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MPIC’s NLEX sees 25% increase in traffic volume this year

By Arjay L. Balinbin, Senior Reporter

NLEX Corp., operator of North Luzon Expressway (NLEX) and Subic Clark Tarlac Expressway (SCTEX), expects higher traffic volume this year, as quarantine restrictions are relaxed further.

“We expect traffic growth of 25% in NLEX and 23% in SCTEX versus the 2020 average,” Romulo S. Quimbo, Jr., NLEX Corp. senior vice-president for communications, told BusinessWorld in a phone message on Oct. 15.

NLEX had an average daily traffic of 235,000 in September, up from 230,000 in the same month in 2020.

Meanwhile, SCTEX’s average daily traffic hit 49,000 last month, up from 44,000 in September of the previous year.

“It will rise further as 4Q (fourth quarter) is seasonally higher. December is peak month with estimated traffic at 288,000 in NLEX and 70,000 in SCTEX,” Mr. Quimbo said.

NLEX Corp. is a unit of Metro Pacific Tollways Corp. (MPTC).

On Saturday, NLEX Corp. announced that newly installed acting secretary of the Department of Public Works and Highways (DPWH) Roger G. Mercado recently inspected the NLEX Connector “to familiarize himself with the construction progress and right-of-way requirements” of the project.

“NLEX Corp. is accelerating the construction of the NLEX Connector as the DPWH remains committed to fast-track the right-of-way delivery so motorists can soon benefit from this high impact infrastructure that will provide ease of travel and support economic growth,” the company said in an e-mailed statement.

The company targets to complete the first five kilometers of the P23-billion connector road project in the first quarter 2022.

Caloocan Interchange to España Boulevard is the first section of the project.

The eight-kilometer toll road project aims to link the tail of NLEX Harbor Link Segment 10 at Circumferential Road 3 (C3), Caloocan City to Polytechnic University of the Philippines in Sta. Mesa, Manila.

MPTC is the tollways unit of Metro Pacific Investments Corp. (MPIC), one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

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

Subcompact sedan and dusted

The all-new Nissan Almera boasts a sleek yet spacious design that’s vastly more compelling than the homely styling of its predecessor’s. The new body features lower, wider, and longer dimensions using Nissan’s Emotional Geometry design language, while retaining the Almera’s vaunted roomy interior space. — PHOTO FROM NISSAN PHILIPPINES, INC.

The Nissan Almera and the hierarchy of wants and needs

SUBCOMPACT CARS are the next step up from tiny hatchbacks in the pecking order of automotive sizes and prices. These two categories usually cater to those shopping on a budget. In other words, these cars fulfill our automotive needs. Who wouldn’t want to be luxuriating in the serene smoothness of a Toyota Camry? But the reality is that the vast majority of the population is on a Vios budget — this Toyota subcompact being the country’s best-selling car.

The Camry is a want and the Vios is a need. That’s pretty clear-cut.

But Nissan has other ideas. Having pretty much abandoned the luxury sedan segment with the superb Altima no longer available (although the smooth Sylphy compact sedan still is), Japan’s number-two automaker is making its subcompact entry — the Almera — extra special. The company actually crafted an all-new model that transcends the needs for a subcompact sedan, making one actually want this car.

Much of that has to do with the exterior styling. The all-new Almera boasts a sleek yet spacious design that’s vastly more compelling than the homely styling of its predecessor’s. The new body features lower, wider, and longer dimensions using Nissan’s Emotional Geometry design language, while retaining the Almera’s vaunted roomy interior space. Key elements of the “Emotional Geometry” design include the distinctive V-motion grille, boomerang-shaped LED headlamps and taillamps, LED signature daytime running lamps, kick-up C-pillars, and a floating roof.

The new Almera, which is known as the Versa in the US market, now carries the same bold front end and sculpted body panels as the head-turning Sentra, Altima, and Maxima — all fast-selling sedans in North America. The previous Almera was no ugly duckling — just a wallflower — but that wallflower has become the belle of the ball.

Thankfully, the goodness is not just skin-deep. The new Almera now has an exciting turbocharged engine and, for the first time in a Nissan sedan, state-of-the-art Nissan Intelligent Mobility (NIM) features that provide monitoring and intervention technology. These features include Intelligent Forward Collision Warning, Intelligent Forward Emergency Braking, Blind Spot Warning, Rear Cross Traffic Alert, as well as the Intelligent Around-View Monitor with Moving Object Detection.

The new Almera is now powered with a compact and lightweight 1.0-liter turbo engine, which delivers greater power and better fuel efficiency, available in four variants with automatic and manual transmission options. The segment-first turbo engine has a power output of 100ps, a class-leading 152Nm of torque, and a claimed fuel efficiency of up to 23.3kpl for the manual version.

The all-new Almera’s interior has also been totally redesigned to accommodate a new seven-inch TFT meter with Integrated Drive-Assist Display, infotainment screen, black leather interiors with contrast stitching, as well as a new flat-bottom steering wheel with hands-free, meter, and voice recognition controls. The stylish passenger cabin features high-quality materials and exemplary craftsmanship with head and legroom to spare, retaining its reputation for best-in-class roominess.

The infotainment system provides convenience and seamless connectivity with an eight-inch Advanced Touchscreen Display with Apple CarPlay, bringing infotainment, navigation, safety, security, and more under a single platform.

“The all-new Almera is the smart and stylish sedan that first-time owners, growing families, and young professionals can trust,” says Nissan Philippines President and Managing Director Atsushi Najima. “As part of Nissan’s transformation plan in the Philippines, we are offering a unique and exciting challenger in the competitive passenger car segment.”

The all-new Nissan Almera starts at P728,000 for the EL MT, goes right up to P938,000 for the VE MT and P998,000 for the VE CVT, and tops out at P1,098,000 for the flagship VL N-Sport CVT. The starting and top-of-the-line prices are just right, although I feel there should have been a P800,000-something variant inserted in the yawning chasm between the P728,000 EL and P938,000 VE MT. A P210,000 price jump between the two lowest-priced variants seems too steep.

The new Almera comes in six colors: Cayenne Red, Gun Metallic, Galaxy Black, Premium Corona Orange, Brilliant Silver, and Pearl White (with a P15,000 premium for the latter).

It comes with a vehicle warranty of five years/150,000 km for the VE and VL variants. Similar to the Navara and Terra, the warranty of the new Almera is the first in its segment, providing customers a worry-free ownership experience.

New car buyers may have been focused on the compact crossover wars, but with the all-new Almera, the subcompact sedan segment — which has close to a dozen players — has just gotten a lot more exciting.

A matched set

BULLHEAD with Sneakers

WOMEN are told to pair their bags with their shoes (that is, if the old rules are still followed), but men play that game with watches.

“Both are best when form and function are in harmony,” said Filipino watch enthusiast group Filipino Time co-founder, Francis Aguila during a webinar with shoe brand Sledgers Philippines on Oct. 16. The webinar, streamed on Facebook, was titled “Fashionably on Time,” and featured an activity where men’s shoes were paired with watches. “As a guy, those are the two things that we really get to wear and show our personalities,” said Mr. Aguila.

Mr. Aguila was joined by Sledgers brand executive Noah Arota, and his colleagues at Filipino time, Federico Borromeo and Ferdinand Aguila. “It’s become quite apparent that watch lovers also tend to be shoe lovers,” said Mr. Arota. “This makes perfect sense in a lot of ways. A pair of shoes, much like a watch, is a great way for the owner — or us — to express their personality.”

“Watches and shoes are both highly collectible,” he said.

The watches and shoes the men would wear reflected their own lifestyles. For example, Mr. Borromeo is a polo player and riding enthusiast. Strangely enough, for this sport, he prefers diver’s watches due to their ease of use and legibility (the ease to read the time on a watch). His choices were the 11610LN Rolex Submariner, which was paired with cap-toe oxfords (called the Raul) from Sledgers. His other choice, the overtly masculine Panerai Submersible 389 (with a distinct crown protector) was paired with tan Chelsea boots from Sledgers, called the River.

Mr. Borromeo also talked a bit about his own watch-wearing habits. Asked if people still wore watches during the pandemic, Mr. Borromeo said, “I wear, like, three or four when I work from home, Francis,” he said. There’s one for coffee, one for breakfast, another for lunch, and another change for dinner. “It works!”

Filipino Time’s Mr. Aguila — who sat throughout the webinar with a vintage Stratocaster behind him — wears a smartwatch on one hand, and a “nice watch” on the other. His watches of choice are an IWC Mark XVI, with a big crown, a black dial, and rendered in stainless steel. His other choice is the Grand Seiko Snowflake (one that he wore during the webinar, shown in a customary “wrist check”), with a beautifully detailed dial. Mr. Arata recommended the Rhett penny loafers to go with the IWC piece, and the Ralph brogues for the Grand Seiko Snowflake.

Mr. Borromeo said about pairings, “It’s important to know the wrist size you have, and maybe a little bit on the shape,” he said. On wearing watches for packing for trips, Mr. Aguila recommends having a bit of versatility, such as having straps to swap on hand.

Finally, Mr. Aguila, a racing and driving enthusiast, showed his Seiko Bullhead, a vintage piece modeled on stopwatches in an homage to the precision his activities crave. Their pairing? A pair of black sneakers called the Rod, which were already on his feet during the webinar. His second choice: a Tudor GMT, was paired with the Ritchie, an easygoing suede moccasin.

Mr. Aguila added that, considering the injuries he has had from his multiple activities (he cites his knees, ankles, and back as among the anatomical parts battered): “Picking the right shoe size is more important that picking the watch size. The right shoe size makes so much of a difference to your daily life.” — Joseph L. Garcia

Century Pacific sees faster growth for Mindanao with more efficient logistics

LISTED firm Century Pacific Food, Inc. (CNPF) sees more investors and traders coming into Mindanao, where the company has major presence with its processed marine and coconut products, if the overall logistics network is made more efficient.

Wilhelmino Nicolasora, Jr., CNPF vice-president for domestic sales, said the “logistical challenge” in the country’s south was magnified by the coronavirus pandemic as restrictions made sourcing and movement of supplies more difficult.

“Efficiency in logistics networks will open more (export and import) opportunities in Mindanao,” he said last week during the second installment of the Davao Investment Conference 2021 Innovation Series that focused on the potential of the Mindanao market.

Mr. Nicolasora cited how improved infrastructure such as the newly upgraded airport in General Santos City, known as the tuna capital of the Philippines, would boost supply chains.

The company reported a 24% rise in net income to P3.9 billion last year, driven by its branded business that includes marine, meat, and milk products.

Mr. Nicolasora also said that while Mindanao is already a major export producer for the country, particularly agricultural commodities, promoting its potential to investors needs continued work.

“We have to break through the negative image of Mindanao… If its potential is unleashed, Mindanao is a powerhouse that can influence possibilities not just on a regional level, but on a national level too,” he said.

The six regions in Mindanao contributed 17.1% to the country’s economic output in 2020, with Northern Mindanao and Davao having the biggest shares at 4.7% each.

Luzon’s eight regions, including the capital, accounted for 69.2% of gross domestic product while the remaining 13.6% share was from the three Visayas regions.

NCCC
Lafayette A. Lim, president of the Davao-based NCCC Group of Companies with interests in retail and real estate development, said now is the opportune time for investors to venture into Mindanao.

“The saying ‘Give Mindanao a chance’ is outdated and no longer true. Overlooking Mindanao and taking it for granted is a bad business decision,” he said during the same forum organized by the Davao City business chamber.

Mr. Lim announced that NCCC, with its supermarket and non-food store chains, is preparing to enter the franchising industry.

“This is to allow aspiring business owners to benefit from the NCCC brand and technology. All in all, this makes faster growth in places where our stores are present,” he said.

Mr. Lim said the construction of NCCC’s “mega distribution center,” which will include a dry and cold storage facility, is also in the pipeline. — Marifi S. Jara and Maya M. Padillo

Cool(er) ray

Only 1,000 units of the Geely Coolray Sport Limited will be sold in the country. — PHOTO BY KAP MACEDA AGUILA

Geely’s best-selling crossover gets a limited-edition upgrade

FIRST OFF, one needs to acknowledge how the Geely Coolray was able to almost effortlessly (and single-handedly) deeply imprint a newcomer onto the Philippine automotive map. Since Geely’s introduction in 2019 (and the start of the Coolray’s sales), the model has become a certified hit — frequently topping the five-seater subcompact crossover segment to which it belongs.

Sojitz G Auto Philippines, official Geely importer and distributor here, will surely agree. On its website, the company reported delivering a total of 2,426 units in the first half of the year alone — a huge 342% uptick from the same period in 2020. Of this sum, 1,312 were Coolray units. The model itself spiked in sales by 153% versus the first half of last year (when it sold 518 units).

Obviously, a lot is riding on the Coolray’s shoulders. And Geely Philippines now quickly ups the ante in view of an abundance of segment competitors — along with the most recent variant introduction of a bitter rival.

Geely Philippines throws a high-value card down onto the pile: the Coolray Sport Limited. Priced at a reasonable P1.218 million, it now takes its place as the highest trim for the nameplate — with the other flavors being the Comfort, Premium, and the aforementioned Sport.

“This is a normal Sport, but we’ve made several changes to make it more exciting and dynamic. And it’s ‘limited’ because we’re only going to sell a thousand units of this in the market,” said Geely Philippines Marketing Services Manager Ryan Isana, in an exclusive interview with “Velocity.”

The Sport Limited receives 18-inch turbine-inspired black alloy wheels, wrapped with 215/55 Continental tires. “It looks more dynamic and sporty, which we think the model embodies,” continued Mr. Isana.

Second, the vehicle now features an electric tailgate with angle memory. “By just pressing the trunk release button found at the rear trunk door or at the key fob, the trunk door will automatically open. And with a touch of the close button, the rear trunk door will automatically close,” reported Geely Philippines in a release.

Admittedly, the brand had received inquiries from customers about this very feature right after it was launched. “People have been asking if there’s an option for a powered tailgate. We’re happy that Geely China obliged,” continued Mr. Isana.

Lastly, the Sport Limited distinguishes itself via ventilated front seats, with independent controls for both the driver and front passenger. These have three speed settings, or may be switched off completely. “Because it’s hot here in the Philippines, this is one of the quirky features we wanted to include,” he said.

Under its hood, the Coolray Sport Limited is powered by the familiar 1.5-liter turbocharged direct injection engine (delivering 177ps and 255Nm) with seven-speed wet type dual clutch transmission.

“The Coolray is the first high-performance SUV built on a BMA platform or the B-segment Modular Architecture. This BMA platform was developed in partnership with Volvo with the assistance of 100 modular architecture experts from over 20 countries. This platform was designed to exceed the criteria for a five-star Euro NCAP safety rating, making utmost safety standard for Geely vehicles,” added the company.

The crossover features a seven-inch LED instrument panel display which adjusts to the three driving modes (Comfort, Eco, and Sport). On the console, a 10.25-inch multimedia touchscreen with QD link and Android connectivity function enables efficient tethering. A G-Pilot system is highlighted by an Auto Parking Assist system for easier parallel and perpendicular parking with a touch of a button and four cameras depicting a 360-degree view of the vehicle.

A blind spot detection system alerts the driver of incoming vehicles, while a thoughtful tire pressure monitoring system provides instantaneous, on-demand reading of pressure and temperature of tires. Lastly, a remote start feature lets owners turn on the engine and air-conditioning system to cool the cabin before boarding the vehicle.

“The Coolray also has a lot of segment-defying features usually found in more expensive vehicles,” insisted Mr. Isana. Along with anti-lock brakes with electronic brakeforce distribution, the Coolray boasts brake assist, electronic stability and traction control, hill start assist, hill descent control, and cruise control.

Geely truly seems to be playing its cards right.

Largest collection of adidas products to be found in new Brand Center

THE ADIDAS Brand Center officially opens to the public on Oct. 22 and promises an experience ‘never before seen in retail,’ with the store maximizing every corner by housing the country’s largest collection of adidas products and more.

TAKING its presence in the country to a new level, global brand adidas is set to launch its new Brand Center in Makati City.

Located at a 1,500-square meter area in Glorietta 3, the adidas Brand Center, which will officially open to the public on Friday, Oct. 22, promises an experience “never before seen in retail,” with the store maximizing every corner by housing the country’s largest collection of adidas products and more.

Brand officials said the store is anchored on three pillars, namely, sports, for the athlete; lifestyle and culture, for creators and trendsetters; and sustainability, a key advocacy of adidas.

They also said that the Brand Center is a testament to how adidas views the Philippine market.

“We do believe in the Philippines as a market, and more than that, we believe in physical retail. And when you go here (Brand Center), you can see the level of investment that we placed into this one physical location. This is not an easy project. But we always thought of what this space is all about,” said Anthony Frangos, country manager adidas Philippines, at the Brand Center’s media launch on Oct. 13.

“And to open it during what we hope is the end of a pandemic speaks volumes of how we view the Philippines as a market. We’re here for the long haul,” he added.

Products found in the store are not only confined to the typical sports and lifestyle offering as the collection also includes exclusive gear for golf and trail and outdoors.

Then there is the customer service, with guests are treated to one-on-one service with dedicated in-store specialists and a digital guide with more details about each section that can be accessed via QR codes.

The store also presents an enhanced digital experience, using LEDs that make the most of technology to showcase content exclusive to the store.

Twelve “moment areas,” too, can be found in the store. These are spaces that meld sport and culture and draw on the unique Filipino heritage.

In the fitting areas, there are artworks which were done in partnership with Argao weavers in the Visayas and T’boli women in Mindanao and its Women’s Ramp section is housed in wood slat and finished with locally and hand-made clay disks.

Local artistry is seen throughout the Brand Center, with works by visual artist Kris Abrigo, contemporary art group Aral Cru, and adidas partner Quiccs decorating the store.

Recognizing that everyone has creative potential in them, the Brand Center has installed a “Maker Lab” in the store, which will serve as a space for customization. It will allow consumers to customize their chosen adidas products.

PUSH FOR SUSTAINABILITY
In line with its advocacy for sustainability, adidas will have a “Sustainability Ramp” in the Brand Center, which will serve as the brand’s call to help “End Plastic Waste.”

The ramp, composed of a life-sized digital tunnel with a full wall of curved LED mesh and four large OLED displays, will tackle the issue of marine plastic pollution through an immersive experience for customers, hoping to spark conversations about sustainability, and how everyone has the capability to lead the change.

“With the launch of the Brand Center, it was the perfect timing for us to raise awareness about sustainability. We hope that through this narrative, we are able to inspire everybody visiting our Sustainability Ramp to accept the challenge of ending plastic waste head-on,” said John David Cortez, Manager of Sports Marketing and Brand Communications for adidas Philippines.

To ensure the safety and health of visitors and staff and manage foot traffic, the adidas Brand Center will be asking customers to book their visit in advance. It can be done through adidasbrandcenter.ph.

For more updates, follow adidas Philippines on Facebook and Instagram. — Michael Angelo S. Murillo

DoE shoots down worries on Udenna Corp.’s purchase of Malampaya

THE ENERGY department dismissed concerns about Udenna Corp.’s purchase of the Malampaya deepwater gas-to-power project after a senator repeatedly raised issues about its financial capacity.

Energy Undersecretary Felix William B. Fuentebella said the context needed to be placed in proper perspective after Senator Sherwin T. Gatchalian called Udenna out on Friday for its debts and cash problems, which led to the suspension of its casino project.

Mr. Fuentebella told BusinessWorld via call on Friday that the casino issue was of no concern to the department because it was under a different consortium. “We don’t know anything about casinos. Our only focus is the energy issues.”

The company behind the acquisition of a 45% stake in the Malampaya project is Udenna subsidiary UC Malampaya Philippines Pte. Ltd., while the casino project is under a separate subsidiary, PH Resorts Group Holdings, Inc.

There is no problem, said Mr. Fuentebella, because the department is evaluating if the same corporation can perform the same rights and obligations to promote energy security.

“We have been consistent with our evaluation because our mandate is to protect the Filipinos’ interest through energy security,” he said.

Mr. Gatchalian, on the other hand, was skeptical of the qualifications of the heavily indebted company.

“This is a red flag,” the senator said in English and Filipino in a statement. “First, the acquisition [by the] Udenna Corp. unit of Chevron [Corp.]’s 45% stake in Malampaya was largely financed by loans. Now, Udenna wants to have the operating interests by acquiring Shell’s stake.”

Mr. Gatchalian was referring to the other 45% stake in the Malampaya gas field or Service Contract 38 held by its operator, Shell Philippines Exploration B.V. (SPEx). If completed, it will allow Dennis A. Uy’s group to take control of the project.

In May, Shell Petroleum NV signed an agreement with Malampaya Energy XP Pte. Ltd. for the sale of its 100% shareholding in SPEx to the Udenna unit.

“Malampaya is no ordinary asset. We have to make sure that any transaction should go through a thorough review and due diligence by the government to assure the Filipino people that whoever is going to step in is highly qualified, competent, and can deliver electricity,” he added.

The Malampaya project supplies close to 26% of the power needed in Luzon or the requirement of about 3.7 million households.

Mr. Fuentebella said that his only concern was whether the rights and obligations of the service contractor could be fulfilled.

“Shares transfer is not covered by our circular, still, because it may affect the nature of how the corporation works, we entered into the fray and evaluated,” he added.

He also said that although there were changes in the corporation’s shareholders, “it’s still the same animal,” noting that the people operating and running the offshore Palawan project are still the same.

Mr. Gatchalian, who chairs the Senate energy committee, cited reports that foreign banks will finance the acquisition of SPEx. He claims that these are the same set of lenders behind Udenna’s takeover of Chevron’s stake for $565 million (P28.7 billion) that was closed in March 2020. — Alyssa Nicole O. Tan

PSE clears follow-on offers of Synergy Grid, The Keepers Holdings

BW FILE PHOTO

THE Philippine Stock Exchange (PSE) has approved the listing applications of two firms for shares subject to a follow-on offering, with the conduct and the listing of shares still subject to their compliance with the exchange’s post-approval requirements.

Synergy Grid & Development Phils., Inc. (SGP) and The Keepers Holdings, Inc. received approval for their applications on Friday last week.

Synergy Grid will be offering to the public up to 1.05 billion common shares as part of its follow-on offering by way of primary offer, with an overallotment option of up to 101 million shares that will be offered by shareholders Henry Sy, Jr. and Robert Coyiuto, Jr.

Shares will be sold for P12 up to P17 apiece. The company is expected to finalize the offer price by Oct. 22.

At the higher end of the price range, the company may net up to P17.91 billion from the sale of primary shares.

“The issuer intends to use the net proceeds from the sale of the firm shares, primarily to subscribe to nonvoting preferred shares to be issued by [the National Grid Corporation of the Philippines], subject to applicable laws and regulations,” the PSE said.

It will not receive proceeds from the exercise of the overallotment option.

“The 4.1 billion SGP shares under escrow are the shares subject of the swap transaction whereby the company issued 2,050,200,000 common shares of SGP to each of Henry Sy, Jr. and Robert Coyiuto, Jr in exchange for shares in OneTaipan Holdings, Inc. and Pacifica21 Holdings, Inc., respectively,” the PSE said.

Synergy Grid is scheduled to conduct the offer from Oct. 26 to Nov. 2, while the listing of follow-on shares at the exchange is slated for Nov. 10. Shares will be listed on the main board of the PSE under the ticker symbol “SGP.”

The company assigned BofA Securities, Inc. and UBS AG Singapore Branch as the offer’s joint global coordinators and joint bookrunners.

BDO Capital & Investment Corp. was named sole domestic coordinator and it will be joined by BPI Capital Corp. and PNB Capital and Investment Corp. as joint domestic lead underwriters and joint bookrunners.

Meanwhile, Lucio L. Co’s The Keepers Holdings, previously Da Vinci Capital Holdings, Inc., received the green light for the listing of up to three billion common shares for its follow-on offering by way of primary offer.

Shares will be sold for around P2 to P2.50 each. The company is scheduled to set the final offer price on Oct. 28.

The company can raise as much as P7.5 billion at the high-end of the range.

Proceeds from the offer will be used for “strategic acquisition opportunities,” product portfolio, and distribution channel expansion, as well as for investments in distribution and logistics.

The Co-led company is being revived to operate via a liquor distribution business.

It entered a share-swap transaction with Cosco Capital, Inc. for shares in Montosco, Inc., Meritus Prime Distribution, Inc., and Premier Wine and Spirits, Inc. The Keepers Holdings issued Cosco Capital 11.25 billion common shares in exchange.

The Keepers Holdings’ offer period for the follow-on offering is scheduled to run from Nov. 4 to 10, while the listing of its follow-on shares at the stock market is set to Nov. 19. Shares will be listed under stock symbol “KEEPR.”

China Bank Capital Corp., PNB Capital, and SB Capital Investment Corp. were assigned as joint issue managers, joint lead underwriters, and joint bookrunners for the offer. — Keren Concepcion G. Valmonte

Rates of T-bills, bonds to rise as oil rally fuels inflation concerns

BW FILE PHOTO

RATES of government securities may increase this week to reflect inflation pressures from a continued increase in global oil prices.

The Bureau of the Treasury (BTr) is looking to borrow P15 billion via the Treasury bills (T-bills) on Monday, broken down into P5 billion each in 91-, 182- and 364-day debt papers.

On Tuesday, the BTr will offer P35 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of five years and six months.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said T-bill rates could end slightly higher at today’s auction, while the 10-year bond yield could be close to the 4.94% fetched for the tenor at the secondary market, based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates published on the Philippine Dealing System’s website.

“Auction yields would still be higher for the coming week to reflect the latest week-on-week rise in the secondary market/PHP BVAL yields as global oil prices posted new seven-year highs as winter season approaches amid some disruptions in the global supply chain,” Mr. Ricafort said in a Viber message.

He said higher global oil, energy, and commodity prices due to supply chain disruptions could lead to some pickup in inflation.

Reuters reported on Friday that oil prices rose amid signs of strong demand and tighter supplies as industries switch to oil in response to higher gas and coal prices.

Meanwhile, a trader said T-bond rates could climb due to lower supply of certain tenors.

“Expect [T-bond rates] to try to breach the 4% as supply pressures persist on the five- to seven-year space,” a trader said in a Viber message.

The government made a full award of T-bills it offered last week as rates moved sideways as investors preferred to park their excess funds in safe-haven assets.

Broken down, the BTr raised P5 billion as planned from the 91-day debt papers from P11.37 billion in bids. The three-month T-bills fetched an average rate of 1.095%, up by 1 basis point (bp) from the 1.085% seen during the previous offering.

It also made a full P5-billion award of the 182-day T-bills as the tenor attracted tenders worth P18.36 billion. The six-month paper’s average rate was unchanged at 1.391%.

Lastly, the government borrowed the programmed P5 billion through the 364-day T-bills from P16.86 billion in tenders. The one-year securities’ average rate inched up by 0.3 bp to 1.587% from the 1.584% quoted at the previous offering.

Meanwhile, the last time the BTr auctioned off the reissued 10-year T-bonds on offer on Tuesday was on June 22, when it made a full P35-billion award of the papers from P65.091 billion in tenders.

The debt papers fetched an average rate of 3.185% at that auction, down 54.7 bps from 3.732% previously and lower than the 4.75% coupon for the series.

The BTr is looking to raise P200 billion from the local market this month: P60 billion from weekly offers of T-bills and P140 billion from weekly auctions of T-bonds.

The government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. — Jenina P. Ibañez

Preview: 2022 Chevy Trailblazer

PHOTOS FROM TCCCI AND ANONYMOUS SOURCE

Chevrolet’s premium subcompact SUV set to blaze a trail in the Philippines anew

THE CHEVROLET Trailblazer once frolicked on Philippine roads at a time when way fewer brands challenged it and other SUVs then (think Pajero, Patrol, Land Cruiser, etc.).

Now, it is set to make a return this month in a vastly changed form — to a vastly changed market. Today, the crossover is the currency, and there are oodles of competition in this segment. Still, The Covenant Car Company, Inc. (which controls both the Chevrolet and MG brands here) surely believes there is much in the Trailblazer that will resonate with the discriminating contemporary car buyers.

The company starts off guns a-blazing (pardon the pun), as it were. “Developed from the ground up and designed to cater to Chevrolet’s global markets, the all-new Chevy Trailblazer is poised to shake up the highly competitive compact SUV segment. This SUV is built to be embraced by a forward-thinking, tech-savvy, and independent audience,” Chevrolet Philippines said in a release.

TCCCI points to a “feature-laden spec list,” highlighted by a turbocharged DOHC 1.3-liter power plant, mated to a CVT, and a “suite of safety features.” Other goodies include enhanced stability control and driver assistance systems, and an eight-inch Chevrolet MyLink with Apple CarPlay and Android Auto connectivity.

The Trailblazer is said to soldier on with what the nameplate stands for, albeit in a more tech-loaded package for “current connected lifestyles.”

Continued the release, “Its head-turning appearance which is reminiscent of the Camaro, sporty stance, and flexible yet comfortable interior, all combine to create an appealing compact crossover that will exceed the expectations of even the most discerning car buyers in the Philippines.”

The new Chevy Trailblazer will be available in two variants: LT and Premier. “A five-year warranty, automatic enrollment to the 24/7 Chevrolet Roadside Assistance for three years, and immediate access to the Chevy Hotline for convenient vehicle service and ownership needs will be included in the purchase.”

“Velocity” learned from a highly placed source who requested to remain anonymous that the all-new 2022 Trailblazer will be priced at P1,488,888 for the LT and P1,618,888 for the Premier. It will come in the following colors: Abalone Pearl White, Bright Red, Dark Red/Velvet, blue, gray, silver, and black. — Kap Maceda Aguila

Malaysian salon paints Squid Game manicures of tiny coffins, green tracksuits

THESE sets of acrylic nails are inspired by the popular South Korean Netflix series Squid Game. — PHOTO FROM MANIQURE.MY

KUALA LUMPUR —  A manicure salon in Malaysia is selling painted and press-on nail designs based on the television show Squid Game, the latest small business to cash in on the soaring popularity of the South Korean series.

The Maniqure Nail Salon on the outskirts of Kuala Lumpur has designed a set of nails for each of the show’s nine episodes. “Red Light, Green Light” features the killer giant animatronic doll from the first episode, while “Hell” includes a picture of the red-suited game officials and a pink-ribboned coffin.

“Is it difficult to draw? Yes, a little bit because … it’s all 100% hand painting, not printing,” said salon co-owner Lim Pei Xin. “Every fine line we have to stop breathing.” Squid Game earlier this week became Netflix’s biggest original series launch, notching up 111 million viewers in less than a month.

The dystopian drama, in which cash-strapped contestants play childhood games with deadly consequences in a bid to win 45.6 billion won ($38 million), has inspired countless memes, Halloween costumes and real-world recreations.

It has also sparked a debate within South Korea about toxic competitive societies and prompted new interest in the country’s culture and language around the world.

Chin Kwan How, co-owner of the Maniqure Nail Salon, said demand for the press-on version of the themed nails had come from international buyers via the business’ website, as well as locals. — Reuters

Poultry demand recovery still uncertain after easing of Metro Manila quarantine 

BW FILE PHOTO

A RECOVERY in demand for chicken is still uncertain following the opening of more businesses in the wake of the Alert Level 3 declaration for the National Capital Region (NCR), according to the United Broiler Raisers Association (UBRA). 

UBRA President Elias Jose M. Inciong said in a mobile phone interview with BusinessWorld that demand for broiler chicken is not expected to immediately pick up with the loosening of the quarantine.

“It is too early to tell because people will probably be conservative and careful. Meanwhile, it is ‘wait-and-see’ for restaurants. I do not think they will purchase in advance and hold more inventory, because what if there is another lockdown and they have so much stock? They will incur losses again,” Mr. Inciong said.  

“Producers are still very conservative because of the high cost of production with prices of corn, soya, and coco oil at high levels,” he added.

Demand for chicken declined as a result of the stricter lockdown settings raised over the NCR and other parts of the country in recent months.

The government downgraded the quarantine setting in the NCR to Alert Level 3 between Oct. 16 and Oct. 31. The quarantine setting allows establishments and other activities at an indoor maximum capacity of 30% for fully vaccinated people and 50% outdoor capacity regardless of vaccination status.

Gatherings such as meetings, weddings, parties, events and indoor activities like amusement arcades are also now allowed under the new quarantine status.  

Meanwhile, Mr. Inciong noted an increase in the farmgate price of broiler chicken, but maintained that it was not related to demand.

“I do not think this is demand-related. It is too early. It is more of a production or supply-related reason due to the difficulties faced by producers such as high production costs,” Mr. Inciong said.  

UBRA estimates that as of Oct. 15, the average farmgate price of an off-sized broiler rose 4.8% to P88 per kilogram (/kg) from price levels recorded on Oct. 8.

The average farmgate price of regular-sized and prime broilers increased 6.4% and 6.7% week on week to P92/kg and P92.65/kg, respectively.

Mr. Inciong said the price of coco oil used in production currently ranges from P77/kg to P87/kg, compared to P50/kg to P60/kg in previous months.

As of Oct. 15, the retail price for whole chicken was steady at P160/kg, according to NCR wet-market price monitoring by the Department of Agriculture.

“I do not expect demand to pick up immediately but hopefully it will slowly recover,” Mr. Inciong said. — Revin Mikhael D. Ochave 

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