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Stocks up on easing tensions, remittance data

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PHILIPPINE SHARES rebounded on Wednesday as worries over tensions between Russia and Ukraine eased and after data released on Tuesday showed remittances hit all-time high last year.

The benchmark Philippine Stock Exchange index (PSEi) went up 142.88 points or 1.95% to close at 7,452.82 on Wednesday, while the broader all shares index advanced 70.34 points or 1.82% to 3,930.54.

“The rally is fueled by optimism on signs that diplomacy is working towards further de-escalation of tensions between Russia, Ukraine and the NATO allies,” Cristopher Adrian T. San Pedro, Equity Trader Unicapital Securities, Inc. said in a Viber message.

Kyiv appeared to blame Russia for a cyberattack on Tuesday as US President Joseph R. Biden, Jr. warned that more than 150,000 Russian troops were still amassed near Ukraine’s borders after Moscow’s announcement of a partial pullback was met with skepticism, Reuters reported.

“The country’s robust cash remittances for 2021 also boosted sentiment,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

Data released by the Bangko Sentral ng Pilipinas (BSP) on Tuesday showed cash remittances coursed through banks rose by 5.1% to $31.418 billion in 2021 from $29.903 billion in 2020.

Last year’s remittance growth is a turnaround from the 0.8% drop in 2020 but still slower than the 6% expansion estimated by the central bank.

Cash remittance inflows in 2021 exceeded the previous record of $30.133 billion in 2019 before the pandemic.

The BSP expects cash remittances to grow by 4% this year.

AAA Southeast Equities, Inc. President William M. Cabangon said Converge Information and Communications Technology Solutions, Inc., which gained 8.04%, was the biggest winner among index names.

“This was after reports came out that the company is signing a deal with Elon Musk’s SpaceX. The partnership would allow Musk to offer internet connectivity beamed from satellites to the Philippines,” Mr. Cabangon said in a Viber message.

All sectoral indices ended in the green on Wednesday. Property jumped 133.68 points or 3.98% to 3,484.98; services advanced 45.66 points or 2.39% to 1,950.38; industrials climbed 177.40 or 1.70% to 10,588.65; mining and oil gained 182.91 points or 1.63% to 11,359.29; holding firms rose 74.61 points or 1.06% to 7,101.30; and financials went up 11.94 points or 0.69% to 1,737.86.

Value turnover increased to P9.53 billion with 1.16 billion shares switching hands on Wednesday from the P8.03 billion with 1.21 billion issues traded on Tuesday.

Advancers beat decliners, 123 versus 63, while 49 names closed unchanged.

Foreigners turned buyers with P893.43 million in net purchases seen on Wednesday versus the P263.59 million in net outflows seen the previous trading day. — M.C. Lucenio with Reuters

’Til death do us part: Marriage trends in the PHL keep in step with the pandemic

UNSPLASH

Marriage registrations in the Philippines picked up in 2021 after dropping 44% the previous year, according to a February study by the iPrice Group, a Kuala Lumpur-based online shopping aggregator. Google searches for wedding-related keywords also increased in 2021 as compared to 2019.

Data from the Philippine Statistics Authority show that marriage registrations in the country numbered 240,775 in 2020, down from 431,972 in 2019.

Among the countries surveyed, Malaysia and Indonesia saw the least decline in marriage registrations within the same time period at 9%. Thailand and Singapore also saw a decrease in marriage registrations, at 17% and 11%, respectively.

Between January and October 2021, Filipinos started tying the knot again, as marriage registrations surpassed the previous year’s tally by 7%.

Since couples who exchanged vows over the pandemic had to adhere to public health protocols through physical distancing and reduced seating capacity, they were able to save up to 53% of the cost of a “normal” wedding, iPrice gathered.

Quoting 2018 prices for the average mid-range budget from My Bridesmade, an online wedding resource, iPrice found that a mid-range Filipino wedding at 20% venue capacity (30 guests) amounted to P264,888. This amounts to less than 53% of the pre-pandemic wedding estimate. The same wedding at 50% capacity (75 guests) likewise saved the bride and groom 37% of the original budget (P356,580 versus P566,000).

The quoted budgets include invitations, the reception, and gifts.

KEYWORD SEARCHES
The iPrice study also saw a 254% increase in the number of Google searches among Filipinos for wedding-related keywords in 2021 versus 2019. Among the most-searched keywords were “wedding rings” (152%), “engagement rings” (120%), “wedding dresses” (134%), and “wedding venues” (147%).

Searches peaked in January and March 2021, when restrictions were loosened in Metro Manila; and October 2021, when some form of travel was allowed. 

Overall, the country had the most searches on all wedding-related keywords compared to Malaysia, Singapore, Thailand, and Indonesia. Despite not having the highest Google reach (or the number of signed-in users visiting the said search engine), searches for the wedding-related keywords reached 8.9 million in 2021 in the Philippines — or up to four times the total searches of its other four neighbors. — Patricia B. Mirasol

iPrice collated marriage registration data from psa.gov.ph (for the Philippines), dosm.gov.my (for Malaysia), databoks.katadata.co.id (for Indonesia), stat.bora.dopa.go.th (for Thailand), and singstat.gov.ph (for Singapore). Data on Google searches were collated from Google Keyword Planner.

S.Korea reports record 90,443 COVID cases, daily count doubles in a week

SEOUL – South Korea on Wednesday reported a daily record of 90,443 new coronavirus cases, as numbers nearly doubled within a week amid the spread of the highly infectious Omicron variant.

The record count for Tuesday marked a drastic surge from 57,177 a day before and brought total infections in the country since the pandemic began to 1,552,851. Deaths remain comparatively low, though, with 39 fatalities on Tuesday and a total of 7,202 so far, according to the Korea Disease Control and Prevention Agency (KDCA).

The country of 52 million population has largely been a COVID-19 mitigation success story, thanks mainly to widespread wearing of masks, social distancing and aggressive testing and tracing.

But authorities have shifted testing and tracing policy, in line with the less fatal Omicron variant’s spread, toward self-monitoring and diagnosis and at-home treatment starting this month.

Prime Minister Kim Boo-kyum said the government was considering easing the current strict distancing curbs which include a 9 p.m. curfew for restaurants, cafes and bars, and a ban on gatherings of more than six vaccinated people.

More than 86% of South Koreans have been fully vaccinated and 58% have received a booster shot, KDCA data showed. – Reuters

China’s Xi says Hong Kong needs to stabilize and control COVID surge – media

SCREENSHOT VIA APEC

HONG KONG – China’s President Xi Jinping has told Hong Kong‘s government to stabilize and control a deepening COVID-19 outbreak in the global financial hub as soon as possible, pro-Beijing media reported on Wednesday.

The directive increases pressure on authorities scrambling to keep pace with a deluge of new infections in the financial hub.

Xi instructed Chinese Vice Premier Han Zheng to relay to Hong Kong Chief Executive Carrie Lam his “concern about the pandemic situation” and his care for local residents, according to front page stories in newspapers Wen Wei Po and Ta Kung Pao.

Both media, which typically support Beijing’s interests in Hong Kong, said Xi made the remarks recently but did not specify where he was speaking.

The stories come a day after Lam said her government’s response to the Omicron outbreak had not been satisfactory, with hospitals and medical staff overwhelmed.

Lam, who has not confirmed whether she will seek another five-year term as head of the Chinese-ruled city, said she could “not preclude” the possibility of postponing next month’s chief executive election.

No heavyweight contender has yet declared their candidacy, a highly unusual situation just five weeks before the election.

COVID infections have surged 20 times on a daily basis since the start of February and Lam has said authorities can no longer keep up with testing and isolation mandates.

Dozens of patients were being treated in makeshift open air spaces outside medical centers on Tuesday as several hospitals operated at over 100% capacity.

Health authorities reported 1,619 confirmed infections on Tuesday, a daily record, and another 5,400 preliminary positive cases.

Xi said the government “must mobilize all power and resources to take all necessary measures to ensure the safety and health of the Hong Kong people and ensure the stability of the society in Hong Kong,” according to the newspapers.

Hong Kong has recorded around 26,000 infections since the start of the pandemic, including just over 200 deaths, far fewer than other similar sized major cities.

However, medical experts have warned cases could surge to 28,000 daily by the end of March amid worries about high levels of vaccine hesitancy among the elderly. – Reuters

U.S. sea level to rise by 2050 as much as in past century, NOAA says

STOCK PHOTO | Image by Solène Desjardins from Pixabay

Sea levels around the United States will rise up to a foot over the next 30 years due to climate change, as much as they have risen in the previous century, the National Oceanic and Atmospheric Administration (NOAA) projected in a report on Tuesday.

The study forecasts that sea levels along the U.S. shoreline will rise 10-12 inches (25-30cm) on average by 2050. Sea levels will tend to be higher along the Atlantic and Gulf shores, because of greater land subsidence there, than along the Pacific coasts.

In addition to more frequent bouts of coastal inundation associated with storm surges, rising sea levels are leading to increasing episodes of flooding from high tides alone.

Damaging coastal floods typical of today’s sea levels, weather conditions and infrastructure are expected to occur more than 10 times as often in the next 30 years, Nicole LeBoeuf, director of NOAA‘s National Ocean Service, said in a summary of the report.

“I can tell you with complete confidence that these are not the kind of changes that we grew up with,” said LeBoeuf, a native of the Texas Gulf Coast.

The study, designed as a planning tool to mitigate and adapt to rising sea levels predicted, has a high degree of certainty over the next three decades, regardless of any efforts to curb greenhouse gas emissions that are warming the planet, NOAA officials said. But NOAA suggests additional sea level increases further into the future could be curtailed by tougher action to lower greenhouse gas emissions.

“This new data on sea rise is the latest reconfirmation that our climate crisis ⁠— as the president has said ⁠— is blinking ‘code red,'” Gina McCarthy, the White House national climate advisor to U.S. President Joe Biden, said in the study’s summary.

The NOAA report, prepared in collaboration with several federal agencies, draws on a combination of tide gauge measurements, satellite observations and analysis from the latest report of the Intergovernmental Panel on Climate Change (IPCC) to determine sea level rise projections around the country.

NOAA officials said the report builds on and supports previous findings from the IPCC and other entities about sea level rise, which experts say is caused primarily by melting ice sheets and glaciers as global temperatures increase. – Reuters

Yellen to urge G20 help for developing countries to end pandemic

WASHINGTON – U.S. Treasury Secretary Janet Yellen will urge her G20 counterparts to work towards ending the COVID-19 pandemic in developing countries and ensuring they have the resources needed to support an equitable recovery, a U.S. Treasury official said on Tuesday.

Yellen is due to participate virtually in the meeting of finance ministers and central bank governors from the Group of 20 major economies on Thursday and Friday.

The U.S. Treasury official laid out U.S. priorities for the meeting, which comes as COVID-19 Omicron variant cases are receding in many wealthy countries but are still rising in many developing countries. Host country Indonesia reported a daily record 57,049 new cases on Tuesday.

Southeast Asia’s most populous country had initially planned an in-person G20 finance meeting in Bali, but the venue was moved to Jakarta in January when it became a hybrid gathering with many officials participating virtually.

Yellen will urge the G20 to tailor their policies to individual country circumstances to secure an inclusive recovery and to close the gap in vaccine access for poorer countries, the official said.

This includes supporting efforts by the World Bank, the International Monetary Fund, the World Health Organization and the World Trade Organization to address global bottlenecks in the deployment of vaccines, therapeutics and diagnostics, the official said.

Yellen also will urge G20 countries to support a proposed global fund housed at the World Bank to invest in pandemic prevention and preparedness, with its estimated $75 billion cost a “bargain” compared to COVID-19’s global economic and human costs.

Yellen also will express confidence that momentum will be maintained among 136 countries to finalize an agreement for a 15% global minimum corporate tax this year, so that it can be put into force in 2023.

The official said Democrats in the U.S. Congress broadly support the international tax provisions.

“Secretary Yellen expects they will be part of any Build Back Better bill passed,” the official added, referring to U.S. President Joe Biden’s social and climate investment bill, which is currently stalled in Congress.

Yellen also intends to make a pitch for more intensive climate action to meet carbon emissions reduction goals, including mobilizing more private capital to finance the transition away from fossil fuels. Public resources can help catalyze additional private financing for reducing emissions, the official said. – Reuters

Ukraine defense ministry website, banks, knocked offline

PIXABAY

KYIV – The online networks of Ukraine’s defense ministry and two banks were overwhelmed on Tuesday and Ukraine’s information security centre pointed the finger at neighbouring Russia.“It is not ruled out that the aggressor used tactics of little dirty tricks because its aggressive plans are not working out on a large scale,” the Ukrainian Centre for Strategic Communications and Information Security, which is part of the culture ministry, said in a statement.Kyiv has blamed Moscow for similar actions in the past and since Russia began massing more than 100,000 troops near the frontier, raising East-West tensions as the West fears Russia is planning to attack Ukraine, which Moscow denies.The type of disruption reported by Ukrainian authorities on Tuesday is known as a distributed denial-of-service – often abbreviated DDoS – but the scale of it wasn’t immediately clear. The manoeuvre, which works by directing a fire hose of internet traffic from a multitude of sources against one set of servers or another, is a common across the internet and such attacks happen periodically in Ukraine and beyond.A message on the home page of the Ukrainian defense ministry website said it was under maintenance. The ministry tweeted that its website was apparently under a cyberattack and it was working on restoring the access to it.Oshadbank confirmed the cyberattack saying that it resulted in slowing down of some of its systems. The strategic communications centre said that Privatbank users also had problems with payments and a banking app. Privatbank did not immediately comment.San Francisco-based Cloudflare, a prominent provider of denial-of-service protection, said that it had seen no evidence of “large DDoS activity” in Ukraine against its data centres or customers there.“From our perspective today hasn’t seen unusual attack traffic against us or our customers on Ukraine,” the company said in an email.The United States and its allies have indicated that they are prepared to respond to Russian digital incursions, even if details remain sparse.White House press secretary Jen Psaki said there were “a range of means that we could respond – both seen and unseen – to a cyber attack or any other attack.” — Reuters

Cebu Pacific plans new squeeze on legroom with record number of seats

CEBUPACIFICAIR.COM

A Philippine airline that holds the record for cramming the most seats into a plane is set to do it again with a new Airbus SE jet.

Cebu Air Inc., the biggest carrier in the Southeast Asian nation, plans to configure its newest and upcoming A321 XLR aircraft with the highest seat-density possible, doubling down on a strategy it deployed on wide-body jets used on short-haul routes.

“We always look to optimize the floor space that we have in combination with the number of lavatories, galleys etc.,” Michael Szucs, chief executive adviser of Cebu Pacific, said in an interview on the sidelines of the Singapore Airshow, which began Tuesday. “It will be another high-density configuration on the A321 XLR, but it’s still a very comfortable one.”

Cebu in 2019 decided to move kitchens and bathrooms on some of its new Airbus A330neos to cram in a record 460 seats, 20 more than the plane’s recommended maximum. The A321 XLR, expected to enter service from 2023, can accommodate as many as 244 seats in a higher-density configuration.

The airline uses the A330neo, which is capable of covering as much as 13,334 kilometers (8,300 miles), mostly on short-haul routes, flying to places like Hong Kong and Singapore. While the plane also flies to Dubai and Australia to cater to Filipinos working overseas and backpackers, “it’s a short-haul big bus,” Szucs said.

Filling an aircraft to capacity with basic seats allows airlines to bring down fares by flying more people for the same expense, even at the cost of passenger comfort. They compensate for that by offering an on-time and efficient flying experience. It also helps carriers navigate through scant parking and landing slots at airports.

European low-cost carrier Ryanair Holdings Plc led the charge in 2014 when it ordered high-density jets from Boeing Co. with eight more seats than normal, while Cathay Pacific Airways Ltd. in 2017 started cramming an extra seat into each economy row on its Boeing 777-300s, at the cost of about an inch of personal space for each passenger.

“Airbus is very confident about not only the A330neo, but also about the configuration we got it in. We were the ones that innovated, along with Airbus, to get this number of seats on there,” Szucs said. “They think there will be other buyers as well.” — Bloomberg

CLI sparks hope for homebuyers through its ‘Homefest’ online fair

CLI’s P3 billion Mandtra Residences located in Manduaue City, Cebu offers units from 21.04 sqm to 41.52 sqm. The three-tower development is on a landscaped 12,405 sqm property with a lush tropical theme. A retail podium, a sky garden, clubhouse with adult and kiddie pools, jogging paths, fitness gym and chapel have been designed to provide homeowners a multi-faceted urban sanctuary.

With the number of COVID-19 cases going down, restrictions are easing up and borders are now opening – businesses, professionals, and families have a renewed hope that things will soon be better.

This new sense of optimism brings opportunity for families to consider more investments, such as investing in housing.

This February, Cebu Landmasters, Inc. (CLI), the leading developer in Visayas and Mindanao, sets its sights on realizing the aspirations of homebuyers here and abroad as it launches the third edition of the CLI Homefest, the company’s biggest online sales event.

Carrying the theme “New Home, New Hope,” this year’s virtual event helps homebuyers find their new home that would bring new hope to them and their families, especially during these changing times.

Cebu Landmasters’ four-tower Mivela Garden Residences is the third of CLI’s Garden Series residential projects in Cebu and its sixth in the VisMin area. The development features a total of 1,536 units, catering to mostly individuals and starter families with its mix of studio and one-bedroom units. Mivela Garden Residences is envisioned as a modern garden residential community that will level up city living. Greenery and open spaces will be complemented by amenities focused on a multi-level clubhouse with swimming pool.

CLI Homefest 2022 showcases Cebu Landmasters’ residential homes that cater to economic, mid-market, and high-end buyers. Discounted prices on selected projects, easy all-in downpayments, and flexible payment terms are available during the virtual home fair from February 15 to March 31.

Close to 30 CLI communities (condominiums and subdivisions) will be highlighted throughout the online fair. These homes are built with livable spaces, generous amenities, property management that ensures 24/7 security, and easy access to essentials. The following residential segments being highlighted in CLI Homefest are: Casa Mira, Garden Series, Premier Masters, and the brand new Costa Mira Beachtown.

Casa Mira is CLI’s line of value-for-money housing communities, catering to the common aspiration of every Filipino family to own a home. Casa Mira has condominium towers sprawled across Cebu, Iloilo, Davao, and Cagayan De Oro, while subdivisions are situated at Bacolod, Dumaguete, Ormoc, Iloilo, Cebu, and Naga cities. With beautifully designed units built in strategic locations, Casa Mira communities are perfect for families dreaming to live in a beautiful community while getting the best value for their money.

For those dreaming of a home filled with nature in a progressive urban setting, CLI’s best-selling Garden Series promises open spaces, great views, and well-designed residences. These condominiums include Mivela Garden Residences and Mivesa Garden Residences in Cebu City; MesaVirre Garden Residences in Bacolod City; MesaVerte Residences in CDO; MesaTierra Garden Residences in Davao City; and Velmiro Plains Bacolod in Bacolod City.

Cebu Landmasters’ Casa Mira brand that gives more value to the Filipino Family offers generous amenities such as a clubhouse with swimming pool, chapel, basketball or tennis court and children’s playground. The photo above is an architect’s perspective of Casa Mira Homes Ormoc.

Situated in prime urban locations, CLI’s Premier Masters offer premium lifestyles and world-class living – perfect for those who want to enjoy more of life. Under this high-end line of homes include Mandtra Residences, 38 Park Avenue, One Astra Place, Base Line HQ, Base Line Premier, and Base Line Prestige, all located in Cebu. Citadines Paragon Davao and One Paragon Place units are all available in Davao and Terranza Residences units, in Iloilo.

A newly introduced beach town community in Mactan, Costa Mira Beachtown Mactan is the first of CLI’s series of integrated beachtown resort communities that are designed to bring to life the comforts of home in a tropical paradise environment.

More than showcasing these impressive properties where buyers can own their new home, CLI Homefest 2022 gives them a great opportunity to own a new home for themselves or for their loved ones as exciting discounts are up for grabs on selected properties, as well as affordable payment terms. Easy all-in downpayments are also offered during the entire virtual event.

Buyers can start entering CLI Homefest 2022 by visiting https://homefest-cebulandmasters.com as early as Feb. 15.

 


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A serene oasis for auction

The Sta. Elena Golf Club unveils its prestigious One Banahaw Drive property

Feb. 2, 2022 marked the unveiling of the Sta. Elena Golf Club’s exclusive, One Banahaw Drive property. Situated inside the Sta. Elena Golf Club’s course, within the development of the Sta. Elena Golf & Country Estate, the prestigious 2,701 sq.m. lot is truly one-of-a kind. It boasts magnificent views of the golf course from all sides — a serene oasis within a nature sanctuary.

This is the first time that the Sta. Elena is offering a property of its kind. Currently, One Banahaw Drive is being auctioned on an “as-is-where-is” basis. It is the latest addition to the property developer’s growing portfolio of premium residences and leisure facilities, which are nestled in the heart of its world-renowned golf course.

From golf course to nature residences

Sta. Elena Golf and Country Estate began with a dream to create a nature escape just a stone’s throw away from the city. Founders Bienvenido “Rico” Tantoco, Jr. and Jose Alberto “Bebo” Quiros partnered together to convert the sugar lands on Quiros’ Canlubang estate into a green development that would enhance the property’s breathtaking, natural beauty.

This idea first manifested as a luxurious, all-weather, 27-hole golf course by internationally acclaimed designer Robert Trent Jones, Jr. Sprawled over hectares of pristine fairway, it was recognized on Golf Digest’s list of top 100 courses outside of the USA.

This vision evolved to include five, scenic residential villages surrounding the golf course. Banahaw Circle, Sierra Madre, and Makiling Reserve were each named after Laguna valley’s iconic mountains, while Gliceria Place and Marina Grove pay homage to Rico Tantoco’s mother and wife.

“The development was created with a greater sense of privacy and space in mind,” Rico explains, “where one experiences the outdoors while simultaneously enjoying the comforts and convenience of urban living.”

With its ecosystem of hardwood trees, lagoons, and open green spaces, Sta. Elena Golf and Country Estate stands out as a unique development. As a certified Cooperative Sanctuary by Audubon International, the estate has always been devoted to the conservation of the environment.

Joyful living away from the city

In light of today’s challenges, households have drastically evolved. With the rise of e-commerce and remote work, people have been spending more time at home than ever. Understandably, city dwellers are opting to escape their congested urban spaces in favor of more generous lot cuts in the suburbs.

Sta. Elena Golf and Country Estate offers a prestigious address in the south at an opportune moment. A 35-minute commute from the city, it is a community where residents can lead a soulful, nature-infused lifestyle.

For more information on One Banahaw Drive, please contact the Sta. Elena Golf Club for property inquiries:

sales@staelena
+639088628873
www.staelena.com

Schedule in advance to view the property.

#StaElenaOneBanahawDrive

 


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BTr raises P121B from RTB auction

REUTERS

By Jenina P. Ibañez, Senior Reporter

THE PHILIPPINE government on Tuesday raised an initial P120.764 billion in an auction of five-year retail Treasury bonds (RTBs) as it continues to seek funding for its pandemic recovery efforts.

Tenders at the rate-setting auction reached P183.44 billion, or more than six times the P30 billion on offer at the Treasury’s first retail bond offer for 2022.

The retail Treasury bonds fetched a coupon rate of 4.875%, higher than the 4.625% set for the five-and-a-half year RTBs in November last year.

The RTBs’ coupon rate is also higher than the five-year debt papers quoted at 4.4732% in the secondary market, based on the PHP Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

National Treasurer Rosalia V. de Leon said the auction showed strong interest in RTBs.

“Coupon penciled in rate liftoff and emerging higher inflation risk (in the United States),” she said via Viber.

US Federal Reserve officials have been providing forward guidance about a possible rate hike by March, and quicker inflation bolsters the case for a more aggressive policy tightening.

The US consumer price index increased by 7.5% year on year in January, the quickest in four decades. It was faster than the 7.3% median estimate in a Reuters poll and the 7% in December.

The RTBs target small investors who want low-risk, higher-yielding savings instruments backed by the National Government.

“Characteristic of an RTB offering, the auction was well-received by investors as evidenced on the total bids submitted by the market,” a trader said in a Viber message.

“Having this issuance has reciprocal benefits for both the issuer and the investor as the market is still awash with liquidity that is in need of further cash outlets for diversification. The coupon rate set by the BTr (Bureau of the Treasury) was well-within market expectations.”

The five-year bonds are being sold in denominations of at least P5,000, and in multiples of P5,000 thereafter.

The BTr also said holders of fixed-rate Treasury notes maturing on March 14 and July 4 can swap their holdings for the RTBs. The minimum exchange offer is P5,000.

The offer period for the peso-denominated debt is from Feb. 15 to 28, while settlement is on March 4.

The RTBs’ maturity date is on March 4, 2027.

In November 2021, the government raised P360 billion from its offering of five-and-a-half year RTBs. Of the total amount, P330.5 billion raised was fresh funds, while the remaining P29.5 billion was from the bond exchange program.

It was Treasury’s second RTB offering of 2021 after it raised P463.3 billion from three-year retail papers in February.

Issue managers for the latest RTBs include the Land Bank of the Philippines (LANDBANK), Development Bank of the Philippines (DBP), BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp. (FMIC), SB Capital Investment Corp., and UnionBank of the Philippines, Inc. (UnionBank).

Authorized selling agents for the bonds are Asia United Bank, BDO Unibank, Inc., BDO Capital, BPI Capital, China Banking Corp., Citibank N.A., DBP, East West Banking Corp., FMIC, ING Bank, LANDBANK, Metropolitan Bank & Trust Co., Philippine Bank of Communications, Philippine National Bank, Rizal Commercial Banking Corp., Robinsons Bank Corp., Security Bank Corp., Standard Chartered Bank, and UnionBank.

Cash remittances hit record high in 2021

REUTERS

CASH REMITTANCES sent home by overseas Filipino workers (OFWs) hit a new high in 2021, reflecting the improvement in the global economy amid the coronavirus disease 2019 (COVID-19) pandemic.

Data released by the Bangko Sentral ng Pilipinas (BSP) on Tuesday showed cash remittances coursed through banks rose by 5.1% to $31.418 billion in 2021 from $29.903 billion in 2020.

Last year’s remittance growth is a turnaround from the 0.8% drop in 2020 but still slower than the 6% expansion estimated by the central bank.

Cash remittance inflows in 2021 exceeded the previous record of $30.133 billion in 2019 before the pandemic.

Remittances from the Filipinos in the Americas (7.1%), Europe (5.5%), Asia (4.5%), and the Middle East (0.7%) increased in 2021, even as the pandemic continued to affect economies, the BSP said.

The United States (40%) was the biggest source of remittances in 2021, followed by Singapore, Saudi Arabia, Japan, the UK, the United Arab Emirates, Canada, Taiwan, Qatar, and South Korea. These countries altogether account for more than three-fourths (78.9%) of cash remittances during the year.

For December alone, remittances jumped 3.3% year on year to $2.987 million, marking the 11th straight month of annual growth. This is the biggest monthly inflow in 12 months or since the $2.89 billion in the same month of 2020.

Remittances usually surge in December as OFWs send more money back home during the holidays.

“Remittance inflows bounced back despite the impact of the pandemic because OFWs were able to secure posts in essential sectors such as health, construction, and shared services,” Asian Institute of Management (AIM) economist John Paolo R. Rivera said in a Viber message.

The recovery in remittances also showed how countries have improved their pandemic management, Security Bank Corp. Chief Economist Robert Dan J. Roces said.

Meanwhile, personal remittances that include inflows in kind grew 2.9% to $3.298 billion in 2021 from $3.205 billion in the year prior. This brought the full-year figure 5.1% higher to a record $34.884 billion.

“The growth in personal remittances reflected a pickup in OFW deployment, strong demand for OFWs amid the reopening of host economies to foreign workers, and the continued shift to digital support that facilitated inward transfer of remittances,” the BSP said.

Personal remittances in 2021 were equivalent to 8.9% of the country’s gross domestic product and 8.5% of the gross national income, it added.

AIM’s Mr. Rivera is hopeful that Filipino workers will be in demand again as the global economy reopens.

Germany, Canada, and Guam are among economies that have signaled a need for migrant workers in healthcare, services, and skill-specific industries.

“As the economy opens, both altruistic and investment motives will trigger remittances to increase until a new normal is reached,” Mr. Rivera said.

Security Bank’s Mr. Roces expects remittances to continue fueling the growth of household consumption.

“We have to expect some growth slowdown globally as mentioned by the International Monetary Fund, so that is factored-in, and there is that risk of an escalation of the Russia-Ukraine [spat], as well as the possibility of new variants emerging,” he said.

The BSP expects cash remittances to grow by 4% this year.  Luz Wendy T. Noble