Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 6931

Home buyers now looking for smart, interconnected properties

By Patricia B. Mirasol, Reporter

TO MEET the lifestyle demands of the new normal, experts said real estate and telecommunications firms should work together to offer properties and communities that are “smart” and interconnected.

Digital connectivity is a must and can be leveraged as a differentiator among property buyers, they added.

“The intention is to enable property developments that are digital savvy and future proof,” Michelle Y. Ora, head of strategic property of Globe Telecom, said during a Feb. 11 roundtable discussion on intelligent homes organized by Lamudi, an online real estate marketplace.

“Today, property buyers look for power, water, and internet connectivity. Having a strong and reliable connectivity in a development is one of the things that make customers decide to buy,” she added.

In the “A Forecast on Philippine’s Residential and Commercial Real Estate in 2021” report, Lamudi said the property sector may be well on its way to recovery as economic factors and investor attitude improve. The general demand for residential and commercial real estate in the country is expected to bounce back this year.

Lamudi also noted that apartments experienced the greatest growth in the number of listings from the first quarter to the last quarter of 2020. This may be in response to the growing number of property seekers either looking for affordable housing solutions near the workplace, or investment opportunities.

“We’re seeing a demand for smart buildings, homes, and condominiums,” Joey R. Bondoc, associate director for research of Colliers International Philippines, said during the same forum. “One of our recommendations for buyers is to look for projects that are adaptable to the work-from-home scheme.”

Colliers believes most companies will continue to implement work-from-home schemes.

“Investors, especially first-time residential investors, should look at structures where it is possible for employees to support their job requirements moving forward. This is something developers can leverage, especially with new projects,” Mr. Bondoc said.

Colliers also noted the modernization of warehouses and the conversion of vacant mall spaces into fulfillment centers and logistics facilities.

“There has been a rising demand for e-commerce even pre-pandemic,” Mr. Bondoc said. “To be able to tap this demand for logistics, developers have been modernizing their existing warehouses.”

The country’s consumer-driven economy and the prolonged lockdown have further increased the demand for in-mall facilities, particularly in Metro Manila. “Many of the deliveries happen in Metro Manila. Mall operators are doing what the market requires at this point,” he said.

Fiber is the basic requirement for telecommunications infrastructure, Ms. Ora said. Such infrastructure has to be planned three to four years before the completion of a building.

“Be ready for whatever customers need in the future,” she added. “When we partner with [property developers], it’s to help build with brand equity. That can be the differentiator offered to buyers.”

There is a need to update the National Building Codes — which were written in the 1930s — in order to enable widespread connectivity. “In other countries, it’s the government that deploys the fiber infrastructure on the road,” said Ms. Ora. “Telcos don’t have to worry about right of way and red tape.”

Ayala unit secures funding for Australia solar farm

THE Ayala group and its Australian partner have secured AU$619 million, or around P23.1 billion, in bank financing for a 400-megawatt (MW) solar farm project in New South Wales.

In a press release on Monday, listed firm AC Energy Corp. said Australian banks Westpac and Commonwealth Bank of Australia, along with Bank of China, will provide debt financing for the initial stage of the project.

The financial closure for the project’s first stage would cover 400 MW of alternating current out of a combined 720 MW of solar power and 400 MW-hour (MWh) lithium-ion battery storage.

“This is the product of a fruitful partnership with UPC and our local Australian team. We look forward to helping Australia achieve and exceed its long-term decarbonization goals by continuing to develop and construct more renewable energy projects in the country,” said Patrice R. Clausse, chief operating officer of AC Energy International, in a statement.

He described the venture as AC Energy’s “major milestone” as it marked the firm’s first project in Australia.

AC Energy said that it had committed $320 million (P15.32 billion) of equity for the project, New England Solar Farm, which is under UPC\AC, a joint venture between AC Energy Infrastructure Corp. (ACEIC) and UPC Renewables Australia.

Ayala Corp. unit ACEIC holds majority interest in AC Energy.

The solar farm is seen to significantly contribute to AC Energy’s target of reaching 5,000 MW of renewables capacity by 2025, in line with its goal to become the largest listed renewables platform in Southeast Asia.

It is targeted to connect to the grid and initially start producing energy by July next year. The rest of the project is projected to begin operations around the end of 2023, AC Energy said.

The listed firm said that it is also planning to install a 400-MWh lithium-ion battery storage facility in the area, which would help in ensuring grid stability and provide energy at peak periods. The first 50 MWh of the facility, which is supported by the NSW Emerging Energy Program, is expected to become operational by the middle of next year.

Once completed, the solar farm would produce enough energy to power up around 250,000 typical households in New South Wales per year, and help fill in the gap left by the expected closure of the AGL Macquarie’s 2,000-MW Liddell Power Station by 2022.

The project is also seen to bring in 500 construction jobs, and will generate employment opportunities for locals in Uralla, NSW, and the region.

Green Light Contractors Pty. Ltd, the local subsidiary of Spanish-listed contractor Elecnor, S.A., is in charge of constructing the solar farm.

AC Energy said it expects the solar farm to participate in the NSW Electricity Infrastructure RoadMap bidding process, which aims to deliver lower energy prices to consumers.

“The New England Solar Farm is the first project within our large portfolio to reach financial close and we are very excited about building our first project in Australia,” UPC Renewables Executive Chairman Brian Caffyn said.

“This is a very large energy project even for Australia and we are proud to be associated with the New England Solar Farm and the local community and helping to transition NSW towards a clean, lower cost energy future,” he added.

Around two weeks ago, AC Energy President and Chief Executive Officer Eric T. Francia told reporters that the company is setting its sights on a new renewable energy target for 2030, where local and foreign projects would have a 50-50 portfolio mix.

On Monday, shares in AC Energy inched down 2.67% or 0.21 centavos to close at P7.66 apiece. — Angelica Y. Yang

Arthaland tops off green office project in Arca South

ARTHALAND CORP. recently topped off its green office development, Savya Financial Center North Tower in Arca South, Taguig City.

The company built the North Tower in partnership with Japan’s Mitsubishi Estate.

Savya Financial Center is a two-tower office development touted to be a next-generation business center. It has top-class amenities, a fully-integrated retail area, zero contact building features, and generous green and open spaces.

The North Tower is scheduled to be completed by November 2021.

“From the very beginning, we have been aligned with Arthaland’s corporate vision to create high quality and sustainable buildings for our next generation. Through this strong partnership, the Savya Financial Center became our company’s first venture in the Philippines. The success of this development will certainly become the foundation for our long-term partnership with Arthaland,” Masato Aikawa, managing director of Mitsubishi Estate Asia, said in a statement.

For the Savya project, Arthaland and Mitsubishi Estate will introduce innovations such as remote virtual concierge and semi- autonomous security surveillance robots “to promote a safer, contactless office environment.”

“Our company, Arthaland, is making good on its commitment to all stakeholders to top-off the North Tower of Savya Financial Center on schedule. Building on the success of our world-renowned and multi-awarded Arthaland Century Pacific Tower in Bonifacio Global City and the Cebu Exchange in Cebu City, Savya Financial Center is poised to become the preferred address in what will be the most highly connected business district in the country,” Jaime C. González, vice chairman and president of Arthaland, said.

Savya Financial Center is expected to become a multi-certified green building. It has been pre-certified for Leadership in Energy and Environmental Design Gold certification, and on track for the Philippine Green Building Council’s BERDE certification, International WELL Building Institute’s Well Building Standard and International Finance Corporation’s Excellence in Design for Greater Efficiencies certification.

Jollibee records 34.5% profit slide to P2 billion

JOLLIBEE Foods Corp. posted P2.05 billion in attributable net income in the fourth quarter of 2020, down 34.5% from a year earlier, but turning around from the losses incurred in the previous three quarters.

Still, Jollibee ended 2020 with a net loss of P11.5 billion, a reversal of a restated P7.3-billion net income in 2019.

The restated 2019 net attributable income reflects the company’s acquisition of The Coffee Bean & Tea Leaf, which allowed it to gain P4.4 billion from the transaction.

Jollibee posted P7.1 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) in the fourth quarter.

Fourth-quarter revenues, meanwhile, slowed by nearly 30% to P36.7 billion compared with P52.42 billion in the same period in the previous year.

Jollibee said the decline was due to the permanent halt of operations of four commissaries and 486 stores, and a low sales per outlet because of the coronavirus disease 2019 (COVID-19).

In May 2020, it launched its business transformation program, which focused on the rationalization of the company’s operations as it adjusted to the global pandemic. The program was allotted P7 billion in June 2020, and have since used up 96% or P6.7 billion by the end of the year.

The program reorganized 262 of its stores. Jollibee is now reopening many of its stores, which temporarily closed.

As of Dec. 31, up to 96% of the company’s shops had begun operating again. All of these have generated profit in the fourth quarter.

In the Philippines, 98% of shops are operating. Sales recorded a decline of 35.2% from the 45.6% slowdown recorded in the third quarter.

All outlets in China have since reopened, where store sales grew by 0.2% after declining by 7.7% in the previous quarter.

Stores in North America have reopened, where 94% of Jollibee shops have resumed businesses. Without taking into account sales from The Coffee Bean & Tea Leaf, sales in the region grew by 3.5% from a decline of 6.6% in the third quarter.

“Our strong profit recovery shows our organization’s capability to execute complex and massive undertaking in a very short time like the Business Transformation. It was a very difficult and painful program, but the right thing to do for the long-term good of the business and the organization,” Jollibee Chief Executive Officer Ernesto Tanmantiong said in a statement.

The company is keeping a positive outlook for the rest of this year.

“We look forward to sustained recovery of the business as the world gradually returns to normalcy, aided by the introduction of new vaccines,” Mr. Tanmantiong said.

The official also said that the company is planning to open over 400 new stores, majority of which will be in North America, Vietnam, and China to make up for the losses incurred in 2020.

“In 2021 and the years ahead, [Jollibee’s] sales and profit growth will be driven by its international business. We believe that out of this pandemic, we will emerge as a stronger business and organization,” Mr. Tanmantiong added.

Jollibee shares at the exchange on Monday rose by 0.80 points or 0.45% to close at P179.50 apiece. — Keren Concepcion G. Valmonte

Viva’s new boy group sings in regional languages

LOCAL entertainment agency Viva has launched its newest boy group, ALAMAT, which is aimed to merge “modern pop music and Pinoy cultural heritage,” according to a press release.

The nine-member group — composed of Taneo, Mo, Jao, Kin, Tomas, R-Ji, Valfer, Gami, and Alas — has released its debut single, “kbye.” The song is sung in seven Philippine languages: Tagalog, Ilocano, Kapampangan, Bicolano, Waray-Waray, Hiligaynon, and Bisaya. The members had a hand in writing the song’s lyrics.

“The idea is, if we seek to genuinely embody the Philippines, ALAMAT should reflect the country’s cultural and linguistic diversity,” Ninuno Media, which serves as the creative director of the group, said in the statement.

Each member of the group comes from different parts of the Philippines: Taneo is from Kalinga, Mo from Zambales, Jao from Pampanga, Kin from Quezon City, R-Ji from Eastern Samar, Valfer from Negros Occidental, Gami from Bohol, Tomas from Albay, and Alas from Davao City.

“A unique prerequisite in the application process, aside from potential in singing and dancing, is the individual’s proficiency in his native language. From the very beginning, ALAMAT was envisioned to be a multilingual boy group that would aim to normalize the use of regional languages in mainstream music,” Viva said in the release.

ALAMAT (whose name is the Filipino term for “legend”) was also formed with the “counter-K-pop” concept, in that while it uses the K-pop formula of “intensive training, audiovisual music, commercial appeal, etc.,” it is meant to promote Filipino culture.

“As the boundaries of P-pop continue to expand, ALAMAT sets itself apart by using the tropes of Western pop music and K-pop to create a distinct audiovisual brand of music that is heavily influenced by the sights and sounds of the Philippines, both modern and ancient,” the company said.

ALAMAT members were chosen after months of auditions held all over the country. The final members underwent nine months of training in singing and dancing, physical fitness, and personality development under vocal coach Zebedee Zuniga and dance coach Jim Amen. The training is bound to continue for years after their debut, according to the company.

ALAMAT is the second boy group to debut this year following the K-pop concept after Star Magic’s BGYO which debuted in January.

“Kbye” is now available in all digital music stores. Watch the music video here: ALAMAT-‘kbye’ (official M/V)-YouTube. — ZBC

DMCI launches 2nd tower of Pasig City condo

DMCI PROJECT Developers, Inc. (DMCI Homes) recently launched the second tower of its Allegra Garden Place condominium in Pasig City as it anticipates growing demand.

The property arm of DMCI Holdings, Inc. launched the Soraya tower last month, with units ranging from 30 to 83 square meters (sq.m.).

DMCI Homes Vice-President for Project Development Dennis Yap said the property will likely benefit from an increase in business activities as the Bonifacio Global City-Ortigas bridge connecting travel between Pasig, Mandaluyong, Taguig, and Makati is targeted to be finished this year.

“We are gearing towards recovery from the pandemic by taking advantage of the potential opportunities presented by these big-ticket infrastructure projects,” he said in a press release on Saturday.

He added that stations of the planned Metro Manila subway project would also be close to the property. Partial operations of the underground railway will start by yearend, the Transportation department said.

Units have a pre-selling price of P4.31 million and higher, with an expected turnover in July 2024 for the first building and July 2025 for the second.

DMCI said that it is reaching out to investors looking for properties with big rental and capital appreciation potential in the 1.2 hectare two-tower condominium project launched in 2019.

Allegra Garden Place has studio units, 1-3 bedroom units, and amenities including a roof garden, pools, game area, gym, and multi-purpose court. — Jenina P. Ibañez

SM Prime reports 53% income fall to P18B

SM PRIME Holdings, Inc. recorded a 52.8% decline in net income to P18 billion in 2020, with its mall business segment posting a double-digit fall in revenues, a press release from the Sy-led firm showed.

Consolidated revenues added up to P81.9 billion, down 30.8% from P118.3 billion in the previous year.

SM Prime’s mall business took the biggest hit — slowing by 59.2% to P23.6 billion in revenues from P57.8 billion in 2019.

Revenues of the holding firm’s residential business went up by 6.4%, while commercial properties recorded a 4.3% increase.

In a disclosure to the exchange on Monday, SM Prime said its local malls earned P21.8 billion last year, a 55% decrease from the P48.4 billion recorded the previous year.

Regions in the Philippines went under several lockdowns last year in an attempt to curb the spread of the coronavirus disease 2019 (COVID-19). Malls were either closed or were operating at a limited capacity as the government restricted the public’s movement.

Restrictions were eased in the second half of the year, in an attempt to gradually reopen the economy.

“We encourage our fellow Filipino to keep supporting our local businesses while practicing safety protocols at all times,” SM Prime President Jeffrey C. Lim said in a statement.

The company’s residential business revenues reached P46.5 billion last year despite the health crisis, a 6.4% increase from the P43.7 billion recorded in the previous year.

Operating income grew by 15.9% to P19.7 billion from P17 billion. Reservation sales amounted to P99 billion last year, up by 10% after previously recording P90 billion.

Commercial properties saw its business operating income grow to P3.9 billion from P3.8 billion. Revenues from hotels and convention centers slowed by 68.6% to P1.6 billion from P5.1 billion.

SM Prime expanded its mall services in Mindanao by opening SM City Butuan and SM City Mindoro in the last quarter of 2020. The company also opened to the public its Olongapo City Convention Center in Zambales.

The company is collaborating with the Philippine Red Cross by offering spaces for the agency’s COVID-19 saliva transcription-polymerase chain reaction (RT-PCR) testing. SM Megamall and SM Mall of Asia host testing sites to help the government in its campaign to ease the health crisis.

The SM Mall of Asia Arena in Pasay City acts as a swabbing facility for frontliners and travelers arriving in Metro Manila.

“SM Prime remains committed in its effort to support the national government and other organizations to contain and combat the spread of COVID-19 in the country,” Mr. Lim said.

“As our core businesses slowly recover from the contraction brought about by community quarantines, our Company will continue providing avenues that will further enhance and facilitate these collective efforts with various [organizations], while sustaining our assistance to our employees, business partners and the communities we serve,” he added.

On Monday, SM Prime shares at the stock exchange declined by 1.21% to close at P36.75 apiece. — Keren Concepcion G. Valmonte

When a crime, a seedy hotel, and social media mix

By Zarlene B. Chua, Senior Reporter

TELEVISION REVIEW
Crime Scene: The Vanishing at the Cecil Hotel
Netflix

AS a true-crime documentary, Crime Scene: The Vanishing at the Cecil Hotel, makes most of both the legend and infamy of the Cecil Hotel in downtown Los Angeles and the social media furor that erupted after the death of 21-year-old Elisa Lam surfaced. But if one is holding out for a grand revelation about the eight-year-old mystery of the death of Ms. Lam, there’s none here — instead, it gives one a view of how her death cemented the “evil” inside the Cecil Hotel.

The four-episode series dropped on Feb. 10 on Netflix, eight years after Canadian Elisa Lam disappeared on Feb. 1 and was found dead in the hotel’s water tank on Feb. 19.

It was a grisly mystery, and the release of the infamous elevator video in 2013 which the Los Angeles Police Department (LAPD) hoped would help them find her ignited a social media hunt by several internet sleuths who wanted to get to the bottom of the story.

The documentary — through episodes two and three — lays out all the conspiracy theories that ran rampant at the time: that this was part of a government cover-up of a new tuberculosis strain (the tuberculosis test is called LAM-ELISA), that a death metal singer killed her, and that it was a copycat murder inspired by the 2002 film Dark Water, among others.

Unlike Don’t Fuck with Cats, a 2019 true-crime documentary that detailed the roles of internet sleuths in the capture of murderer Luka Magnotta, the internet sleuths on the Elisa Lam case were of no help at all — and in fact helped in inciting people to harass the death metal singer despite the fact that he was not in California when Elisa Lam disappeared and was recording an album in Mexico.

As a true-crime fan who heard of the case when it exploded in 2013, it is easy to see how the case fascinated people: you had a girl acting erratically in an elevator, and then the next time she was seen, she’s dead and floating in a water tank with a hatch that was supposedly closed. People cried foul play because how could a person inside a water tank close the hatch after them?

Here’s a very quick rundown of the case: 21-year-old Elisa Lam was vacationing in California and stayed at the Cecil Hotel. She had promised to call her family every day to assure them she was safe. On Jan. 31, she didn’t call and her parents reported her missing. A few days after her disappearance, the police released an elevator video showing Ms. Lam acting erratically and it seemed like she felt someone was after her. Nineteen days after her reported disappearance, she was found floating inside one of the hotel’s water tanks after hotel guests complained of dirty water and low pressure. The police eventually claimed it was an accidental drowning because Ms. Lam, who had been diagnosed with bipolar disorder, was having an episode. Still, people clung to the statement that the hatch was closed when she was found and thus concluded that there must have been foul play.

The series creators (the same team behind the 2019 documentary Conversations with a Serial Killer: The Ted Bundy Tapes; the documentary is produced and directed by Joe Berlinger) did well in outlining the case and leaving out the major revelations to the latter part of the third and fourth episodes. The first two episodes focus on rehashing the case and painting one’s mental imagery of downtown Los Angeles, the Hotel Cecil and its seedy environment, Skid Row. It implies that, yes, Elisa Lam may have met with foul play.

The Cecil Hotel is a 700-room budget hotel that opened in 1924. Through the years, the hotel gained a reputation for being seedy and was the site for several suicides, homicides, etc. The general manager during Ms. Lam’s disappearance noted that she had seen about “80 deaths” during her 10-year tenure and that 911 calls had been made “thousands of times.”

Why would a 21-year-old check-in at the hotel? Well, it’s because the hotel managed to carve out two hotels in one building: the Cecil and the Stay On Main, which is a travelers’ hotel targeted towards younger people with bunk beds and more vibrant colors. It occupies several floors of the Cecil Hotel and one of those floors was where Ms. Lam was booked.

I confess that none of the information in the first half of the documentary was news to me as I had followed the case sporadically through the years — and how could I possibly miss it when so many true-crime YouTubers covered the story, promising new developments every year?

That was the hook — a very well done hook — and the line and sinker came in the second half that I won’t spoil for those who haven’t seen the documentary but know that everything will be tied neatly at the end.

The ending does not have the sort of bombshell revelation as 2018’s Evil Genius, but it feels like the story has ended and finally, people can move on. It is cathartic and I think the quote below by one of the historians interviewed makes a very good point about the “evil” of the Cecil Hotel and about accountability in social media.

“It’d be easier if we could just tell you the Cecil is haunted and it’s got some sort of uncanny force, but nobody knows that. But there is something haunted about a lot of pain and struggle and people having their lives fall apart in there — not what we normally think of as a ghost, but it does feel different in places where people have suffered,” said Kim Cooper.

Should you watch Crime Scene: The Vanishing at the Cecil Hotel? Yes, if (like me) you want to get closure for a ghost story which has bothered you for almost a decade.

The documentary is streaming on Netflix.

Federal Land seeing higher demand for townships

FEDERAL LAND, Inc. said it continues to see increased demand for its township developments such as Metro Park in Pasay City and Grand Central Park in Bonifacio Global City amid the pandemic.

“After a year of extraordinary circumstances, Filipinos are now looking for more than just a good place to sleep in when it comes to finding their home,” Federal Land Executive Vice-President Catherine C. Ko said in a statement.

“The comfort they feel inside their homes needs to extend to the areas outside their doors, into what we now call the ‘outside world’ for Filipinos to feel safe and secure in their environment. This is how communities offer value for our residents — living in our communities has allowed our residents to continue with their lives with minimal disruption, in a mixed-use community where almost everything that they need is within reach.”

Lockdown restrictions have also emphasized the importance of having a home with adequate spaces for work and recreation.

Luxury residential development Grand Central Park offers spacious unit layouts and extra rooms that can be used as an office or classroom. Metro Park’s resort-inspired condominium residences offer alternative spaces to work-from-home and landscaped gardens for relaxation.

Ms. Ko said the developer implemented safety regulations in its malls and existing properties and upgraded its sanitation facilities in accordance with government guidelines.

Megawide bags ‘multiple contracts’ worth P26B for Suntrust project

MEGAWIDE Construction Corp. on Monday said it bagged “multiple” contracts amounting to P26.3 billion from Suntrust Home Developers, Inc. for its Westside City Resorts World project.

“The initial letters of award from Suntrust — totaling P6.3 billion — included initial works such as pile cap, excavation, and lateral support direct contract, worth P2.3 billion, and Site B main contract, including basement substructure, superstructure, and architectural builders works and finishes, amounting to P4 billion,” the listed engineering and construction company said in an e-mailed statement.

The company added that it was awarded a supplemental agreement amounting to P20 billion on Dec. 18 last year.

The agreement covers the management of nominated subcontractors for mechanical, electrical, plumbing, and fire protection (MEPF); interior design; and allied services of the Main Hotel Casino, including “additional architectural, structural and civil works.”

The project will be located at the Entertainment City Manila, a gaming and entertainment complex along Manila Bay.

“The project is expected to be completed within 30 months from start date,” Megawide said.

Suntrust is the Philippine unit of Hong Kong-listed Suncity Group Holdings Ltd.

“The requirements of Suncity, in terms of engineering excellence, quality workmanship, and speed to market, perfectly match Megawide’s expertise,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said.

“Large-scale investments such as these are critical for our national economic recovery from the crisis caused by COVID-19 (coronavirus disease 2019),” he noted.

The company recently reported total revenues of P9.03 billion for the first nine months of 2020, down by 34% from the previous year’s P13.69 billion.

Its contract revenue went down by 30% to P7.41 billion. Revenue from airport operations decreased by 63% to P998.17 million, while the airport merchandising business also saw its revenue drop by 72% to P69.51 million.

The company’s nine-month revenue from terminal operations grew by 167% to P551.91 million.

Megawide shares closed 0.27% lower at P7.33 apiece on Monday. — Arjay L. Balinbin

Converge exploring new satellite technologies

LISTED internet service provider Converge ICT Solutions, Inc. on Monday said it is currently exploring latest satellite technologies to improve its services.

“The latest satellite technologies, including that of Space Exploration Technologies Corp. (SpaceX), are among those new technologies being explored by Converge to bring high-speed broadband to far-flung areas in the country,” Converge said in a statement.

The company issued the statement to clarify news reports that it was in talks with SpaceX for a partnership on broadband satellite services.

“Converge wishes to clarify that the company is always looking for new technologies to bring high-speed internet services to the broadest number of Filipinos,” it said.

“However, it is still very premature to talk about a possible partnership between Converge and SpaceX at this stage as suggested in the… news reports,” it added.

Converge is targeting to reach over 15 million or 55% of Philippine households by 2025.

The company recorded 6.1 million homes passed, as of December 2020, accounting for 25% of total households in the Philippines.

It recently reported an attributable net income of P2.19 billion for the first nine months of 2020, up 57.63% from P1.39 billion it earned in the same period in 2019.

Converge ICT shares closed 4.40% higher at P18.52 apiece on Monday. — Arjay L. Balinbin

Gov’t upsizes T-bill award as rates decline further

THE GOVERNMENT Hiked its award of Treasury bills on Monday as rates continued to drop on the back of strong demand from investors looking for higher yields. — BW FILE PHOTO

THE GOVERNMENT upsized the volume of Treasury bills (T-bills) it awarded for the seventh straight week on Monday as demand remained high despite faster inflation and as rates continued to drop.

The Bureau of the Treasury (BTr) raised P24 billion from its offer of T-bills on Monday, higher than the P20-billion program, after it accepted more non-competitive bids for the three-month and six-month papers. It also opened its tap facility to offer another P5 billion in one-year securities.

The BTr has made above-program awards of its weekly T-bill offers since the start of the year

Total bids for the T-bills hit P88.61 billion on Monday, making the offer more than four times oversubscribed. However, this was lower than the P95.35 billion in tenders seen for last week’s offering.

Broken down, the BTr awarded P7 billion in 91-day debt papers, higher than its plan to raise P5 billion, as tenders reached P17.45 billion. The three-month T-bills fetched an average rate of 0.845%, down by 0.1 basis point (bp) from the 0.846% quoted last week.

The Treasury also borrowed P7 billion from the 182-day T-bills against the P5-billion program after bids hit P30.05 billion. The average rate of the six-month papers went down by 4.8 bps to 1.046% from the previous week’s rate of 1.094%.

Lastly, for the 364-day securities, the government made a full P10-billion award as it received tenders worth P41.11 billion. The average rate of the one-year papers stood at 1.416%, 3 bps lower than the 1.446% seen last week.

National Treasurer Rosalia V. de Leon said the oversubscription seen for Monday’s offering showed the market is still flush with cash and that investors remain interested in putting their money in government debt despite the uptick in inflation.

“Liquidity continues to overflow. Market sees a spike in prices as temporary, with supply constraints and inflation dialing back to the middle of the target next year,” Ms. De Leon said.

Headline inflation quickened to 4.2% in January from the 3.5% logged in December, hitting a two-year high as food and transport prices continued to increase.

Despite this, the central bank on Thursday kept benchmark interest rates at record lows to support the Philippine economy’s recovery from the coronavirus pandemic. In its first policy setting for the year, the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board maintained the overnight reverse repurchase rate at a record low of 2%. The rates on its lending and deposit facilities were likewise kept at 2.5% and 1.5%, respectively.

However, the BSP raised its average inflation forecast for the year to 4%, the upper end of its 2-4% target for 2021, from 3.2% previously. Meanwhile, it lowered its inflation forecast for next year to 2.7% from 2.9% previously.

Meanwhile, a bond trader said the bids seen for Monday’s T-bill offering were largely driven by end-user demand as investors search for yields higher than time deposit rates.

“Mostly invested in T-bills are funds intended for savings/time deposit which is at 0.5% per annum,” the trader said via Viber.

The government is also offering three-year retail Treasury bonds (RTBs) until March 4, unless closed earlier. The bonds carry a rate of 2.375% and are being sold for a minimum investment of P5,000.  During the rate-setting auction last week, the BTr sold an initial P221.218 billion in RTBs.

The government is looking to raise P3 trillion this year from domestic and external lenders to help fund its budget deficit seen to hit 8.9% of gross domestic product. — Beatrice M. Laforga

1...6,9306,9316,932...12,689Page 6,931 of 12,689
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube