The Keepers Holdings follow-on offer raises P4.5B

November 19, 2021 | 8:43 pm

The Keepers Holdings, Inc. on Friday raised P4.5 billion from its follow-on offering that drew local small investors in an oversubscribed capital raising for the owner of three local liquor companies.

During the listing ceremony, Philippine Stock Exchange President and Chief Executive Officer Ramon S. Monzon said The Keepers Holdings attracted interest because of its “strong growth prospects.” The Keepers Holdings’ follow-on offering was oversubscribed by about 3.36 times.

Mr. Monzon cited the company’s move from a shell company to become a holding firm with three subsidiaries to form a liquor business.

On June 18, The Keepers Holdings entered into a share-swap transaction in which its shares were swapped with shares held by Cosco Capital, Inc. in liquor, wine, and specialty beverage distribution companies Montosco, Inc., Meritus Prime Distribution, Inc., and Premier Wine and Spirits, Inc.

Mr. Monzon said the “20% tranche for the trading participants was likewise oversubscribed by 2.86 times, resulting in an oversubscription of 2.2 times for the company’s total offering of P4.5 billion.”

He commended The Keepers Holdings for allocating 5% of its offer shares to the local small investors, allowing 3,542 from Metro Manila, 66 from the provinces, and 22 from other countries to participate in the offering.

The Keepers Holdings President Jose Paulino L. Santamarina said the company “has brand leadership in 10 of the 12 key spirit categories,” and currently has diversified offerings as it has representations in the wine and specialty beverage products segment.

He said with the company’s network of more than 200 strong distribution partners coupled with its strong distribution synergies with the Cosco Capital, The Keepers Holdings “has covered all key distribution channels for the imported retail.”

The Keepers Holdings set the price of its three billion common shares at P1.50 apiece, the lowest end of its already discounted price range.

Shares in Keepers Holdings at the stock exchange on Friday fell by 86.82% or P11.13 to end at P1.69 apiece. — Bianca Angelica D. Añago

Fruitas drops bid to fully own Surehealth

November 19, 2021 | 8:41 pm

Fruitas Holdings, Inc. has dropped its plan to fully acquire Surehealth Multi-Specialty and Diagnostic Clinic Corp. as it keeps its focus on the food and beverage retail business.

“Management recognized concerns that this may become a distraction from pursuing opportunities in its core food and beverage retail business,” the listed company said in a disclosure to the stock exchange on Friday.

With the decision, Fruitas said it would take advantage of the expected recovery of the food service sector and would “continue to enhance the accessibility of its products, both through physical and digital channels.”

The company will also push through with the expansion of its community store network, it said, especially with the acquisition of Balai Pandesal Corp. in May.

In a disclosure on Nov. 8, Fruitas announced that it had entered an agreement to acquire 100% of Surehealth’s shares, including assets such as medical equipment, specialized manpower, and a physical clinic in Sta. Mesa, Manila.

The company had planned to enter the healthcare industry “to further encourage a healthy lifestyle among our customers,” Fruitas President and Chief Executive Officer Lester C. Yu said in a statement on Nov. 8.

Surehealth is the health service provider of Fruitas during the coronavirus pandemic. It is a 14-year private medical and diagnostic clinic that provides services such as medical pre-employment packages, annual physical examinations, and medical laboratory tests for employees of firms in the airline support industry, construction, and logistics.

Fruitas shares rose by 0.82% or one centavo to close at P1.23 apiece on Friday. — Bianca Angelica D. Añago

PLDT Home aims to power ‘smart homes’ with 10,000 Mbps service

November 19, 2021 | 8:40 pm

PLDT Home is set to launch in December a 10,000 megabits per second (Mbps) fiber-optic service, which is seen to enable smart homes in the Philippines.

PLDT Home will pilot the new service in Metro Manila in December and then roll it out to key cities outside the capital region such as Cebu and Davao in 2022.

“The 10,000 Mbps fiber-optic service lays the groundwork for future innovation like smart homes,” PLDT Senior Advisor for Home Business Jeremiah De La Cruz said at a virtual event on Friday.

Smart homes, as defined by market and consumer data provider Statistica.com, are private households that are controlled, monitored, and regulated through networked devices.

According to Statistica, the Philippines’ household penetration rate would be 7.5% this year and 14.2%, or 3.4 million active smart homes, by 2025.

This year, the Philippines ranked 48th out of 110 countries in the Digital Quality of Life Index because of improvements in internet quality and electronic security, according to a study by information technology firm Surfshark Ltd.

In 2020, the country ranked 66th due to poor scores in internet affordability, internet quality, electronic infrastructure, electronic security, and electronic government. The Philippines’ main issue was its internet quality, which ranked 84th.

“Launching 10,000 Mbps shows our commitment to bring the country’s digital infrastructure to the future,” Mr. De La Cruz said.

“PLDT Home’s fiber will not just power smart homes, but also new metaverse applications that are currently in development around the globe,” he added.

PLDT added 324,000 new fiber subscribers as of September, bringing the company’s total fixed broadband customers to 2.77 million at the end of the third quarter.

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

Airspeed plans new hubs as e-commerce demand rises

November 19, 2021 | 8:38 pm

Integrated logistics company Airspeed announced on Friday that it would open new hubs in Cavite, Parañaque and Pasay, as online retail demand continues to rise.

The new hubs are intended as fulfillment locations where Airspeed will receive, store inventory, process orders, and pack items, among others.

“Retail has shifted massively in favor of online,” Airspeed Chairman and President Rosemarie P. Rafael said. “Behind the scenes, there is a lot of work needed to make these critical deliveries happen.”

Triggered by the coronavirus pandemic, more people are buying goods and services online. The Trade department has said online retailer registrations rose to 88,000 by the end of 2020 from around 1,700 between January and March of that year.

The Philippine e-commerce sector is seen to contribute P1.2 trillion to the economy by 2022, representing 5.5% of the gross domestic product, according to the government’s e-commerce roadmap.

Airspeed introduced new features in its systems to meet the existing demand for logistics services, such as real-time order monitoring, end-to-end inventory visibility, and transport management.

“To cater to its growing e-fulfillment business, Airspeed is opening three e-fulfillment locations in Carmona, Cavite, Asinan in Parañaque and in Pasay,” the company said.

Airspeed also added new offices this year in Bacolod, Negros Occidental; Cubao, Quezon City; and Carmona, Cavite.

Airspeed’s headquarters is in Parañaque with branch offices in Makati, Clark in Pampanga, Cebu City, Davao City, and Cagayan de Oro.

“We need to be innovative and creative and listen very closely to the pulse of the market to meet the changing needs,” Ms. Rafael said.

Airspeed is one of SM Investments Corp.’s portfolio investments. — Arjay L. Balinbin

DoubleDragon transforms into a holding firm

November 19, 2021 | 8:36 pm

DoubleDragon Properties Corp. has secured approval to change its name to DoubleDragon Corp. and to transform from a real estate developer into an investment holding company.

The company disclosed to the Philippine Stock Exchange on Friday that the Securities and Exchange Commission (SEC) issued a Certificate of Amended Articles of Incorporation that allowed the change in its name and primary purpose.

In a press release, it said the transformation is a step that entrepreneurs Tony Tan Caktiong and Edgar “Injap” J. Sia II foresee “as a necessary preparation for the long term.”

Mr. Tan Caktiong, DoubleDragon co-chairman, said: “Barely just a few years ago, our family partnered with the Sia family as we saw exciting prospects in the Philippine real estate industry. Fast forward to today, DoubleDragon has grown from zero leasable space to 1.024 million square meters of completed [gross floor area] portfolio.”

He said in hindsight, that decision was proven right as DoubleDragon has transformed from a small startup into a company with more than P129 billion in assets.

Messrs. Tan Caktiong and Sia started their partnership in 2012.

“DoubleDragon is now in an excellent position where it can capitalize on its strong balance sheet to add worthwhile investments outside of the property sector that would have massive growth potential,” Mr. Tan Caktiong said.

DoubleDragon Chairman Mr. Sia said the two of them view the move as the right time for the company to prepare “for extraordinary opportunities that will present itself along the way as we navigate out of this global pandemic towards the next economic boom cycle.”

Mr. Sia’s Injap Investments, Inc. and Mr. Tan Caktiong’s Honeystar Holdings Corp.

equally share over 70% ownership of DoubleDragon.

DoubleDragon has four principal business segments, namely: retail leasing, office leasing, industrial leasing, and hotels. — Marielle C. Lucenio

Fitch cites potential credit rating cut

November 19, 2021 | 7:25 pm

transparency-magnifying glass — PIKISUPERSTAR-FREEPIK

By Jenina P. Ibañez, Senior Reporter

Rising public debt could lead to a credit rating downgrade for the Philippines in the next few years, Fitch Ratings said.

The rating company would consider the country’s public debt-to-gross domestic product (GDP) ratio in the medium term, especially as finances in the Asia Pacific improve, it said in a note on Friday.

“Rating downgrades could occur for countries such as India, Japan and the Philippines, which are on negative outlook,” it said.

Outstanding government debt ballooned to P10.2 trillion last year from P8.2 trillion in 2019 as the state ran big deficits to battle a coronavirus pandemic.

President Rodrigo R. Duterte’s 2022 record spending plan, up by 11.5% to P5.02 trillion pesos from this year’s budget, is his last before his six-year term ends in June 2022.

The likelihood of authorities stabilizing or cutting the debt-to-GDP ratio in both India and the Philippines is waning, Fitch Ratings said.

It noted that higher public debt ratios in both economies had been caused by a higher drop in output and increased economic scarring even though they provided less fiscal support.

In July, Fitch Ratings changed its outlook for the Philippines to negative from stable as it cited increasing risks to the country’s credit profile from the pandemic.

The country’s debt-to-GDP ratio was 63.1% as of September, the highest in 16 years, government data showed.

The credit rating company said withdrawing pandemic-related policy support could be difficult especially in countries such as the Philippines, where low vaccination rates make the country vulnerable to more disruption.

It expects the course of countries’ policy normalization to influence sovereign ratings, especially for those with a negative outlook.

Central banks in the Asia-Pacific region may find it hard to withdraw extra liquidity they provided during the crisis, including the Philippines’ direct deficit financing, Fitch Ratings said.

“This tactic freed up resources for relief measures, but could weaken credit profiles if it results in increased government interference in monetary policy and fiscal dominance,” it added.

The lack of further fiscal and investment reforms under a new government next year could hasten a credit downgrade, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.

“This would signal a wrong message to potential and likely investors interested in the Philippines,” he said in a Viber message.

The next administration should deal with the impact of the pandemic to ensure a stable recovery, he added.

Slower than expected economic growth could lead to a credit downgrade because it would affect the country’s ability to pay its debt, Asian Institute of Management economist John Paolo R. Rivera said in a Viber message.

Pandemic management would also show if it could reopen the economy and improve employment and output, which would guarantee debt payment, he added.

BSP fully awards debt at auction

November 19, 2021 | 7:21 pm

By Jenina P. Ibañez, Senior Reporter

The Philippine central bank fully awarded short-term securities at an auction on Friday, as the average rate declined amid easing global oil prices.

The Bangko Sentral ng Pilipinas (BSP) raised P100 billion as planned from its offer of 28-day bills that attracted P130.51 billion in tenders. Demand was higher than P110.25 billion last week.

Accepted rates for the one-month debt ranged from 1.76% to 1.805%, narrower than 1.7475% to 2% last week. The average rate of the one-month securities was 1.7798 %, lower than 1.7934% last week.

The central bank uses short-term securities and its term deposit facility to mop up excess liquidity in the financial system and guide market rates.

The auction yield slipped after global oil prices fell as the United States and other countries consider releasing their petroleum reserves, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

Yields fell after the BSP kept policy rates and cut its inflation forecast for the year, he said. “The BSP 28-day securities auction yield also slightly eased due to higher total bids.”

The Unites States has asked China, India, and Japan to release oil reserves in a coordinated move to lower global energy prices, Reuters reported. Oil prices went up slightly on Thursday after falling to six-week lows.

The central bank on Thursday kept the key rate steady at 2%, as expected by all 20 economists in a BusinessWorld poll last week.

BSP lowered its average inflation forecast for 2021 to 4.3% from 4.4%. Inflation in the first 10 months of the year was 4.5%.

Philippines eyes first green bonds

November 19, 2021 | 7:17 pm

The Philippines is preparing to offer its first sovereign green bonds to fund climate mitigation projects, the Department of Finance (DoF) said on Friday.

In a statement, Finance Secretary Carlos G. Dominguez III said a sustainable finance roadmap approved last month seeks to harness public and private investments to support the country’s transition to a clean, sustainable and climate-resilient economy.

“We are also in the process of completing our sustainable finance framework for the issuance of our first-ever sovereign green bonds,” he said.

The Finance chief said the Securities and Exchange Commission had prepared the capital markets for green investments after releasing guidelines on green, social and sustainable bonds that follow regional standards.

The sustainable finance roadmap prepared by the DoF and Philippine central bank seeks to bridge policy and regulatory gaps in promoting sustainable investments.

The Philippine roadmap is aligned with Southeast Asian standards for green bonds along with other international green finance standards, the agency said.

Fifteen Philippine banks, electric and water utilities, energy and property companies have issued 29% or $4.8 billion of ASEAN-labeled green bonds as of end-September, the Bangko Sentral ng Pilipinas said.

Seven local banks have issued more than $1.15 billion and P85.4 billion of green bonds since 2017.

Members of the Executives’ Meeting of East Asia-Pacific Central Banks plan to adopt green investment rules through the Asian Bond fund by March next year.

BSP Governor Benjamin E. Diokno said the central bank’s investment in green bonds could reach $1 billion in the next two years. — Jenina P. Ibañez

BSP organizes precursor to committee on data-sharing rules

November 19, 2021 | 7:12 pm

The Bangko Sentral ng Pilipinas (BSP) has created an interim transition group ahead of a pending industry-led open finance oversight committee (OFOC) that will come up with standards for data sharing among financial institutions.

The BSP in a circular Friday said the interim group will lead the creation of the formal committee, and it will facilitate the development of policies and standards.

Such standards include participation arrangements, technical standards, and other common guidelines.

“The (transition group’s) role in policy and standard development shall extend to its pilot implementations under the Open Finance regulatory sandbox,” according to circular letter 2021-090.

The BSP will appoint transition group members that will represent industry groups including universal and commercial banks, thrift banks, digital banks, e-money issuers, operators of payment systems, and the financial technology industry. Membership may be changed as approved by the BSP.

The transition group will carry out its responsibilities until the formal committee has been established, and may be in place for up to two years.

The BSP has said that it hopes to finalize OFOC membership within the year.

The central bank in June released Circular 1122 or the open finance framework, which allows for customer consent-driven data sharing among institutions that follow the same data security standards. – Jenina P. Ibañez

Philippines OK’s vaccine mix-and-match trials

November 19, 2021 | 7:09 pm

By Russell Louis C. Ku

The Philippine Food and Drug Administration (FDA) has approved clinical trials for combining coronavirus vaccine brands, an official from the Department of Science and Technology (DoST) said on Friday.

The regulator approved the study on Nov. 16 and has started screening applicants, DoST Undersecretary Rowena Cristina L. Guevara told a televised news briefing.

The mix-and-match trials would need 3,000 participants including Filipinos who got vaccinated with Coronavac from China as their first dose.

The dry run started last month with results of the study to be made available by the first quarter of next year.

More than 73 million coronavirus vaccines had been given out as of Nov. 18, with 32.9 million Filipinos having been fully vaccinated against the virus and 6,457 booster shots injected, according to data from an inter-agency task force.

Meanwhile, a House lawmaker has called on the task force to do away with RT-PCR tests for interzonal land, air and sea travel because it burdens fully vaccinated travelers.

Party-list Rep. Jose J. Teves, Jr. filed a House resolution asking the government to only require a negative antigen test result for traveling Filipinos who have been fully vaccinated.

“The RT-PCR requirement imposed by several local government units is a burden to fully vaccinated travelers considering its expensive price and long processing time,” according to a copy of the resolution.

The task force said that local governments would decide on testing requirements for travelers visiting their area.

Cities such as Davao and Zamboanga lifted requirements for negative RT-PCR results for domestic tourists starting Nov. 16.

Meanwhile, the Philippines will soon admit fully vaccinated people from low-risk countries to boost its country’s tourism sector.

In a statement, the Tourism department said the task force had approved in principle the entry of fully vaccinated tourists from green list countries.

Fully vaccinated foreigners from these countries only need a negative RT-PCR test within 72 hours before departure, according to a copy of a resolution approved on Thursday.

No facility-based quarantine and additional testing will be required, but tourists should self-monitor for any symptoms until the 14th day after their arrival in the country.

Tourism Secretary Bernadette Fatima T. Romulo-Puyat told reporters the guidelines would come out before the end of the month.

“This move will likewise aid in bolstering consumer confidence, which is a large contributor to our gross domestic product growth,” she said.

Meanwhile, the presidential palace said employers and private businesses could still require customers to wear face shields inside their shops.

Acting presidential spokesman Karlo Alexei B. Nograles said the relaxation of the face shield requirement “is without prejudice to employers still requiring their use for their employees or workers and customers in their respective premises.”

China accuses Philippines of trespassing

November 19, 2021 | 7:08 pm

Chinese coast guard attacked two Philippine supply ships on Nov. 16 using a water cannon for trespassing, according to its Foreign Ministry spokesman.

The Philippine boats trespassed into waters near Ren’ai Jiao of China’s Nansha Qundao, according to a transcript of Chinese Foreign Ministry spokesman Zhao Lijian’s briefing posted on the agency’s website on Thursday.

Ren’ai Jiao is the Chinese name for Ayungin or the Second Thomas Shoal.

The spokesman said Chinese coast guards had followed their mandate. “Chinese coast guard vessels performed official duties in accordance with law and upheld China’s territorial sovereignty and maritime order.”

The Department of Foreign Affairs (DFA) earlier told China to back off because it has “no law enforcement rights in and around these areas.”

It also warned that the incident could jeopardize relations between the two countries, while citing its Mutual Defense Treaty with the United States.

The Chinese spokesman said the Philippines and China were in talks about the incident. DFA did not immediately respond to a WhatsApp message seeking comment. — Alyssa Nicole O. Tan

Duterte claim vs narco-politician based on intel

November 19, 2021 | 7:04 pm

By Kyle Aristophere T. Atienza, Reporter

Philippine President Rodrigo R. Duterte’s claim that a wealthy presidential aspirant was a cocaine user was based on intelligence reports, his spokesman said on Friday

“The President, of course, has access to many sources including intel reports,” acting presidential spokesman Karlo Alexei B. Nograles told a televised news briefing.

He said law enforcers were probably investigating the presidential candidate now whom Mr. Duterte described as a weak leader. The President also said his only claim to fame is his father’s name.

Mr. Nograles said there are no holy cows in the administration’s war on drugs.

“We do not look at social rank or status,” he said in Filipino. “As long as they’re involved in drugs, we will charge them, arrest them, prosecute them.” Mr. Duterte might name the presidential candidate soon.

Critics have slammed the tough-talking leader for not immediately acting on the report. They said he could have ordered the arrest of the official.

“It is a bit of common knowledge who he is referring to and yet, in the last five years in office, no action was taken until the fellow decided to run for president,” Edwin Lacierda, a former spokesman of the late President Benigno S.C. Aquino III tweeted. “The question is why didn’t you do anything about it?”

The treatment shows that there is a “double-standard with regard to the war on drugs,” said former lawmaker Lorenzo R. Tañada III. “The poor become victims and sometimes killed while the rich get only killed by his words,” he tweeted.

Senator Leila M. De Lima is still on trial for allegedly allowing the illegal drug trade to flourish in the country’s jails when she was still Justice secretary.

Witnesses against Ms. de Lima, who was arrested while heading an investigation by a Senate panel into alleged atrocities committed during Mr. Duterte’s drug war, were drug convicts serving time at the national penitentiary in Muntinlupa City.

“While unnamed, it’s pretty obvious who he’s referring to,” Ms. de Lima tweeted. “If that’s true, you should have jailed him, not me,” she said in Filipino, addressing Mr. Duterte.

“Isn’t cocaine included in your drug war?” she asked.

The International Criminal Court (ICC) has ordered an investigation of Mr. Duterte’s crackdown on illegal drugs that has killed thousands, saying crimes against humanity might have been committed.

Critics have said that Mr. Duterte’s run for a Senate seat is yet another attempt to evade accountability from the United Nations-backed tribunal.

Meanwhile, Mr. Duterte said his political party could not forge an alliance with Lakas-CMD because it is backing the presidential run of the only son and namesake of the late Philippine dictator Ferdinand E. Marcos.

“I don’t think he’s good, he is a weak leader,” he said in mixed English and Filipino at a taped party meeting aired on Friday, referring to ex-Senator Ferdinand “Bongbong” R. Marcos, Jr. “That’s true and I’m not trying to slander anyone. He’s really weak because he’s a spoiled child and an only son.”

Victor D. Rodriguez, Mr. Marcos’s lawyer and chief of staff, did not immediately reply to a text message seeking comment.

The former lawmaker, who lost in the 2016 vice-presidential race, is running in tandem with Davao City Mayor Sara Duterte-Carpio, the president’s daughter who is running for vice-president.