Inflation trend turns friend for outperforming Philippine bonds

June 17, 2021 | 9:47 am

Philippine bonds have been racing ahead this quarter and may soon be getting another shot of turbo power. This time from cooling inflation.

The consumer-price index looks to have passed its peak after dropping back to 4.5% in the last three months from its high of 4.7% in February. There are a bevy of reasons to expect it will head even lower in the second half, including a sluggish economy, the impact of COVID-19, and the waning of the low-base effect.

Philippine bonds have already returned 3.51% this quarter in dollar terms, beating all their emerging Asian peers apart from Indonesia, according to data compiled by Bloomberg. Yields on 10-year government debt, which are more sensitive than shorter maturities to the inflation outlook, dropped to 3.85% this week from as high as 4.49% in March.

“The outlook for Philippine bonds hinges on inflation and economic recovery prospects, with inflation to potentially begin easing in June or July and to dip further to the 2-to-3% level starting in November,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corp. in Manila. “The downward correction in local bond yields will remain intact.”

Demand for the nation’s bonds was further underpinned this month as the International Monetary Fund cut its forecast for Philippine economic growth to 5.4% from 6.9%, and said the balance of risks is to the downside as the full impact of the pandemic may not yet have become manifest.

LAGGING BEHIND

One of the major negatives for the economy is slow vaccination rates. To date, just 1.8% of its total population of about 110 million has been fully vaccinated, compared with 2.6% in Thailand, 4.5% in Malaysia and 4.4% in Indonesia, data compiled by Bloomberg show.

The central bank is widely expected to remain accommodative, another positive for bond holders. The monetary authority will only start to raise interest rates in the final quarter of next year, a quarter behind Malaysia and Indonesia, according to the median estimate of economists surveyed by Bloomberg.

The improving inflation dynamics are already starting to lure local buyers further out along the yield curve. A 10-year sale this week drew a bid-to-cover ratio of 2.4 times, up from just 1.8 times in March when inflation fears were at the peak, and the strongest demand since February last year.

Cooling inflation may have another positive impact for bonds down the road, according to Rizal Commercial’s Ricafort. If consumer prices continue to stabilize, the central bank may cut the reserve requirement ratio for large banks from the current 12%, he said. That would add additional liquidity into the banking system that may find its way into the debt market.

All this isn’t to say there aren’t risks out there too. Like all global bond markets, Philippine sovereigns face a big challenge from expectations the Federal Reserve will start to trim back debt purchases. In the key metric of inflation though, there is a growing positive that looks set to keep peso bond yields firmly anchored. — Bloomberg

Shakey’s to hold annual stockholders’ meeting on July 15

June 17, 2021 | 7:00 am

Notice of Annual Stockholders’ Meeting

Notice is hereby given that the Annual Stockholders Meeting will be held on Thursday, July 15, 2021 at 8:30 in the morning.

The agenda for the said meeting shall be as follows:

Call to Order
Secretary’s Proof of Due Notice of the Meeting and Determination of Quorum
Approval of the Minutes of the Stockholders’ Meeting held on July 15, 2020
Management’s Report
Ratification of Acts of the Board of Directors and Management During the Previous Year
Election of Directors (including Independent Directors)
Appointment of External Auditor
Other Matters
Adjournment

A brief explanation of the agenda items which require stockholders’ approval are provided on the Information Statement. The Information Statement and Annual Report will be uploaded to the Corporation’s website https://www.shakeyspizza.ph/and PSE EDGE.

In light of current conditions and in support of the efforts to contain the outbreak of COVID-19, stockholders may attend the meeting and vote via remote communication only.

Stockholders should pre-register at this link:
https://www.shakeyspizza.ph/investors/register fromJune 22, 2021 to June 30, 2021.

Upon registration, Stockholders shall be asked to provide the information and upload the documents listed below (the file size should be no larger than5MB):

A. For individualStockholders:

Emailaddress
First and LastName
Birthdate
Address
MobileNumber
Phone Number
Current photograph of the Stockholder, with the face fullyvisible
Stock Certificate Number and number of shares held by the stockholder
Valid government-issuedID
For Stockholders with joint accounts: A scanned copy of an authorization letter signedbyallStockholders,identifyingwhoamongthemisauthorizedtocastthe vote for the account

B. For corporate/organizationalStockholders:

Emailaddress
First and LastName of stockholder
Address
MobileNumber
Phone Number
Stock certificate number and number of shares held by the stockholder
Current photograph of the individual authorized to cast the vote for the account (the “AuthorizedVoter”)
Valid government-issued ID of the AuthorizedVoter
A scanned copy of the Secretary’s Certificate or other valid authorization in favor of the Authorized Voter

Stockholders who will join by proxy shall download, fill out and sign the proxy found in https://www.shakeyspizza.ph/investors/register.Deadline to submit proxy forms is on June 30, 2021.

All registrations shall be validated by the Corporate Secretary in coordination with the Stock Agent. Successful registrants will receive an electronic invitation via email with a complete guide on how to join the meeting and how to cast votes.

Only stockholders of record as of the close of business on June 10, 2021are entitled to notice and to vote at the meeting.

MARIA ROSARIO L. YBANEZ
Corporate Secretary

IMF slashes PHL growth outlook anew

June 17, 2021 | 12:34 am

A recent wave of new coronavirus infections likely slowed the Philippine economy’s recovery this year. — PHILIPPINE STAR/ MICHAEL VARCAS

By Luz Wendy T. Noble, Reporter

THE International Monetary Fund (IMF) sharply cut its growth projection for the Philippines this year, after a fresh wave of coronavirus disease 2019 (COVID-19) infections slowed the economy’s recovery.

Thomas Helbling, division chief of IMF’s Asia Pacific Department, said the Philippine economy is now forecast to grow by 5.4% this year, lower than its previous 6.9% projection, after the reimposition of tighter lockdown measures in Metro Manila and nearby provinces in late March.

The multilateral lender’s new gross domestic product (GDP) growth projection is also less optimistic than the 6-7% target set by the government for this year.

“The slowing in the recovery in the first half is mostly due to the second wave of the pandemic which peaked in April and necessitated some stricter quarantine measures and has also weighed on confidence. But now, hopefully, the second wave should be on the way out,” Mr. Helbling said at a virtual briefing where he discussed the preliminary findings of the IMF’s 2021 Article IV consultation mission that concluded earlier this month.

Restrictions have gradually been eased in the Philippine capital and adjacent provinces as the number of new COVID-19 cases has declined from the peak.

“The economy is recovering gradually as quarantine measures are eased. The recovery that began in the third quarter of 2020 should gain momentum,” Mr. Helbling said, citing the easing of quarantine measures, the vaccination campaign and macroeconomic policy support.

However, downside risks to the growth outlook include the possible resurgence of COVID-19 cases, and delays in the vaccination rollout due to lack of supply, he said.

“Risks of the virus resurgence will remain high until a sufficiently high proportion of the population is vaccinated,” Mr. Helbling said.

The Health department reported 5,414 new COVID-19 infections on Wednesday, bringing the number of active cases to 56,170. However, a spike in new cases has been reported in provinces.

Government data showed the Philippines had administered two doses of COVID-19 vaccines to 1.88 million people as of June 13. The government is targeting to inoculate 70 million Filipinos against COVID-19 this year.

REBOUND IN 2022
For 2022, the IMF raised its GDP forecast to 7% from the previous projection of 6.5%.

“The core of the forecast is that the health situation improves which will allow for economic reopening and also build confidence…. More businesses will increase activity, there will eventually be more investments including from the government side as restrictions are lifted, then you will have the multiplier effect,” Mr. Helbling said.

The IMF official said monetary policy should remain accommodative for the recovery to take hold.

“While the recent spikes in inflation should be closely monitored, the present monetary policy setting is appropriate as the current inflation pressure appears to be temporary and is likely to taper off in the second half of the year,” he said.

The IMF expects inflation to reach 4.2% this year, beyond the 2-4% target and the 3.9% forecast of the Bangko Sentral ng Pilipinas (BSP). Headline inflation is expected to ease to 3% by 2022.

Mr. Helbling said the government should utilize its fiscal space to support the needs of vulnerable groups affected by the lockdown, as well as to strengthen the healthcare sector.

“Priorities would still be to provide support to vulnerable households, and businesses hard hit. And then of course, really center of fiscal support should be the healthcare sector including the vaccination,” he said.

Mr. Helbling said the government’s infrastructure push will also be essential to recovery, as it will create much-needed jobs.

REFORMS
While the country has made “important progress” in terms of tax reform, digital payments, cutting red tape, and climate mitigation and adaptation, the IMF said more reforms are needed to ensure the country can reinvigorate the investment climate and return to pre-pandemic growth rates.

“Sustained efforts will be needed to reduce restrictions on foreign investment, fast-track the rollout of the national ID, scale up social protection, strengthen healthcare and education, and implement climate change commitments,” Mr. Helbling said.

The proposals to amend the Public Service Act (PSA), the Foreign Investments Act of 1991 (FIA), and the Retail Trade Liberalization Act of 2020 (RTLA) have been certified as urgent by President Rodrigo R. Duterte.

The amendments to the PSA and the FIA are pending in the Senate, while a Bicameral Conference Committee will still hammer out the final version of the RTLA amendments.

“We’re working with the legislature through the LEDAC (Legislative- Executive Development Advisory Council) on those priorities,” Finance Secretary Carlos G. Dominguez III said in a Viber message to reporters.

Senator Vicente C. Sotto III in a WhatsApp message said the discussions on the RTLA is already “in advance stages” and “will [be] passed upon resumption [of the session].”

Congress will resume session on July 26.

The IMF also warned the country should continue to strengthen its regulations against money laundering and terrorism financing to avoid being “gray listed” by the Financial Action Task Force.

Tourism contribution to GDP lowest in at least 2 decades

June 17, 2021 | 12:33 am

Many tourism-related businesses have been affected by the strict quarantine restrictions implemented amid the coronavirus pandemic. — PHILIPPINE STAR/ MICHAEL VARCAS

By Ana Olivia A. Tirona, Researcher

THE TOURISM industry’s contribution to the economy plunged to its lowest level in at least two decades in 2020 amid the ongoing coronavirus disease 2019 (COVID-19) pandemic, Philippine Statistics Authority (PSA) data released on Wednesday showed.

Preliminary data compiled by the PSA showed tourism’s direct gross value added (TDGVA) accounted for 5.4% of gross domestic product (GDP) in 2020, down from 12.8% of GDP in 2019.

This was the lowest in at least 20 years based on available data dating back to 2000. The last time the sector posted similar figures were in 2000 and 2002 when it contributed 5.6% to the country’s GDP during those years.

Measuring the tourism-related value created by various industries, the country’s TDGVA was estimated at P973.31 billion at current prices, down 61.2% from P2.51 trillion a year earlier.

The decline in 2020 snapped the sector’s 11 straight years of growth, 10 of which were in double digits.

The TDGVA indicator is based on the results of the Philippine Tourism Satellite Accounts report, which the PSA compiles from the Department of Tourism (DoT).

“The drop of tourism’s share in the GDP was to be expected considering that tourism has been virtually inactive since mid-March of 2020. This was a shame as we were anticipating in further increasing the industry’s share based on the growing interest in the Philippines as a destination,” said Tourism Congress of the Philippines (TCP) President Jose C. Clemente III in a Viber message.

John Paolo R. Rivera, associate director of the Dr. Andrew L. Tan Center for Tourism at the Asian Institute of Management (AIM), noted that prior to the pandemic, the country’s tourism sector has been averaging a 10% growth, similar to growth seen in remittances.

“[However,] the restricted movement of people, border closures, and quarantine protocols halted travel and tourism. The entire value chain of tourism was disrupted,” he said in an e-mail.

Domestic tourism expenditures, which cover spending of resident visitors within the country either as a domestic trip or part of an international trip, plunged 82.3% to P556.89 billion in 2020 from P3.14 trillion in 2019.

Meanwhile, tourism expenditure by non-residents amounted to P132.59 billion, falling 77.9% from the previous year’s P600.08 billion.

Compared with the country’s total exports, the share of inbound tourism expenditure was 2.9% in 2020 versus the 10.8% share in 2019.

Employment in the tourism industries was estimated at 4.68 million in 2020, or 11.9% of total employment. This was lower than the 5.72 million employed in the sector in 2019, or 13.6% of the working population.

On an absolute basis, tourism employment was lowest since the 4.56 million in 2012. Relative to the total working population, this was lowest since the 11.7% in 2011.

OUTLOOK
Mr. Clemente said that they do not expect the sector to return to pre-pandemic levels “until 2023 or 2024.”

“Projections are hard to give at the moment due to the fluid nature of the pandemic and with so many factors in play as well. It’s anyone’s guess right now,” he said.

Mr. Clemente said the TCP, along with other tourism-related organizations and the DoT, has been formulating market strategies to reflect emerging trends in travel that came about as a result of the pandemic.

“We have also been lobbying for the gradual reopening of the tourism industry to fully vaccinate tourists subject to health guidelines,” Mr. Clemente said.

“[W]e are optimistic that tourism will bounce back as our markets have indicated the willingness of people to travel to the Philippines once we can reopen safely,” he added.

Mr. Rivera noted the government’s financial and nonfinancial assistance to tourism enterprises and the “slow and calibrated” opening of tourism and the economy in general.

Among the assistance provided to the sector include the cash aid under the COVID-19 Adjustment Measures Program (CAMP) for affected tourism workers. In May, the Department of Labor and Employment reported that it has already given out P2.6 billion worth of CAMP assistance to over 520,000 tourism workers.

Another is the COVID-19 Assistance to Restart Enterprises for Tourism Rehabilitation and Vitalization of Enterprises and Livelihood program (CARES FOR TRAVEL), of which P6 billion in loans were reserved for tourism enterprises. The program is part of the Bayanihan to Recover as One Act (Bayanihan II).

“Forecasting tourism recovery is dependent on the rate at which the Philippines is vaccinating…. It is definite that domestic tourism will recover first when travel restrictions are lifted. Foreign tourism will follow once borders have been opened again,” Mr. Rivera said.

“Once herd immunity is achieved and the economy can be opened, tourism will naturally follow,” he said.

DoF firm on keeping stimulus at P173B

June 17, 2021 | 12:32 am

Carlos-Dominguez-Bloomberg — FINANCE SECRETARY CARLOS G. DOMINGUEZ III — SEONGJOON CHO/BLOOMBERG

FINANCE Secretary Carlos G. Dominguez III said the government can only provide P173 billion in stimulus funds this year, as it is unsustainable to have the fiscal deficit exceed 9.3% of gross domestic product (GDP).

“If we are going to have another round of Bayanihan stimulus package this year, the economic team will work with Congress on looking for funding sources to ensure that it will not further widen our deficit,” Mr. Dominguez told reporters via Viber on Wednesday.

“It will be very unsustainable if we will have a fiscal deficit higher than what we estimated this year,” he said separately in a Senate hearing on Tuesday, as lawmakers consider a third stimulus package.

The economic team capped this year’s budget deficit at 9.3% of GDP.

Mr. Dominguez said they are “internally looking for the sources” to finance at least P173 billion of the proposed Bayanihan III. He said this package should be aimed at combating poverty and hunger, after the pandemic dealt a heavy blow on poor families.

Last year, the government allocated P275 billion for relief measures under Republic Act No. 11469 or the Bayanihan to Heal as One Act (Bayanihan I), followed by a second package worth P160 billion.

The House of Representatives passed House Bill 9411 or the Bayanihan to Arise as One Bill (Bayanihan III) which will provide more than P400 billion to help unemployed and hungry Filipinos amid a coronavirus pandemic.

Senator Juan Edgardo M. Angara on Wednesday said the Senate will tackle the third stimulus package when session resumes on July 26.

“Well the Bayanihan II expires at the end of this month. So siguro when Congress resumes, we can hear the different measures. It’s the right time to have hearings on Bayanihan III,” Mr. Angara, chair of the Senate Committee on Finance, said at the Kapihan sa Manila Bay. “So end of July, mag-hearing tayo diyan.”

Meanwhile, Mr. Dominguez said they will remain open to Bayanihan III if lawmakers can identify other potential revenue-generating measures.

However, he said the Department of Finance (DoF) is not proposing any tax hikes to boost revenues, but instead looked for savings from the 2020 budget and asked state-run firms to increase their dividend remittances to P47.17 billion this year.

As of end-May, government-owned and -controlled corporations remitted P31.38 billion to the National Government.

FISCAL SPACE
The government faces growing fiscal constraints as the coronavirus pandemic persists.

Under National Budget Memorandum No. 141 published on Wednesday, the Department of Budget and Management (DBM) said the fiscal space is projected to shrink to P329.8 billion next year, or equivalent to 6.6% of the proposed P5.024-trillion 2022 budget.

This is drastically lower than the average fiscal space worth P714.4 billion each year from 2017-2021. The DBM identifies these excess funds to fund new and expanded programs every year.

More than half of next year’s budget or P2.743 trillion will be earmarked to ongoing programs and projects while 38.8% or P1.951 trillion will be allotted for automatic appropriations, which includes allocations to local government units, the National Disaster Risk Reduction and Management Fund, and the Contingent Fund.

DBM Secretary Wendel E. Avisado asked line agencies to “focus on the more pressing priorities” in crafting their budget proposals because of the limited fiscal space next year.

The government released P653.4 billion for its pandemic response as of April 15, according to the DBM. — Beatrice M. Laforga with inputs from Vann Marlo M. Villegas

Building material price growth eases in May

June 17, 2021 | 12:31 am

Infra-Construction-worker — PHILIPPINE STAR/ MICHAEL VARCAS

THE GROWTH in retail prices of construction materials in the National Capital Region (NCR) eased in May, the Philippine Statistics Authority (PSA) said on Wednesday.

Data from the PSA showed the NCR construction materials retail price index, which measures changes in the average retail prices of construction materials in the region, registered an annual growth of 1.2% in May, a tad slower than the 1.3% logged in April.

May’s preliminary result was driven by slower pickup in prices of carpentry materials (1.5% from 1.8% in April) and masonry materials (1.5% from 1.6%).

The year-on-year growth in other commodities remained unchanged when compared with the previous month: tinsmith materials (1.8%), painting materials and related compounds (0.9%), and plumbing materials (0.7%).

On the other hand, the indices for miscellaneous materials and electrical materials showed faster annual growth with 1.5% and 0.8%, respectively, from 1.2% and 0.5% in April.

In an e-mail, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa attributed the slight easing of prices in May to the stoppage of some construction activities in April when stricter lockdown measures were implemented in Metro Manila and adjacent provinces.

The so-called NCR Plus was placed under an enhanced community quarantine (ECQ) from March 29 to April 11 amid a surge in coronavirus disease 2019 (COVID-19) cases. This was later relaxed to a more lenient modified ECQ from April 12 to May 14.

“Given expectations for faster economic growth and a resumption of construction activities, we can expect the index to accelerate in the coming months,” Mr. Mapa said.

“On top of demand dynamics, we are noticing a gradual uptick in global prices for commodities due to supply bottlenecks, a container shortage and the acceleration of growth in China and the US. Thus, we can expect construction materials to see an uptick in prices in the coming months with both the domestic and global economic activity accelerating,” he added. — Bernadette Therese M. Gadon

Megaworld’s REIT plans to raise P27B from IPO

June 17, 2021 | 12:10 am

Richmonde-Tower---Iloilo-Business-Park — RICHMONDE Tower in Iloilo Business Park

By Cathy Rose Garcia, Managing Editor

MEGAWORLD Corp. is putting 10 of its key office assets into a real estate investment trust (REIT) that is aiming to sell up to P27.3-billion worth of shares in an initial public offering (IPO).

According to a prospectus filed with the Securities and Exchange Commission (SEC) on Wednesday, MREIT, Inc. is planning to offer secondary shares of up to 1.239 billion common shares at a maximum price of P22 per share.

“We are going to launch the largest REIT in the country. This will be the largest IPO of a REIT. We are launching a total asset size of about P55.6 billion for 10 properties. The size of the offering will be around P27.3 billion (including overallotment),” Kevin Andrew L. Tan, Megaworld chief strategy officer and MREIT president, told reporters on Wednesday.

The offer shares represent 49% of the company’s total issued outstanding capital stock, assuming the overallotment option is fully exercised. Megaworld will retain the remaining 51%.

Through a property-for-share swap, Megaworld put in 10 office, retail and hotel assets with a combined gross leasable area of 224,430 square meters (sq.m.) into MREIT.

The buildings are located within Megaworld’s major townships — Eastwood City in Quezon City, McKinley Hill in Bonifacio Global City, and Iloilo Business Park in Mandurriao, Iloilo City.

Included in the portfolio are: 1800 Eastwood Avenue, 1880 Eastwood Avenue, E-Commerce Plaza, One World Square, Two World Square, Three World Square, 8/10 Upper McKinley, 18/20 Upper McKinley, One Techno Place, and Richmonde Tower, which houses Richmonde Hotel Iloilo.

Mr. Tan emphasized that they chose only the office buildings with “Tier 1” tenants, mostly business process outsourcing (BPO) companies. He noted these office buildings have around 95% occupancy, with most lease contracts between five to 10 years.

“We have carefully selected the properties that we will be putting in here. We selected them for the quality of the buildings… and for the diversity, which includes location… We only choose those with the best quality tenants, superior BPOs. No POGOs (Philippine offshore gaming operators),” Mr. Tan said.

While only 10 of Megaworld’s office assets are included in MREIT, the company has identified four more to be injected in the next four years.

“Today, it’s 10 properties but Megaworld has 70 buildings, we have 1.4 million sq.m. (in office space). What we’re launching in the REIT is only 224,000 sq.m. and every year Megaworld builds an average of 100,000 sq.m. a year. In the last two years, we slowed down a bit… but we will accelerate again next year,” Mr. Tan said.

NGCP to seek bids for reserve power services

June 17, 2021 | 12:09 am

By Angelica Y. Yang, Reporter

PRIVATELY-led National Grid Corp. of the Philippines (NGCP) said on Wednesday that it would hold a competitive public bidding for the supply of power reserves or ancillary services (AS) to fulfill government requirements and secure the “best value” for consumers.

“We want to guarantee the best pricing for AS, especially since this is a pass-on cost to consumers. With an open and public bidding process, we ensure full transparency and comply with internal governance imperative of accountability, which all our stakeholders deserve,” NGCP President and Chief Executive Officer Anthony L. Almeda said in an e-mailed statement.

AS are support services that help maintain the electric grid’s quality, reliability and security.

However, the NGCP official said that procuring reserves on either firm or non-firm arrangements will not solve the recurring brownouts or power interruptions.

“What we have is a supply and not a distribution problem. For the grid to effectively address imbalances between supply and demand, we need to increase the power capacity of the country to meet rising demand as we start to recover and fully reopen the economy,” he said.

Mr. Almeda reiterated NGCP’s stand that full firm contracting of reserves, which the Department of Energy (DoE) has mandated, will “only lead to a change in payment terms where all the power, used or unused, will be shouldered by the public.”

‘URGENT’ NEED FOR RESERVES
Separately on Wednesday, the Philippine Independent Power Producers Association, Inc. (PIPPA) said fulfilling the country’s need for ancillary services and allowing the entry of new plants would lessen the effects of forced outages on the power grid.

“There is an urgent need to fill in the ancillary services requirement of the grid and complement it with additional capacity with the entry of new plants. This combination will ensure that the impact of forced outages will be minimal or at a best-case scenario, no blackouts,” PIPPA said in an e-mailed statement.

The DoE previously flagged NGCP for not procuring enough firm-contracted reserves for the grid as of end-2020.

Last week, NGCP explained that if it implements the 100% firm-contracted requirement for AS, consumers will see spikes in their power bills — with typical households in Luzon, Visayas and Mindanao seeing increases of P128, P108, and P278 in their monthly electricity bills, respectively.

According to a DoE circular issued in 2019, NGCP is required to fully procure firm-contracted reserves to guarantee the grid’s reliability.

“(We) value compliance and strive for transparency and adherence to the industry’s rules and regulations,” PIPPA said, adding that it “fully supports the policies that will result to stability, security, and reliability in the energy system.”

The group added that it is awaiting the completion of transmission and connection projects, including the Mindanao-Visayas Interconnection Project (MVIP), which will link the Mindanao and Visayas grids. Once this happens, the country will be connected under one grid.

“In particular, for Mindanao, we would like to see the interconnection happen as there is currently an oversupply of energy which can be tapped and used properly,” PIPPA said, referring to the MVIP’s goal of allowing excess power to be exported where it is needed, subsequently helping prevent shortages.

“By linking the three grids and with firm contracting as per the mandate of the DoE, we can be confident that we have investors entertaining the build of new plants,” it added.

In February, NGCP reported that the interconnection project might not be completed by the end of this year after discovering portions of its fiber optic cable to be damaged.

The system operator earlier placed the Luzon grid under red alert, triggering rotating brownouts in portions of the major island for three consecutive days amid higher temperatures and forced plant shutdowns. A red alert notice is declared if the supply-demand balance deteriorates, bringing the possibility of power interruptions.

Mindanao Rail consultancy contract seen in June

June 17, 2021 | 12:08 am

By Arjay L. Balinbin, Senior Reporter

THE Transportation department is expecting to award the project management consultancy services contract of the Mindanao Railway Project (Tagum-Davao-Digos segment) this month, an official said on Wednesday.

“Ito pong buwan na ito, tayo po ay umaasa na mai-award na po natin ‘yung kontrata doon po sa ating project management consultant (We are hoping to award the contract to the project management consultant this month),” Transportation Undersecretary Timothy John R. Batan said at a virtual press briefing.

The Department of Transportation announced in December last year its invitation to shortlisted Chinese consultants to submit bids for the project management consultancy services contract.

The China-funded project has an approved budget of P3.09 billion for the consultancy services.

The department requires the completion of the detailed design and works within 17 months, with 33 months set as the period for the contractor to be engaged in pre-construction activities and the defects notification period.

The railway project, one of the Duterte administration’s priority infrastructure projects, was originally scheduled to start construction in January 2019 but right-of-way issues, mainly in Davao City, held back the timetable.

The railway’s P82.9-billion first phase, covering the 100.2-kilometer Tagum-Davao-Digos segment, is financed through an official development assistance package from the Chinese government.

D&L plans to offer up to P5-B fixed-rate bonds

June 17, 2021 | 12:07 am

PROCEEDS will be used to partially finance the company’s capital expenditures. — *BW FILE PHOTO*

D&L Industries, Inc. has filed with the Securities and Exchange Commission a registration statement and a preliminary prospectus for its P3-billion fixed-rate bonds, with an oversubscription option of up to P2 billion.

The offer will consist of three-year series A bonds due 2024 and five-year series B bonds due 2026, which will be listed and traded on the Philippine Dealing & Exchange Corp. once the company receives regulatory approvals.

If the oversubscription option is exercised, D&L expects to raise P5 billion in proceeds, which will be used to partially finance its capital expenditures (capex), repay bridge loans and interest costs incurred to fund its capex, and for other general corporate purposes.

“Capital expenditures related to the Batangas expansion project has been ongoing since the past year,” D&L said in its preliminary prospectus.

The facility in Batangas is being built on a 26-hectare property in First Industrial Township – Special Economic Zone. It will cater to D&L’s export business in the food and oleochemicals segment.

The expansion is said to be instrumental in the development of more coconut-based products and in the company’s plan to expand in new international markets.

“It will add the capability to manufacture downstream packaging, thus allowing the company to capture a bigger part of the production chain,” D&L said.

The company has been funding the project through bridge financing of short-term loans from partner banks.

“D&L intends to repay these bridge loans from the proceeds of the offer,” the company said.

The company engaged China Bank Capital Corp. as the sole issue manager, lead underwriter, and sole bookrunner for the offering.

D&L shares at the stock exchange improved by 2.13% or 17 centavos on Wednesday, closing at P8.15 each. — Keren Concepcion G. Valmonte

917Ventures: health technology demand surges

June 17, 2021 | 12:06 am

917Ventures, Globe Telecom, Inc.’s corporate venture builder, said on Wednesday that demand for services offered by its health technology platforms, KonsultaMD and HealthNow, is increasing as the pandemic crisis continues.

“Consultations made through KonsultaMD skyrocketed by 461% in 2020 compared to the previous year,” 917Ventures said in a statement.

Since its launch in August last year, the HealthNow mobile application has been downloaded over 240,000 times, it also noted.

KonsultaMD has been offering healthcare services for the past five years. The telehealth company has worked with the Health department to provide free telemedicine consultation to residents in the Philippine capital.

HealthNow, a collaboration between 917Ventures and ACHealth (Ayala Healthcare Holdings, Inc.), offers online consultations, medicine delivery, clinic appointments, and laboratory services.

917Ventures Managing Director Vince Yamat said, “We continue to reinvent lifestyle and movement through different products and services in the areas of health, e-commerce, financial technology, and advertising technology that deliver indelible value to consumers and businesses.”

Other Globe companies under 917Ventures are AdSpark, GCash, PureGo, and Rush.

“Being a venture builder, the company is constantly on the lookout for new ideas to launch and accelerate, to further improve the lives of Filipinos,” 917Ventures said. — Arjay L. Balinbin

Jollibee offers discount to vaccinated customers

June 17, 2021 | 12:05 am

Safety-Hero-shot-2 — THE Jollibee Group offers 10% discount for its vaccinated customers to make dining in even more rewarding.

SEVERAL brands under Jollibee Foods Corp. are offering vaccinated customers a 10% discount as part of a private sector initiative to encourage the public to get inoculated against the coronavirus disease 2019 (COVID-19).

“This discount promo is our way to thank our customers for getting vaccinated,” Jollibee Group Chief Sustainability and Public Affairs Officer Jose Miñana said in a statement on Wednesday.

“The vaccine is the solution that we have been waiting for to protect ourselves and our loved ones, as well as help revive our economy and livelihoods,” he added.

Vaccinated customers of Jollibee, Chowking, Mang Inasal, Greenwich, Red Ribbon, Burger King, Panda Express, and PHO24 may avail of the discount by presenting their vaccine card along with a valid ID. Specific terms for each discount promo are also available on the brands’ Facebook pages.

The 10% off promo may be availed for as many times as they want when they dine in at the restaurants until the end of August.

More than 150 restaurants in the NCR (National Capital Region) Plus bubble are part of the Smart Bakuna Benefits program of the private sector-led campaign, Ingat Angat. The full list of participating brands is available on www.ingat-angat.com/benefits.

Jollibee shares at the stock market closed lower by 3.81% to finish at P206.80 apiece. — Keren Concepcion G. Valmonte