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Del Monte Philippines P44-B IPO OK’d

The corporate regulator has approved Del Monte Philippines, Inc.’s P44-billion initial public offering (IPO) plan in what could be the second-biggest share sale amid a coronavirus pandemic this year. 

The company will get its registration order and permit to sell after complying with certain conditions, the Securities and Exchange Commission (SEC) said in a statement on Friday. 

The commission at its July 15 meeting approved Del Monte’s registration statement covering almost 2.8 billion common shares to be listed and traded on the main board of the Philippine Stock Exchange (PSE). 

The company, known for its tomato sauce products and packaged pineapple, seeks to conduct the IPO from Aug. 9 to 13. It plans to make PSE debut on Aug. 23, according to its latest SEC filing. 

Monde Nissin Corp. raised P48.6 billion from the country’s largest IPO in June. More than P122 billion was raised in the sale of primary and secondary shares at the stock exchange in the first half, more than P104 billion for the entire 2020. 

Del Monte Philippines shelved its IPO plan in 2018 due to volatile market conditions despite getting approval from the SEC and PSE. 

The company was stronger than it was three years ago after expanding its footprint overseas, Del Monte Chief Operating Officer Luis F. Alejandro told the ABS-CBN News Channel earlier this month. 

Del Monte Philippines will sell 699.33 million secondary common shares to the public for as much as P54.80 each, with an overallotment option of as much as 104.899 million common shares. 

These are shares owned by Del Monte Pacific Ltd. units Central American Resources, Inc. and SEA Diner Holdings (S) Pte Ltd. 

Parent Del Monte Pacific will get and use a portion of the proceeds to repay debt, redeem some preferred shares and for general corporate purposes. 

Del Monte Philippines assigned Morgan Stanley Asia (Singapore) Pte. and Credit Suisse (Singapore) Ltd. as joint global coordinators and bookrunners for the offer. CLSA Ltd., DBS Bank Ltd. and Jefferies Singapore Ltd. were named as joint international bookrunners. 

BDO Capital Investment Corp. and BPI Capital Corp. were tapped as joint local lead underwriters and bookrunners, with First Metro Investment Corp. as the local co-lead underwriter. 

Del Monte Pacific shares at the stock exchange fell by 2.6% or 40 centavos to close at P15 each. — Keren Concepcion G. Valmonte 

BSP fully awards 28-day bills

BW FILE PHOTO

The Philippine central bank raised P100 billion from its auction of short-term securities on Friday as rates dipped on strong liquidity loans to the government got renewed. 

The Bangko Sentral ng Pilipinas (BSP) fully awarded the 28-day bills as total tenders reached P186.61 billion, almost twice as big as the initial offer. Demand was slightly higher than P182.21-billion worth of bids last week. 

The debt paper fetched an average rate of 1.784%, 3.8 basis points lower than last week. Banks sought yields of 1.77% to 1.789%, a lower range compared to the 1.795-1.809% a week ago. 

“Today’s auction results continue to show market participants’ sustained strong interest in the 28-day bill amid ample liquidity in the financial system,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement. 

The rates declined anew after the central bank again extended the validity of its P540-billion loan to the National Government, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp. said via Viber. 

The move meant there was less pressure for the state to borrow locally, which helped government bond yields to ease, he said. 

Higher bids in the past auctions showed the market was still awash with cash. 

The central bank’s Monetary Board renewed its P540-billion direct advance to the government for the fourth straight time, since the latter started borrowing short-term loans from the central bank in March last year. 

The central bank charter allows it to lend a fifth of its average revenue to the government, which is equivalent to P540 billion. 

Congress increased the cap to 30% or as much as P850 billion through a stimulus law passed this year amid a coronavirus pandemic. 

The government started borrowing from the central bank last year to help finance its pandemic response amid plunging tax collections. 

“The BSP’s monetary operations will remain guided by its latest assessment of liquidity conditions and market developments,” Mr. Dakila said. — Beatrice M. Laforga 

SB Corp. says interest-free MSME loans still available

Small Business (SB) Corp. said Friday small enterprises that want to restart their operations may still apply for interest-free and collateral-free government loans. 

“To date, SB Corp. has approved 31,700 MSME (micro, small and medium enterprises) loan applications. These correspond to a total loan amount of P4.84 billion,” SB Corp. said in a statement. 

It said application can be processed online by creating an account at www.BayanihanCARES.ph.  

Depending on their pre-pandemic sales and assets, qualified applicants can apply for loans ranging from 10 thousand pesos to P5 million. 

“These loans are payable up to a maximum of four years, inclusive of a maximum grace period of 12 months for non-tourism MSMEs, or a maximum grace period of 24 months for tourism MSMEs accredited by the Department of Tourism or registered as Barangay Micro Business Enterprises,” SB Corp. said. 

“Successful loan applicants will only need to pay a one-time service fee, set at a maximum of 8% for a four-year loan term. Lower service fees apply to shorter loan terms,” it added. 

SB Corp. President and Chief Executive Officer Ma. Luna E. Cacanando noted that it tries not to duplicate what mainstream MSME finance companies are doing. 

“We do not compete with what is already working in the market. What we need to do is fill in the gaps for small businesses that banks and lending companies do not yet find attractive to finance relative to their profit objectives and cost management thresholds. We develop and operate our financing programs for MSMEs along these lines,” she said. – Arjay L. Balinbin 

PHL hoping WTO fisheries talks wrap up this year

REUTERS

The Philippines is hoping that the World Trade Organization’s (WTO) negotiations on fisheries subsidies will be concluded this year, the Trade department said Friday. 

Trade  Secretary  Ramon M. Lopez  and  Agriculture  Secretary William D. Dar  “encouraged”  trade  and agricultural  ministers  at a virtual WTO meeting on July 15 “to  speed  up  negotiations to come up with  new disciplines to  eliminate subsidies that contribute to illegal, unreported and unregulated fishing, overfished stocks, and overcapacity and overfishing in time for the 12th WTO Ministerial Conference (MC12) to be held by December this year,” the Department of Trade and Industry (DTI) said in a statement. 

Mr. Lopez said the negotiations will only be completed if there is strong political will and diplomatic flexibility. 

The DTI said the draft text of the agreement “contains a carve-out that if a prohibited subsidy occurs in disputed waters, it will not be addressed by a WTO panel.” 

The department said Mr. Dar urged the WTO members to reconsider the language, as it “will provide a loophole for countries involved in maritime disputes to be exempted from the disciplines.” 

He said “flexibility and exemptions for poor and vulnerable artisanal fishers in developing countries and least-developed countries should not create a permanent exception from effective disciplines to address overcapacity and overfishing,” the department said. 

The DTI also noted that the decline in fish stocks could worsen poverty and endanger coastal communities that are dependent on fishing. 

“Fish stocks are at risk of collapsing in many parts of the world due to overexploitation. An estimated 34% of global stocks are overfished compared with 10% in 1974, reflecting a pace of exploitation where the fish population cannot replenish itself,” the department said, citing data from the UN UN Food and Agriculture Organization. – Arjay L. Balinbin 

DoE endorses award of 3 WPS petroleum service contracts

THE Department of Energy (DoE) has endorsed to the Office of the President the award of three new petroleum service contracts (PSC) in the West Philippine Sea.   

The DoE in a statement Friday gave no further details on the service contracts. 

It called such awards a “concrete and explicit” means of enforcing sovereign rights in line with the South China Sea arbitral award. 

“Under the United Nations Convention on the Law of the Sea, petroleum licensing is the most important sovereign right of a coastal state like the Philippines,” the DoE said.  

In October, President Rodrigo R. Duterte approved the DoE’s proposal to lift the moratorium on oil and gas activities in the West Philippine Sea and the resumption of all programmed work and financial plans in the disputed waters.  

The DoE said Service Contract (SC) 54 operated by Nido Petroleum Philippines Pty. Ltd.; SC 58 and SC 59 operated by PNOC Exploration Corp.; and SC 72 operated by Forum (GSEC101) Ltd. are all still in the process of drilling wells. It added that SC 75 operated by PXP Energy Corp. is in the stage of acquisition, processing, and interpretation of seismic data.   

“The indicated service contracts are all in the exploration stage. In the oil and gas industry, exploration activities include a thorough study and understanding of the geological and geophysical characteristics of the area, as well as the conduct of on-site survey and drilling activities,” the DoE said.  

“Due to the significant investment involved in carrying out exploration programs, on-site exploration activities are carefully planned to ensure the maximum coverage of data collection in the study area. Physical structures such as production platforms shall only be installed prior to the production of petroleum in commercial quantities,” it added. – Revin Mikhael D. Ochave

Philippines signs double taxation agreement with Brunei

The Philippines and Brunei Darussalam signed an agreement Friday that will eliminate double taxation and deter tax evasion on income generated from cross-border transactions, the Department of Finance (DoF) said. 

Finance Secretary Carlos G. Dominguez III signed the Double Taxation Agreement (DTA) with his Brunei counterpart, Dr. Awang Haji Mohd Amin Liew bin Abdullah, minister of finance and economy. 

“This agreement will serve us well as we bounce back from the ravages of the global health crisis. It will further ease trade in goods and services between our two countries. Moreover, it will strengthen our economic cooperation and enhance investment flows and economic activity across our borders,” Mr. Dominguez said in his speech during the signing ceremony. 

He said the Philippines will coordinate closely with Brunei’s tax officials to ensure that the DTA will be implemented properly and tax laws are enforced. 

The agreement also promotes technology- and skill-sharing between the two nations. 

Negotiations for the DTA started in 2001 and the first draft was approved in August 2017. 

“I look forward to heightened cooperation between our two countries as we both exert all our efforts to recover from the pandemic and rebuild the best possible future for our two peoples,” Mr. Dominguez told Brunei officials. 

The Philippines has to complete DTAs with its neighbors to comply with the rules of ASEAN Forum on Taxation. 

In January 2020, the DoF said it is expecting negotiations to conclude soon for the proposed DTA with Cambodia. 

The Philippines currently has DTAs with the US, Switzerland, the UK, the United Arab Emirates, Thailand, Australia and Germany. – Beatrice M. Laforga 

Alsons lists P1.4-B commercial papers

Alsons Consolidated Resources, Inc. has listed an initial P1.4-billion worth of securities with the Philippine Dealing & Exchange Corp. as part of its P3-billion commercial paper program, it told the stock exchange on Friday.

The Alcantara-led firm said the debt papers under the program are to be offered in one or more tranches within three years from June 25, 2021.

“We are pleased with the opportunity to provide investors with an attractive alternative investment outlet as we once again tap the short-term capital market in our continuing quest to ensure the provision of safe, reliable and affordable power for the people of Mindanao and other areas of the Philippines,” Alsons Chairman and President Nicasio I. Alcantara said.

Multinational Investment Bancorporation was the issue manager, arranger, and underwriter for the issuance, while Acuña and Francisco Law was the transactional legal counsel, and AB Capital and Investment Corp. was the facility agent.

On June 29, Alsons placed the first tranche of its debt program at P2 billion to be offered for sale to the public. It said the initial tranche would be composed of 182-day securities with a discount of 3.25% per annum, and 364-day papers with a discount of 3.75%.

In May, the company said it was completing the development phase of two new hydropower plant projects after its entry into renewable energy with the 14.5-megawatt (MW) Siguil hydro power plant in Sarangani province.

The P4.5-billion run-of-river hydro plant, which is under construction at the Siguil River basin, is expected to start operations early next year.

In January, the Philippine Rating Services Corp. gave the issuance a PRS A plus issuer credit rating, which means that the company has an “above average capacity to meet its financial commitments compared to other Philippine corporates.”

Alsons earmarked P6.4 billion in capital expenditures for four projects, including the three hydro plants. It said it would source both internally generated and capital market funds to finance the projects.

Alsons provides electricity to more than eight million people in 14 cities and 11 provinces in Mindanao. Currently, it has four power plants with an overall capacity of 468 MW.

In 2020, its consolidated income reached P1.87 billion, nearly twice more than what it earned a year earlier, with the full operations of its power plants.

On Friday, shares of Alsons at the stock exchange went down 1.54% or two centavos to close at P1.28 per share. — Revin Mikhael D. Ochave

Mobile number portability to start Sept. 30

Phone users will be able to keep their mobile numbers permanently even when they change network providers starting Sept. 30, the country’s dominant mobile network operators said on Friday.

In a joint statement, Smart Communications, Inc., Globe Telecom, Inc., and DITO Telecommunity Corp. said that they recently conducted the initial tests of their technical capabilities and interoperability.

“The joint effort will soon allow customers the option to keep their mobile numbers permanently, even when they change network providers or switch subscriptions,” they said.

“After the initial tests yielded positive results, the next steps will be to streamline the external porting process, implement fraud and security safeguards, optimize systems and backend business operations in time for a smoother and faster porting experience for customers by September 30, 2021.”

The Securities and Exchange Commission approved in January last year the creation of the Telecommunications Connectivity, Inc. that would ease the portability of mobile phone numbers.

The new company would enable number porting services in line with the new mobile number portability initiative of the government through Republic Act No. 11202, also known as the Mobile Number Portability Act.

It was jointly put up by the country’s major telecommunications companies.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

SEC extends filing of required contact details

The Securities and Exchange Commission (SEC) is extending the deadline for the submission of the contact details of corporations, partnerships, and individuals under its jurisdiction to Aug. 31.

The SEC’s Memorandum Circular No. 28, series of 2020 requires persons and entities under its supervision to create and/or designate an e-mail account address and cellphone number for its transactions with the commission, along with the General Information Sheet or their Notification Update Form.

An alternate e-mail address and another cellphone number are also required.

Corporations are required to include the complete name and signature of their corporate secretary, an officer in charge of its administration and management, or an authorized representative. Meanwhile, partnerships must secure the signature of the managing partner or an authorized representative.

Covered persons must submit a notice to change their contact details by using a form. Forms or notices may be filed through e-mail via MC28_S2020@sec.gov.ph.

The commission will consider submissions beyond the Aug. 31 deadline as noncompliant and a P10,000 penalty fee will be imposed. — Keren Concepcion G. Valmonte

Cityland tops off Mandaluyong condominium

Cityland Development Corp. said on Friday that it had completed the structural construction of its 24-storey office, commercial, and residential condominium in Mandaluyong City.

In a stock exchange disclosure, it announced the recent top off of Pioneer Heights 1 condominium along Pioneer Street in Barangay Highway Hills.

“With the completion of the Kalayaan Bridge of the Bonifacio Global City – Ortigas link road project, travel time to Pasig, Makati, and Mandaluyong has drastically reduced, thus making Pioneer Street a booming, bustling for commercial and residential area,” Cityland said.

“Carefully planned amenities such as swimming pool, clubhouse, gym, multipurpose event area and viewing deck are provided to make condo living enjoyable and comfortable,” it added.

According to Cityland, the residential units of the condominium in studio, studio deluxe, one-bedroom deluxe, three-bedroom, commercial, and office units are available for purchase through cash and installment terms.

The company said it is currently offering a promo for installment down-payment payable up to 24 months with zero interest.

For the first quarter, Cityland posted a 16.5% decline in its attributable net income to P109.12 million despite a 17.7% climb in total revenues to P549.82 million.

On Friday, shares of Cityland at the stock exchange fell 8% or eight centavos to end at 92 centavos apiece. — Revin Mikhael D. Ochave

Phoenix corners bigger oil market share

PHOENIXFUELS.PH

Phoenix Petroleum Philippines, Inc. has increased its share in the domestic oil market, the listed company said in a statement on Friday, citing data from the Energy department.

It said as of May 25, it had a share of 7.81% of the local oil market, an improvement from its 7.1% share as of end-2020.

Phoenix added that its improved market share solidifies the company’s position as the third-largest oil player in the country.

“Despite challenges and setbacks, we’ve remained determined and optimistic throughout this pandemic, and I’m glad that our efforts are bearing fruit,” Phoenix President Henry Albert R. Fadullon said in the statement.

“As quarantine restrictions become more relaxed, and the country’s vaccination operations continue, safety remains as our top priority, but we are now more optimistic. In fact, our second quarter has yielded stellar results, encouraging us to look forward to an even more business-friendly environment,” he added.

In May, Mr. Fadullon said Phoenix’s business results for April surpassed pre-COVID levels for the first time since the pandemic began.

“We are proud and grateful that even with the difficulties that the pandemic has caused, we are able to continue cultivating our business while serving even more communities,” Mr. Fadullon said.

The company said it had maintained its standing as the third-largest oil firm in the Philippines since last year.

Shares of Phoenix Petroleum at the Philippine Stock Exchange rose 1.1% or 14 centavos to finish at P12.86 apiece on Friday. — Revin Mikhael D. Ochave

Shares decline on concerns over virus variant

Philippine Stock Exchange index

Philippine shares declined on Friday after the country’s Health department reported more cases of a more transmissible coronavirus disease 2019 (COVID-19) variant and as the country released updated quarantine classifications.

The Philippine Stock Exchange index (PSEi) declined by 34.1 points or 0.5% on Friday to close at 6,693.83, while the broader all shares index went down by 45.08 points or 1.07% to finish at 4,137.94.

“Philippine shares slumped as many watched vigilantly the number of COVID cases from the new Delta variant strain,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

On Friday, the Health department reported 16 new COVID-19 cases of the more transmissible Delta variant.

Eleven of the new Delta COVID-19 cases were detected in Mindanao, Metro Manila, Central Luzon, and the Visayas. Meanwhile, five are from Filipinos who returned from Qatar, the United Arab Emirates, and the United Kingdom.

“The market closed lower following the government’s announcement of the quarantine measures to be implemented in the country until the end of the month,” Darren Blaine T. Pangan, trader at Timson Securities, Inc., said in a separate Viber message.

Metro Manila was placed under the general community quarantine (GCQ) classification until the end of the month, along with Bulacan, Cavite, and Rizal. Meanwhile, Laguna remains under GCQ with heightened restrictions.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun said investors are turning cautious despite the easing of some restrictions in Metro Manila.

“The easing of restrictions, which was cheered by investors not long ago, may be having the opposite effect on the market right now due to fears of a more deadly

surge in cases,” Mr. Mangun said in an e-mail.

“Investors are downsizing positions until more of the population has immunity,” he added.

All sectoral indices closed in the red on Friday except for services, which inched up by 0.4 point or 0.02% to 1,585.15.

Meanwhile, mining and oil lost 231.54 points or 2.34% to 9,650.11; holding firms shed 110.76 points or 1.63% to 6,651.3; industrials went down by 116.52 points or 1.22% to end at 9,393.85; financials declined by 1.34 points or 0.09% to 1,453.75; and property inched down by 1.97 points or 0.06% to 3,200.36.

Value turnover surged to P7.59 billion with 2.4 billion shares switching hands on Friday, from the P4.89 billion with 982.45 million issues switched hands the previous day.

Decliners outnumbered advancers, 164 versus 48, while 34 names closed unchanged.

Net foreign selling increased to P939.35 million on Friday from the P551.11 million on Thursday.

Timson Securities’ Mr. Pangan expects the market to trade between 6,600 to 7,080, while AAA Southeast Equities’ Mr. Mangun expects the index to trade towards its next support at 6,600 after failing to hold at 6,775. — Keren Concepcion G. Valmonte

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