Senior APAC Economist Katrina Ell and Associate Economist Dave Chia said GDP growth this year has remained “relatively low” due to the quarantine restrictions in Manila and the slow national vaccination program.
“We are closely monitoring the performance of domestic demand and the COVID situation, and may adjust the GDP forecast if the outlook becomes more optimistic,” the economists said.
By 2022, they expect the Philippines’ GDP to grow by 7%.
In its latest note titled “Macro Roundup: COVID-19 Keeps Denting Southeast Asia’s Recovery” released on Monday, Moody’s Analytics said a faster vaccination drive will be crucial to support the Philippine economy as outlook is already improving amid lower COVID-19 infections and easing restrictions.
“Declining COVID-19 cases in the Philippines pave the way for its economic recovery as retail activities start to pick up. However, the country needs to step up its vaccination efforts, as the sluggish campaign leaves it vulnerable to fresh resurgences,” the report authored by Ms. Ell and Mr. Chia said.
Moody’s Analytics acknowledged that the situation in the Philippines has improved as cases declined from the peak of 11,000 new cases seen around late March to April.
The Health department reported 5,392 new COVID-19 cases on Monday, bringing the active cases to 51,594.
Based on Bloomberg’s vaccine tracker, it will take 21 months for the Philippines to cover 75% of its population at its average rate of 236,867 jabs per day. As of July 4, 2.86 million have been fully vaccinated in the Philippines, while 8.83 million have received their first vaccine dose.
The government aims to vaccinate 500,000 people daily in Metro Manila, Rizal, Bulacan, Cavite, Laguna, Metro Cebu and Metro Davao to achieve herd immunity in these high-risk areas by end-November. However, delays in the delivery of supplies will affect the rollout.
As restriction measures are gradually eased, analysts said some businesses will benefit but other industries will likely continue to see muted activities.
“Consumer-facing businesses such as food and beverage and broader hospitality services will continue to benefit with the government easing restrictions in Manila, as households are allowed to more freely access goods and services,” Ms. Ell and Mr. Chia said.
“However, hotel and service exports will continue to underperform and will be sluggish to recover as international arrivals remain well below pre-pandemic levels,” they added.
The economy shrank by 4.2% in the fourth quarter. Philippine GDP contracted by a record 9.6% in 2020.
STILL A LAGGARD Meanwhile, investment bank Nomura said the Philippines and Thailand will continue to lag behind Southeast Asian peers in economic recovery this year.
In a virtual media roundtable on Monday, Euben Paracuelles, Nomura’s chief economist for ASEAN, said the country’s economic output is only seen returning to pre-crisis levels by the third quarter of 2022.
Mr. Paracuelles said the Philippines is struggling to recover at a faster rate because of the slow pace of vaccination compared with its peers, as well as the lack of fiscal support from the government.
“If you look at the packages that has been passed by the government, it’s not really that comparable to the rest of the region where you see all kinds of packages being announced from wage subsidies to healthcare spending, and other types of support measures,” he said.
While the second stimulus package worth P205 billion under Bayanihan to Recover as One Act (Bayanihan II) was “not that impactful” to offset the fallout from fresh outbreaks and lockdowns, he noted that underspending still persisted and agencies were not able to fully utilize the funds before the law expired on June 30.
Data from the Budget department showed agencies were only able to spend P141.45 billion from Bayanihan II, five days before the law’s expiration, leaving P63.55 billion of unspent funds.
“Bayanihan II was not really that impactful when trying to provide some offset to the new pressures on growth. This now expires so there’s even less room for them to do more fiscal spending, which I think is really necessary. Other countries were able to provide more sizeable measures and a little bit faster,” Mr. Paracuelles said.
He said it remains uncertain if the government can still pass another stimulus package with Congress on recess until late-July.
The Philippines recorded $30.453 billion in monetary and fiscal stimulus measures so far, which was the fifth-highest coronavirus package among 11 Southeast Asian countries, data compiled by the Asian Development Bank (ADB) showed. The country’s package accounted for 8.62% of its economic output and translated to spending per capita of $281.67.
In April, Nomura slashed its growth forecast for the Philippines to 5.5% this year from 6.8% previously.
Mr. Paracuelles said infrastructure spending will have to provide the much-needed boost for the economy, especially ahead of the national elections in May 2022.
“That’s going to help the recovery somewhat, but what that also means it will increase importation and therefore the current account deficit will widen in the second half, which makes the country relatively vulnerable to capital outflow risks,” he warned.
Meanwhile, Mr. Paracuelles said they projected inflation to average at 3.9% by year’s end on expectations that the monthly print will start easing after two to three more months of breaching the central bank’s 2-4% target.
THE ANTI-MONEY Laundering Council (AMLC) told covered entities to urgently follow freeze order processes, as the Philippines needs to show tangible progress in effectively implementing tighter laws on anti-money laundering and counter-terrorism financing (AML/CTF) to be able to exit the Financial Action Task Force’s (FATF) “gray list.”
The AMLC advisory comes over a week since the country was added to jurisdictions placed under the FATF’s increased monitoring, specifically the implementation of AML/CTF measures.
AMLC Executive Director Mel Georgie B. Racela said urgent compliance to freeze orders will be closely monitored by the FATF.
“Covered persons’ mandate to urgently implement freeze orders as required in the 2018 Implementing Rules and Regulations of the Anti-Money Laundering Act of 2001, is a key component in ensuring that the Philippines sufficiently addresses the International Co-operation Review Group (ICRG) action plan items, particularly those relative to money laundering and counter-terrorism financing investigations; and targeted financial sanctions that would effectively deny funds to designated terrorists,” Mr. Racela said in a Viber message on Sunday.
The AMLC told covered persons to strictly observe the period for filing of returns and to consider the start of the 20-day effectivity of freeze orders from the time the accounts are actually frozen.
According to the AMLC advisory, some covered persons only implement freeze orders a few days or weeks before the expiry of the period prescribed by the court.
The AMLC said some covered persons only submit returns for related accounts when the six-month effectivity of a freeze order is almost at its expiry.
Based on implementing rules and regulations, written returns with pertinent details on an account should be submitted to the AMLC and the Court of Appeals (CA) within 24 hours since the account was frozen.
A freeze order covers a main account, which the AMLC and CA determined there is probable cause that it is related to money laundering and terrorist financing. On the other hand, related or materially linked accounts are determined by covered persons in compliance with the freeze order.
Mr. Racela said there could be serious repercussions from the delayed implementation of freeze orders against designated persons and suspected money launderers.
“If freeze orders are not immediately implemented, the accounts not frozen can be disposed of by the owner, thwarting the AMLC’s efforts in building its case and eventually filing civil forfeiture proceedings and/or prosecuting the owner. Worse, the money in the accounts can be further used in the commission of unlawful activities and/or money laundering,” Mr. Racela said.
The late implementation of a freeze order as well as delayed submission or non-filing of returns are considered as money laundering offenses that could result in penalties for uncooperative covered persons, the AMLC said.
The agency also stressed that failure to immediately freeze accounts upon receipt of a freeze order is considered a grave violation under Republic Act 9160 or the Anti-Money Laundering Act of 2001 (AMLA), as amended.
The late implementation of a freeze order and the subsequent delay in the filing of returns are also considered money laundering offenses that could be punishable with imprisonment of four to seven years and a fine of not less than P1.5 million, the AMLC said. Covered persons that fail to comply may face penalties from P25,000 to P500,000 per violation, it added.
In case the delayed implementation of a freeze order involving accounts in relation to the Terrorism Financing Prevention and Suppression Act of 2012 and the Anti-Terrorism Act of 2020, the action could be considered as dealing directly or indirectly with the designated persons. AMLC said this could be punishable with reclusion temporal in its maximum period of 20 years to reclusion perpetua (up to forty years) and a fine of P500,000 to not more than P1 million.
Meanwhile, submitting late written returns or incomplete information related to a freeze order are considered as lighter offenses, the AMLC said. A complete written return should include the account number; names of account holder/s; amount in an account at the time it was frozen; all relevant information pertaining to the nature of an account or property; any information on related accounts or property related to the frozen asset, and the time when a freeze order took effect.
Under the Republic Act 11521 which further tightened the AMLA, covered persons were expanded to include Philippine offshore gaming operators and service provides as well as real estate brokers and developers.
In January, the Bangko Sentral ng Pilipinas (BSP) ordered lenders to submit their reports on accounts that have links to the Communist Party of the Philippines (CPP), the New People’s Army (NPA), and Islamic extremist groups following freeze orders issued by the AMLC.
To recall, Republic Act 11521 was enacted into law on Jan. 29, only days ahead of the Feb. 1 deadline set by the FATF for the country to show effective implementation of tighter AML/CFT laws. Republic Act 11479 or the controversial Anti-Terrorism Act of 2020 took effect in July 2020.
BSP Governor and AMLC Chairman Benjamin E. Diokno is hopeful that the country will be able to show its progress and leave the gray list on or before January 2023. — Luz Wendy T. Noble
Many firms laid off workers in Metro Manila when nearly all economic activity was halted during the strictest lockdown in the second quarter of 2020. — PHILIPPINE STAR/ EDD GUMBAN
MORE WORKERS were laid off than were hired among large Metro Manila firms during the second quarter last year at the height of the strictest lockdown, Philippine Statistics Authority (PSA) data released on Monday showed.
In its latest Labor Turnover Survey, the PSA said labor turnover in the National Capital Region (NCR) declined by 7.6% in the second quarter last year, worse than the -1.4% in the preceding three-month period and a reversal of the 1.1% expansion posted in the second quarter of 2019.
The latest turnover rate is equivalent to a reduction of 76 workers for every 1,000 persons employed in these establishments during the period.
The labor turnover rate is the difference between the rate of hiring (accession) and the rate of job termination or resignation (separation).
“It’s difficult to find other reasons for the decline in labor statistics aside from the pandemic,” University of Asia and the Pacific Senior Economist Cid L. Terosa said in an e-mail.
“Firms were unprepared for a crisis of this magnitude. I would say that the secondary reasons include the lack of business resiliency and adaptability due to below-par business continuity planning, risk analysis, and crisis management,” Mr. Terosa added.
To recall, the government placed Luzon under an enhanced community quarantine in March 2020 to prevent the spread of coronavirus disease 2019 (COVID-19). Unemployment soared to 10.3% last year from 5.1% in 2019.
PSA data also showed the rate of accession – which represents hiring by employers to either replace former employees or expand their workforce – stood at 4.4% in the second quarter, lower than the 9.3% in the previous quarter.
The rate of separation stood at 12%, up from the first quarter’s 10.7%.
Of the employer-initiated separations, 65.8% were attributed to the COVID-19 pandemic that led to these workers being temporarily laid-off or placed on floating status. Other primary reasons for termination cited in the survey include “project completion/end of contract” (12.4%) and “retrenchment/downsizing” (10.2%).
Meanwhile, resignations account for the majority of employee-initiated separations at 84.9%, followed by absence without leave (12.7%) and retirement (2.5%).
Among those who resigned, 25.2% were hired by another company while 23.3% and 12.2% cited “personal issues” and “family considerations,” respectively. Other reasons included the pandemic (10.7%), further studies (3.4%), work abroad (1.9%), and health issues (1.5%).
Among the major economic sectors, services posted the largest net negative labor turnover at 8.1%, following an accession rate of 5% and separation rate of 13%.
Likewise, negative job creation rates were observed in industry (-5.1%) and agriculture, forestry and fishing (-0.8%). For industry, its separation rate of 6.7% outpaced its accession rate of 1.7%. Likewise, agriculture’s 1.6% separation rate exceeded its accession rate of 0.7%.
The PSA survey also showed 63,888 job vacancies in the second quarter, fewer than the 85,426 unfilled positions in the first quarter.
These vacancies were highest in the services sector, which accounted for 91.3% of the total, or 58,307 openings. The share of the industry sector was 8.6% (5,522) while that of agriculture, forestry and fishing was 0.1% (58).
By occupation group, employers mostly looked to fill openings for clerical support workers (43.9% of job vacancies); professionals (22.1%); technicians and associate professionals (13.4%); managers (12.3%); and craft and related trades workers (4.3%).
The pandemic affected many establishments’ daily operations during the second quarter, with 16.9% seeing a decline in sales. Respondents also cited temporary closures (10.2%), financial/income loss (8.5%), lack of manpower (7.7%), and limited customers (7.5%).
More than half of the firms surveyed implemented “alternative work arrangements,” while others complied with health and safety protocols (22.1%), and provided shuttle services for employees (5.8%).
OUTLOOK Employers Confederation of the Philippines President Sergio R. Ortiz-Luis, Jr. said in a phone interview that labor conditions would likely improve, but noted the extent of recovery will differ by firm or industry depending on the nature of their operations as well as their capability to observe safety protocols.
For University of the Philippines Professor Emeritus Rene E. Ofreneo, reopening the economy does not necessarily lead to more hiring and fewer separations, explaining that some industries are “primed to go up” such as construction firms while other industries such as tourism “remain weak and sluggish,” he said in an e-mail.
Asked on when jobs figures would rebound to pre-pandemic levels, Mr. Ofreneo said “maybe 2022 or even beyond.”
In a separate e-mail, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa is not optimistic on the prospects of the labor market.
“[W]e can expect job attrition to remain elevated with replacement not likely to offset job losses due to business struggles or outright closures,” he said.
The 2020 labor turnover survey covering the first and second quarters involved 1,206 Metro Manila-based establishments with 20 or more employees. The survey was conducted from August to October 2020. – Abigail Marie P. Yraola
2GO Group, Inc. anticipates a spike in travel demand in the second half of the year as tourist destinations reopen amid the vaccine rollout.
“We understand the public’s yearning to travel post-pandemic, especially from younger generations who are willing to travel sooner rather than later,” 2GO Assistant Vice-President Blessie Cruz said in an e-mailed statement on Monday.
The company encouraged customers to “firm up” their travel plans in the second half of 2021, “as domestic tourism reopens and more locals are getting vaccinated against the COVID-19 (coronavirus disease 2019).”
To recall, the Philippine tourism industry’s contribution to the economy plunged to its lowest level in at least two decades in 2020.
Preliminary data compiled by the Philippine Statistics Authority showed tourism’s direct gross value added accounted for 5.4% of gross domestic product (GDP) last year, down from 12.8% of GDP in 2019.
“Admittedly, a setback in an industry that was flourishing before the COVID-19 pandemic, the dismal figures reflect the gargantuan challenge that the DoT (Department of Tourism) and the entire tourism industry are faced today,” the Tourism department said in a statement.
2GO also introduced on Monday its “Unli-Trip” offering to Boracay, Cebu, and other local destinations.
“Starting today until July 15, 2021, passengers can avail Unli-Trip tickets for sailing on Sept. 1 to Dec. 31, 2021. The all-in rate of P1,059 with a base fare of P299 is applicable to Super Value Class and Tatami accommodations, inclusive of 50kg baggage allowance, surcharge, insurance, and exclusive of meals,” it said.
“Passengers can book their travel tickets in all 2GO retail outlets nationwide. Meanwhile, a service fee is charged on top of the rate when tickets are bought from authorized agents,” it added.
2GO’s promo covers all its destinations from Batangas to Caticlan and Roxas, including Manila to Bacolod, Cagayan de Oro, Cebu, Coron, Dumaguete, Iloilo, Puerto Princesa, Butuan, Iligan, Ozamiz, Zamboanga, and vice versa.
The Tourism department said that “for the next two years, the Philippines will be positioned as a ‘safe, fun, and competitive destination’ rooted in strong partnerships with communities and visitors.”
“This will be achieved by developing and marketing portfolio of products that harness the natural and cultural endowments to benefit the present and future tourism generation,” it added. — Arjay L. Balinbin
PETRON Corp. will be filing a registration statement with the Securities and Exchange Commission (SEC) for the shelf registration of up to P50-billion fixed-rate bonds, the oil company told the stock exchange on Monday.
Petron said the bonds will be offered to the public in tranches, with the first offering and issuance worth up to P18 billion.
It will file for the registration statement, prospectus, and offer supplement with the SEC, as well as a listing application with the Philippine Dealing & Exchange Corp.
The executive committee of its board of directors gave the company a go signal in a meeting held on Monday.
The committee also greenlighted the assignment of BDO Capital & Investment Corp. as the sole issue manager.
It also approved of the appointment of BDO Capital, China Bank Capital Corp., Philippine Commercial Capital, Inc., PNB Capital and Investment Corp., and SB Capital Investment Corp. as joint lead bookrunners and joint lead underwriters, as well as other banks that may be invited for the issuance of the first tranche of the bonds.
On Monday, shares of Petron at the stock exchange went up by 7.78% or 26 centavos to close at P3.60 each. — Keren Concepcion G. Valmonte
CEBU Landmasters, Inc. (CLI) recorded a 13% growth in sales to P5.2 billion in the second quarter, the company disclosed on Monday, calling its performance a signal to future income streams.
“Our robust sales performance indicates CLI’s income streams in the near future. We have been working hard for this kind of growth trajectory,” Jose R. Soberano III said, referring to the company’s growth target of 15% to 20%.
In the same period last year, the Cebu-based property developer’s sales reached P4.6 billion.
For the first six months of the year, Cebu Landmasters recorded a 14% increase in reservation sales to P8.5 billion from 7.4 billion as housing demand was sustained in the Visayas-Mindanao, or Vis-Min, region.
The company launched six projects during the six-month period in Ormoc, Cebu, and Iloilo. Its Velmiro Heights project in Cagayan de Oro is now 83% sold, while its Mandtra Residences in Cebu is 82% sold out.
In Iloilo City, its premium Terranza Residences sold out 81% of its inventory in three months from April.
Its projects in Cebu accounted for 29% of its sales, Iloilo developments contributed 27%, and Cagayan de Oro made up for 20% of the sales, while sustained sales from Davao, Bacolod, Dumaguete, Bohol, and a new expansion area in Ormoc accounted for the balance.
Cebu Landmasters said its economic housing offers accounted for 41% of the sales in the first half of the year, while the mid-market segment made up for 38%, and sales from its high-end developments accounted for 21%.
The company is expecting its momentum to be sustained for the rest of the year “with fresh inventory to be launched” using its existing land bank.
“Meanwhile, land purchases in key growth areas to secure a new pipeline of revenue streams are on the drawing board and are expected to be closed in the coming months,” the property developer said.
Stocks of Cebu Landmasters at the local bourse were up by 1.35% or five centavos on Monday, closing at P3.75 apiece. — Keren Concepcion G. Valmonte
LOGISTICS and supply chain management integrator Locad is looking to strengthen logistics infrastructures in the Philippines after it raised $4.9 million in seed funding.
“With this funding, Locad is set to strengthen the logistics infrastructures in the Philippines and in Southeast Asia and provide businesses with top-of-class service in e-commerce fulfillment,” Locad Chief Executive Officer and Co-Founder Constantin Robertz said at a virtual press briefing.
Venture capital company Sequoia Capital India’s Surge led the seed round with participation from Antler, Febe Ventures, Foxmont, Global Founders Capital, Gokongwei Family, and Hustle Fund.
Locad will use the investment to expand its platform and fulfillment network.
“Many vendors, producers, and sellers are migrating to digital services but are still hampered in delivering their products to their customers,” Mr. Robertz said. “They also lack infrastructure, resources, and experience in managing both online services and their own supply chain.”
Mr. Robertz noted the e-commerce sector faces several challenges, including long delivery periods, delays in shipping, inability to deliver to far locations, high shipping costs, lack of storage space, and irreconcilable inventory levels.
He said Locad can simplify e-commerce logistics through its “distributed and flexible” warehousing network, all-in-one platform for managing multiple stores and inventory pools, and automated order fulfillment.
Locad was founded in Manila in October last year. It also has offices in Australia, Hong Kong, and India.
The company said its mission is to “level the playing field in direct-to-consumer commerce by giving brands small and large access to an integrated, distributed and flexible supply chain network that is simple yet scalable.” — Arjay L. Balinbin
