Prudential unit’s $1.6-B bond deal in limbo as claims emerge

March 30, 2021 | 12:02 am

A $1.6-BILLION bond deal that a unit of UK insurer Prudential Plc would use to help complete a spinoff has suddenly been thrown into limbo after the company said that two former executives have emerged with potential claims.

The unit, Jackson Financial Inc., isn’t disclosing the nature of the claims, leaving investors puzzled as to why it pulled the plug on the deal just as it was set to price late Thursday. Bond investors were poised to gobble up the debt, with order books six times oversubscribed at the peak of demand, according to a person with knowledge of the transaction, who wasn’t authorized to speak publicly and asked not to be identified.

Jackson “received late notification concerning potential claims by two recently departed executives of the business, which means that a proposed debt transaction will be delayed,” the company said in an statement late Thursday. It said it still expects to complete the so-called demerger in the second quarter.

The company recently announced leadership changes ahead of its planned separation from Prudential. Jackson named Laura Prieskorn as chief executive officer and Marcia Wadsten as chief financial officer, replacing Michael Falcon and Axel Andre who left the company as part of the overhaul, according to a news release. Dev Ganguly was named chief operating officer, while Julia Goatley rejoined Jackson as general counsel, an interim role to replace Andrew Bowden, who left.

A representative for the company declined to comment beyond the statement, and representatives for the banks running the bond deal — Morgan Stanley, Citigroup Inc., and JPMorgan Chase & Co. — declined to comment.

Such delays are rare in the investment-grade debt market, where offerings are typically wrapped up within the same day they’re launched. The setback may impact Jackson’s borrowing costs when it does price the debt, depending on how long it takes to resolve the matter, according to CreditSights. That was the case with ING Groep NV last year, which had to pay up after reviving a bond sale that fell apart amid the resignation of its chief executive officer. The Dutch lender set a higher coupon and pared the deal size after losing billions of dollars in orders, as the resurrected deal also came in late February amid the onset of the coronavirus in the US.

Before Jackson’s bond sale was derailed, the large number of orders on the deal had allowed it to slash the borrowing costs being proposed. The extra yield over Treasuries on a 10-year portion was cut by 35 basis points to 165 basis points, according to a person with knowledge of the deal.

Prudential, which focuses mainly on life and health insurance, is splitting off the US business as it seeks to expand in high-growth markets in Asia and Africa. The firm last year said it planned to separate Jackson via an initial public offering in 2021. The insurer abandoned that idea in January, announcing the demerger instead. — Bloomberg

Stuff to do (03/30/21)

March 30, 2021 | 12:02 am

Donate Globe Rewards points for Lent

GLOBE provides opportunities to donate to charitable causes through its Globe Rewards program. Customers who would like to do their share for the environment, communities and the nation, can donate their Rewards points that will expire on March 31, 2021 to their chosen non-government organizations (NGOs), charitable institutions, and foundations for as low as P1. Given the country’s current situation, customers are encouraged to donate to the PGH Medical Foundation, Inc. to help provide much-needed support for healthcare frontliners and coronavirus disease 2019 (COVID-19) patients. Points donated will be used to support health workers’ expenses on housing, meals, PPEs and other various protective gear. For those looking to support other meaningful causes, the following organizations are also part of the platform and are in need of support: ABS-CBN Foundation which supports children under the care of Bantay Bata 163 and Sagip Kapamilya’s relief and rehabilitation efforts; Ayala Foundation which provides internet connectivity to public school teachers; Hineleban Foundation which restores the primary forests of Bukidnon and Lanao del Sur; JCI Manila which beautifies the walled city of Intramuros through Philippine native trees; Moments with Father Jerry Foundation which supports the elderly and sick priests and brothers under the Society of the Divine Word; the Natasha Goulbourn Foundation which assists in the operations and training of new frontline responders for the 24/7 hotline for suicide prevention and emotional crisis; Philippine Animal Welfare Society Philippines which aids in medical treatments of rescued animals; The Rotary Foundation which supports efforts to eradicate polio worldwide; Save Philippine Seas which educates children on the wonders of marine biodiversity; and the Walang Iwanan Alliance which provides meals and nutrition to underserved families within Metro Manila. Donations may be done through the Globe Rewards App http://glbe.co/GRewardsApp. During the height of the community quarantine last year, a record P36 million in cash donations for the benefit of health workers and frontliners in 11 medical institutions nationwide was successfully raised by 491,821 loyal Globe customers through their Rewards points. These were used to provide much-needed test kits, alcohol, and complete sets of personal protective equipment (PPEs) such as surgical masks face shields, and surgical gowns. To know more about Globe’s Donate campaign, visit https://www.globe.com.ph/help/rewards/donate-campaign.html.

Samsung’s 4-Day Easter Sale

SAMSUNG will hold a Four-day Easter Sale from April 1 to 4. It will offer discounts and bundled promos this Easter on select products, from Smart TVs and soundbars, to digital appliances, and even smartphones and tablets. Among the Easter deals are: purchase select 55- and 65-inch Samsung Crystal UHD TVs bundled with a Soundbar and save up to P17,499; enjoy up to 37% off on select digital appliances from any Samsung-authorized online partner including Window-Type Inverter Air Conditioner, Top Mount No Frost Refrigerator, Top Load Fully Automatic Washing Machine, Jet Stick Vacuum Cleaner, and Air Purifier; get a bundle of two 34sqm Air Purifiers for P19,965. Galaxy devices are also included in the sale. Buy the new Galaxy S21 Ultra 5G and get a free 45mm Galaxy Watch3 in silver worth P20,990. Customers who purchase the Galaxy S21+ 5G and Galaxy S21 5G will get a free 41mm Galaxy Watch3 in silver worth P18,990 and a Galaxy Watch Active2 worth P11,990, respectively. The Galaxy Note20 Series and Galaxy S20 FE are offered with discounts up to P5,000. The Galaxy A01, Galaxy A01 Core, and Galaxy A02s are also available with a buy one, get the second unit at 50% off deal. Customers can also avail of a discount of up to P5,000 on the Galaxy Tab S7 Series and Tab A 8.0. Exclusive online deals on Samsung.com await customers including up to 33% off on Galaxy Buds Live or Galaxy Buds+, 30% off on 90 sqm Air Purifier, and more. Cash discounts are not valid in conjunction with other cash discounts being offered in some stores. Visit Samsung.com for details on Samsung’s 4-Day Easter Sale.

Ballet Philippines video for Women’s Month

BALLET Philippines has partnered with the Yuchengco Museum to present the world premiere of Ode to the Feminine to celebrate Women’s Month. The performance depicts women’s empowerment with “The Power of Choice” as its central theme. The ballet focuses on the female-centric paintings by National Artists Botong Francisco and Fernando Amorsolo — Courtship Ritual and Princess Urduja, respectively — that are displayed in the Museum. The video can be seen here: Ode to the Feminine (ballet.ph).

Celebrate Easter at home with Edsa Shangri-La

RELAX and enjoy an intimate Easter celebration at home with Edsa Shangri-La, Manila’s specially curated take-away Easter set menus and goodies. The Gourmet On the Move Easter specials feature creations from HEAT, Summer Palace, Senju, and The Bakeshop starting at P2,500 net, available until April 4. HEAT’s traditional Filipino Easter set with a twist featuring arroz a la valenciana, pancit sotanghon guisado, kalderetang baka, lechon belly stuffed with laing, banana heart with coconut cream, Brazo de Mercedes, and bibingka cheesecake, that comes with condiments and steamed rice. This set for five may be ordered from Gourmet On the Move at P4,500 net. Senju kitchen brings authentic flavors of Japan with two Easter sets to choose from, complete with appetizer, main course, and dessert at P5,000 net for two persons and P10,000 net for five persons. Summer Palace has a special four-course Easter feast featuring the restaurant’s bestsellers at P2,588 net per person, with a minimum of two orders for take-away or delivery. The Bakeshop’s selection of luxurious Easter hampers brimming with Easter chocolates and goodies start at P2,500 net. To learn more about Edsa Shangri-La’s Easter offerings, visit https://bit.ly/EdsaShangriLaEaster2021. For inquiries, orders, and reservations, call 8633-8888 or e-mail heat.esl@shangri-la.com.

Resorts World Manila Holy Week specials

RESORTS World Manila’s (RWM) signature restaurants are offering a variety of seafood and vegetable dishes this Lenten season. Try Silk Road’s Salmon Tandoori (P665) and Wok-Fried Garden Greens (P200). Veggie-lovers can go for Happy 9’s Wok-Fried Round Cabbage with Dried Shrimp (P448) and Stir-Fried Seasonal Vegetables (P418). Garden Wing Cafe’s Seared Salmon Fillet (P700) is also a must-try. Enjoy these seafood and veggie dishes at home through RWM’s signature food-delivery service, Delishvery. Call +63 (2) 7908-8885 or text 0917-878-8856 for orders.

Conrad celebrates Easter with takeaway feasts

CONRAD Manila celebrates the coming Easter with Signature Takeaway Feasts and Easter Goodies conveniently available at the e-Store for takeaway and delivery. Brasserie on 3’s Easter Family Roast Takeaway Menu features ginataang tilapia in coconut milk, 48-hours US choice beef short rib (1.6 kg), and whole crispy roast suckling pig filled with aromatic rice, garlic and lemon grass; all served with roasted carrots, beets, cherry tomatoes, pumpkin, steamed rice, and buttered beans and bacon. Price starts at P5,150 nett and serves a family of four to six. China Blue by Jereme Leung offers well-curated sets: Dim Sum featuring House specialty truffle mushroom bun, steamed pork and shrimp dumpling siomai, seafood bean curd sheet, and more; BBQ roast with highlights Honey-glazed BBQ pork neck, bacon scallops, half-roasted duck, to name a few, and Chef’s Specials of Homemade tofu with spinach and chicken, deep-fried spareribs with garlic, shrimp with XO sauce and seasonal vegetables, stir-fried beef with Chinese walnuts, and smoked duck with cigar spring rolls. Price starts at P2,200 nett. To celebrate Easter, Conrad Manila’s Bru Coffee Bar presents a playful selection of Easter Bunnies, Eggs and more made from premium chocolates, all available to order online for takeaway or delivery. Kids and kids at heart also get to enjoy a special Easter Painting Kit Set, priced at P950 nett, which includes bunny and egg molds, paint and brushes. The Easter Goodies is available until April 4. For orders, visit conradmanilaestore.whyqueue.shop, call 8833-9999 or e-mail conradmanila@conradhotels.com.

AgriNurture receives ‘Medium Green’ rating for 75-M euro bonds

March 30, 2021 | 12:02 am

ANTONIO L. TIU-led AgriNurture, Inc. (ANI) announced that it had received a “Medium Green” rating from an international research and rating agency for its planned 75-million euro green bonds.

The listed agricultural firm said in a statement on Monday that the rating given by Cicero Shades of Green is for “projects and solutions that represent steps toward the long-term vision.”

ANI seeks to issue up to 75 million euros of green bonds with a maturity of up to seven years.

Proceeds from the green bonds will be allocated to ANI’s agricultural project expansion related to climate change adaptation and reduced environmental footprint, and for the improvement of production and trade of organic produce.

“ANI has previously secured the authority to issue the long-term green bonds as well as the issuance of commercial papers, with terms and conditions to be recommended by management and to be approved by the Board of Directors,” the statement said.

According to ANI, the rating showed that it has strong governance procedures and ambitions to further improve.

Some of the company’s targets include being climate neutral by 2030 and other initiatives on renewable energy and organic farming, all of which are part of its commitment to be a top sustainable producer of organic agricultural food products.

ANI said Cicero Shades of Green provides independent evaluations on green bond investment plans to determine their environmental strength. Its ratings also give investors a view of the environmental quality of green bonds.

Current and upcoming projects of ANI include organic farming, renewable energy, energy efficiency, environmentally sustainable management of living natural resources and land use, clean transportation, and digital agriculture.

Brands under ANI include Big Chill, Tully’s, Cheesecake Etc., and Fit Bites. The company exports its products to countries in Asia, Middle East, Europe, and North America.

On Monday, shares of ANI at the stock exchange rose 1.14% or eight centavos to end at P7.08 each. — Revin Mikhael D. Ochave

Damosa Land hopeful as signs of recovery seen

March 30, 2021 | 12:01 am

By Jenina P. Ibañez, Reporter

DAMOSA LAND, Inc. is expecting recovery this year after the coronavirus disease 2019 (COVID-19) caused a slowdown across its property segments.

The Davao-based property developer started seeing an uptick in business at the end of the third quarter last year, Damosa Land President Ricardo F. Lagdameo said in an online interview on Friday.

The real estate arm of the Floirendo-owned Anflo Management and Investment Corp. offers residential, office, commercial, tourism, and industrial spaces.

“For instance, residential sales have actually been quite decent considering the whole situation. Inquiries to our other projects, whether it was our offices, our industrial spaces — inquiries already started to really pick up in the fourth quarter of last year,” Mr. Lagdameo said.

Some segments hit hard by the pandemic, including the loss of foot traffic for commercial spaces and tourism, have also seen slight recovery. Some new tenants and visitors have started occupying their commercial and hospitality spaces respectively, he said.

“If we hit our targets for this year — there are certain milestones we need to hit — we’ll actually match our 2019 numbers this year already,” Mr. Lagdameo said.

The milestones, he said, include finishing and turning over residential construction delayed last year, leasing out 15-20% of its newly completed office space, and selling or making long-term leases on two to three hectares of its industrial park.

The office sector maintained some resiliency last year due to business process outsourcing, Mr. Lagdameo said, while the hospitality segment suffered.

Davao remains an outsourcing hub outside Metro Manila due to its skilled manpower, with 2021 office recovery likely to be led by demand from both traditional and outsourcing occupants, Colliers Philippines said in a December report.

Damosa Land has been receiving an uptick in outsourcing inquiries starting in the fourth quarter last year, especially with renewed business confidence among United States firms after the country’s COVID-19 vaccine rollout started. The interest, however, is still far from pre-pandemic levels.

Meanwhile, the company is still in talks with two foreign agri-industrial firms that could locate at its Anflo Industrial Estate in Panabo City.

“We’re looking to close these in the second quarter of this year,” he said of the European and Asian companies.

“If we are able to bring in these two locators in the next couple of months, these will probably be the biggest deals to date that we’ve done for the company,” he added, referring both to the space they will occupy and the size of the investments.

Outstanding debt rises to P10.4 trillion at end-February as gov’t borrowings increase

March 30, 2021 | 12:01 am

THE GOVERNMENT’S outstanding debt inched up by 0.8% to P10.405 trillion at the end of February from the month prior, the Bureau of the Treasury (BTr) reported.

Latest BTr data showed the government’s debt stock rose from the P10.327 trillion recorded at end-January, after more borrowings last month. Meanwhile, the debt pile climbed by 27.4% from the P8.166 trillion seen as of February 2020 and by 6.2% from the P9.8 trillion level at the start of 2021.

Of the P10.41-trillion debt stock, 71% were sourced from local creditors and the rest were from foreign lenders.

Outstanding domestic obligations went up by 0.5% from the month-ago level to P7.363 trillion as of February due to increased borrowings that month. Year on year, it jumped by 35.1%.

Since the year started, the local debt pile rose by 10% because of the P540 billion in provisional advances from the Bangko Sentral ng Pilipinas (BSP) in January.

Government securities issued to the domestic market stood at P6.822 trillion last month, up 1.9% month on month and 25.2% higher year on year.

Meanwhile, the external debt stock went up by 1.4% to P3.043 trillion as of February from P3 trillion in January. Year on year, foreign debt grew by 12% from the P2.72 trillion seen at end-February 2020. However, the external debt stock went down by 1.9% since the year began as the government repaid some of its maturing debts.

The BTr attributed the monthly increase in external outstanding debt to the new foreign loans worth P14.53 billion and foreign exchange adjustment worth P36 billion after the peso weakened to P48.653 per dollar last month from P48.076 the month before. However, the net appreciation of the peso versus third currencies trimmed the overall debt by P9.7 billion.

The outstanding foreign debt was comprised of P1.36 trillion in direct loans and P1.68 trillion in global bonds issued so far, broken down into P1.34 trillion in dollar-denominated bonds, P115 billion in euro bonds, P112 billion in Japanese samurai bonds, P85 billion in peso global bonds, and P30 billion in Chinese panda bonds.

Meanwhile, total guaranteed obligations went down by 2.1% from the month prior to P446.72 billion in February after the BTr’s net redemption of local and foreign guarantees worth P9.99 billion and P340 million, respectively.

“Third-currency exchange rate fluctuations further lowered the peso value of external guarantees by P1.77, slightly offsetting the P2.43 billion effect of local currency depreciation against the dollar,” it added.

Year on year, outstanding guaranteed debt fell 7.8% from P484.36 billion.

The country’s outstanding debt was equivalent to 54.5% of gross domestic product (GDP) last year, up from the record low of 39.6% in 2019, after the government ramped up borrowings to plug its ballooning deficit amid the global health crisis.

The government is planning to raise P3 trillion this year from domestic and external lenders to help fund its budget deficit seen to hit 8.9% of GDP.

Official estimates showed the government’s debt stock could rise to P11.98 trillion by end-2021. — B.M. Laforga

Cebu’s first indoor dog park opens

March 30, 2021 | 12:01 am

ROBINSONS Malls has opened its second dog park — and Cebu’s first indoor dog park — at Robinsons Galleria Cebu. The dog park, located at the second level of Robinsons Galleria Cebu, has an array of colorful agility equipment. Created in partnership with TopBreed, the spacious dog park was created for pets to freely play, exercise and enjoy quality time with their owners. It’s also a safe space for dogs to socialize with other dogs and humans. Use of this new mall amenity is free, Users are encouraged to become Happy Pets Club members, and enjoy exclusive invites to pet events, special giveaways and discount perks. To join, visit the nearest Robinsons Mall branch, fill-out the registration form, and submit the updated vaccination records and photo of the pet.

First Philec to roll out ‘super green’ transformer this year

March 30, 2021 | 12:01 am

DISTRIBUTION transformer manufacturer First Philec, Inc. is set to launch a “super green” transformer model made out of a 100% recyclable and biodegradable materials in the market this year.

First Philec, a wholly owned subsidiary of the Lopez-led First Philippine Holdings Corp. (FPH), said that it had scheduled the transformer’s rollout in the fourth quarter of 2021, initially for the local market.

In a press release on Monday, First Philec President Ariel C. Ong was quoted as saying that the company’s new transformer model offers the “highest efficiency” in its class and allows for extended product life use, aside from helping customers to reduce their carbon footprint.

“All metallic parts of our upcoming transformer model are recyclable; while all its non-metallic components will be biodegradable or recyclable,” Mr. Ong said.

“The new transformer model will use an insulating coolant from natural ester, which is a vegetable-based and non-polluting oil product from renewably sourced and sustainably grown crop seeds. Any accidental release of the transformer’s non-metallic parts poses no risk to the environment due to its full biodegradability,” he added.

The “super green” transformer also features an amorphous core, a magnetic material which will contribute to higher efficiency levels and lower losses, according to First Philec Customer Development Head Luis Antonio D. Trinidad.

Mr. Trinidad said that the firm’s new transformer model is seen to “reduce distribution losses and improve distribution efficiency to create savings, and this will benefit distribution utilities and their customers.”

Standard manufacturing practices in many countries rely on petroleum and single-use plastic packaging, among others, Mr. Ong noted. But the firm’s use of environment-friendly raw materials and avoidance of plastic waste will mark a departure from this practice, he said.

The firm is still finalizing the price of the transformer model.

First Philec has installed 250,000 transformers across the country, and currently has two plants inside the First Philippine Industrial Estate in Batangas.

FPH, the parent firm of First Philec, earlier said that its attributable net income last year slid 22% to P9.9 billion as revenues dropped due to the economic disruptions caused by the global health emergency.

FPH’s major business segments are in manufacturing, power generation, real estate development, and construction and other services.

Shares of FPH in the local bourse. improved 1.20% or 85 centavos to finish at P71.45 apiece on Monday. — Angelica Y. Yang

2GO Group, Inc. sets schedule of virtual stockholders’ meeting

March 30, 2021 | 12:00 am

Philippines ranks 110^th in terms of protecting children’s welfare

March 30, 2021 | 12:00 am

How PSEi member stocks performed — March 29, 2021

March 30, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, March 29, 2021.

Peso climbs on signing of tax reform law

March 29, 2021 | 9:00 pm

THE PESO strengthened versus the greenback on Monday following the passage of a key tax reform law and a decline in oil prices.

The local unit closed at P48.415 per dollar yesterday, gaining 7.5 centavos from its P48.49 finish on Friday, data from the Bankers Association of the Philippines showed.

The peso opened Monday’s session at P48.47 versus the dollar. Its weakest showing was at P48.51, while its intraday high was its close of P48.415 against the greenback.

Dollars exchanged declined to $576.4 million yesterday from the $740.8 million seen on Friday.

The peso strengthened on the back of the signing of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act on Friday, a trader said.

Republic Act 11534 was signed by President Rodrigo R. Duterte on Friday. It will immediately bring down corporate income tax to 25% from 30% and will further cut it by a percentage point every year from 2023 to 2027 until it reaches 20%.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the peso’s appreciation to lower oil prices.

“[T]his could reduce the country’s oil imports,” Mr. Ricafort said in a text message.

After four sessions of price swings, oil prices slightly stabilized on Monday as continued efforts to dig out the giant container ship clogging the Suez Canal eased market worries, Reuters reported.

Brent oil slipped 0.3% or 18 cents to $64.39 a barrel by 0141 GMT while the price of US crude dropped 22 cents or 0.4% to $60.75 per barrel.

For today, the trader expects the local unit to move within P48.30 to P48.50 per dollar, while Mr. Ricafort gave a forecast range of P48.36 to P48.46. — L.W.T. Noble with Reuters

PHL stocks rise on bargain hunting, CREATE Act

March 29, 2021 | 9:00 pm

PHILIPPINE SHARES closed in the green on Monday on bargain hunting ahead of the Holy Week break and improved sentiment following the signing of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

The benchmark Philippine Stock Exchange index (PSEi) gained 63.15 points or 0.96% to close at 6,607.78 on Monday, while the broader all shares index went up by 20.30 points or 0.51% to 3,988.09.

“The market proved its resiliency as it ended higher despite starting the day with a substantial loss. The tightening of quarantine restrictions caused some panic selling at the open, however, buyers were quick to come in and pick up shares at cheaper prices,” Christopher John J. Mangun, research head at AAA Southeast Equities, Inc., said via e-mail.

“The optimism may be coming from the government’s commitment to the economy’s recovery despite the recent setback,” Mr. Mangun added.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said bargain hunters took advantage of the market’s decline earlier on Monday and from the previous trading day.

“Malacañang’s signing of the CREATE Act into law also helped spur optimism in Monday’s trading,” Mr. Tantiangco added.

The CREATE Law, signed by President Rodrigo R. Duterte on Friday, reduces the country’s corporate income tax rate to 25% from 30%. It will further slash the rate by a percentage point every year from 2023 to 2027 until it reaches 20%.

Mr. Duterte vetoed some sections of the measure, including one that allows incumbent and future presidents to exempt an investment promotion agency from CREATE’s coverage and another section that increases the threshold of low-cost housing eligible for value-added tax exemption to P4.3 million from P2.5 million.

Majority of the PSE’s sectoral indices closed in the green on Monday, except for mining and oil, which declined by 42.99 points or 0.49% to 8,590.95; and industrials, which fell by 25.22 points or 0.29% to 8,565.50.

Meanwhile, property increased by 72.45 points or 2.21% to finish at 3,349.41; financials went up by 19.05 points or 1.35% to 1,420.69; holding firms gained 38.02 points or 0.57% to 6,643.42; and services rose by 4.75 points or 0.33 to close at 1,440.73.

Value turnover increased to P7.27 billion on Monday with 2.88 billion shares switching hands, from the P6.28 billion with 4.91 billion issues traded on Friday.

Decliners outnumbered advancers, 116 against 97, while 44 names closed unchanged.

Foreigners turned buyers, with net inflows amounting to P30.43 million on Monday, versus the P724.71 million in net foreign outflows logged on Friday.

“Despite the gains, we are not out of the woods yet as the main index is coming up against resistance at 6,600 to 6,700,” AAA Southeast Equities’ Mr. Mangun said. “We may see it give back some gains in the coming days.” — Keren Concepcion G. Valmonte