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Pandemic prompts “paced” construction of PetroWind project

PetroEnergy Resources Corp. has “paced” the construction of its latest wind project in Aklan because of the global coronavirus pandemic, the Yuchengco-led listed company said, though it is committed to meet its target commercial run.

PetroWind Energy Inc., a joint venture of the company’s renewables arm PetroGreen Energy Corp., Thai firm BCPG Wind Cooperatief U.A., and EEI Power Corp., is developing the second 14-megawatt unit of its existing Nabas wind power facility.

“Actual development of the project had to be paced due to the Covid-19 (coronavirus disease 2019) pandemic, but when resumed, it is expected to generate additional employment during construction, add to the LGUs (local government units) tax and royalty base, and stimulate business from local suppliers,” said Paul Elmer C. Morala, assistant vice president for power operations of PetroGreen.

The Department of Energy on May 13 issued PetroWind with a certificate of commerciality for the project. PetroGreen wants it to go online over the next two years, in time for the completion of improvements in the Cebu-Negros-Panay interconnection project of the National Grid Corporation of the Philippines.

PetroGreen also holds a portfolio of geothermal and solar power facilities. In its stockholders’ meeting in August, PetroEnergy said its green projects were “not seriously affected” by the pandemic.

Besides renewables, PetroEnergy is also engaged in petroleum development.

In the first semester, the company saw around 19.6% decline in attributable profits to P161.30 million due to the slump in its oil revenues. Its total revenues stood at P1.08 billion, or 3.6% lower from a year ago.

Its electricity sales between January and June were slightly lower by 2.6% to P912.08 million, mainly brought by the repricing of its geothermal plant’s electricity price. Depressed crude oil prices dragged down its petroleum revenues by 6.1% to P171.12 million in the period.

Meanwhile, PetroWind was named among the Top Community Care Companies in the 2020 Asia Corporate Excellence and Sustainability Awards (ACES) in Kuala Lumpur.

PetroEnergy said ACES described PetroWind as among Asian companies that “have enriched the communities through various outreach initiatives and which epitomize the mission and values of an organization that…demonstrate exemplary active citizenship in promoting the wellbeing of society at large.”

Shares in PetroEnergy were unchanged at P3.11 each on Wednesday. — Adam J. Ang

Bulacan airport’s franchise bill set for Senate plenary discussion

THE bill granting a 50-year franchise to the San Miguel Aerocity, Inc. has been endorsed for plenary deliberation in the Senate on Tuesday.

The Senate Committee on Public Service adopted House Bill No. 7507, allowing the San Miguel Aerocity to construct, develop, establish, operate, and maintain the Bulacan airport and “airport city.”

The new airport is expected to decongest the Ninoy Aquino International Airport (NAIA), Senator Grace S. Poe-Llamanzares said in her sponsorship speech, Tuesday evening.

“The only option for NAIA is to find another site, the route two of the world’s mammoth, modern and newest airports — Istanbul and Beijing — has taken. Or reclaim the sea beside it, as what Hong Kong is doing,”

The proposed P1.5-trillion Bulacan airport and airport city are expected to accommodate 100 million passengers annually. San Miguel Aerocity will also build an expressway that will link it to North Luzon Expressway and a rail link through Metro Rail Transit-7.

Ms. Llamanzares also raised its importance in terms of helping the tourism industry and other related sectors to recover from the coronavirus pandemic that locked down the country.

“The employment and tourism-generating capacity of this airport are far-reaching at a time when we are badly hit by the pandemic,” she said.

The 50-year franchise is inclusive of a 10-year maximum period for the design, planning and construction of the airport and airport city. It will also exempt the grantee from direct and indirect taxes during the 10-year construction period.

The franchise may also be revoked should San Miguel Aerocity fail to start construction within one year or start operation within one year after securing a permit from the Civil Aviation Authority of the Philippines.

Other conditions for revocation are the failure to start operating within 12 years from the enactment and the failure to continuously operate for two years.

The grantee will also be entitled to a revenue share worth 12% of the internal rate of return (IRR) annually, upon determination by a competent authority that San Miguel Aerocity has recovered the investment cost. Amount in excess of the 12% IRR will be remitted to the government.

Further, the grantee is mandated to report annually to Congress and may be penalized with a fine of P1 million per day for every day it fails to submit a report.

Also on Tuesday evening, Ms. Llamanzanres recommended the 25-year franchises for the Cruz Telephone Co., International Communications Corp., Tandag Electric and Telephone Co., Inc.  FBS Radio Network, Inc. Century Communications Marketing Center, Inc., Caceres Broadcasting Corp., Negros Broadcasting and Publishing Corp., Philippine Collective Media Corp., Davao Light and Power Co., Inc., and the Metro Manila Turf Club. — Charmaine A. Tadalan

San Miguel secures regulatory nod for P20-B preferred shares offering

SAN MIGUEL CORP. has obtained regulatory approval to issue P20-billion preferred shares under a shelf registration program.

In a statement on Wednesday, the Securities and Exchange Commission said it accepted the registration statement of San Miguel to offer up to 533.33 million preferred shares in a three-year period.

From the allocation, San Miguel will initially offer 133.33 million Series 2 preferred shares, which will have an oversubscription option of 133.33 million shares, priced at a maximum of P75 each.

The offer is expected to generate P19.89 billion in net proceeds, which the company will use to support infrastructure projects such as the P734-billion Bulacan airport and the P62.7-billion Metro Rail Transit Line 7. It will also be used for general corporate purposes.

San Miguel filed its application for the shelf registration of up to P40-billion preferred shares in August, where P20-billion shares make up the first tranche.

It tapped BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. as joint issue managers, lead underwriters, and bookrunners for the offering.

In the first semester of 2020, the company booked an attributable net loss of P7.59 billion, reversing its attributable net income of P13.23 billion the same period last year, due to the impact of the coronavirus pandemic to its fuel and beer businesses.

San Miguel shares closed at P98.90 apiece on Wednesday, up 30 centavos or 0.30% from the last session. — Denise A. Valdez

Yields on term deposits inch up ahead of inflation data, BSP meet

YIELDS ON term deposits auctioned off by the Bangko Sentral ng Pilipinas (BSP) mostly rose on Wednesday, with the market expecting a slightly faster increase in commodity prices.

Tenders for the BSP’s term deposit facility (TDF) amounted to P645.18 billion on Wednesday, higher than the P390 billion on the auction block. It also went beyond last week’s P575.31 billion worth of bids for a P390-billion offering.

Broken down, the seven-day papers attracted bids worth P251.53 billion, above the P180-billion offering but less than the P262.56 billion in tenders logged on Sept. 23.

Accepted rates for the tenor ranged from 1.82% to 1.86%, a slimmer margin compared with the 1.8% to 1.87% recorded in the previous auction. With this, the average rate for the paper stood at 1.8377%, increasing by 0.31 basis point (bp) from the 1.8346% seen a week ago.

Meanwhile, the 14-day papers were met with bids totaling P297.14 billion, well beyond the P200 billion on offer as well as the P253.87 billion in tenders last week versus the P190 billion on the auction block.

Banks asked for yields within the 1.82% to 1.87% range, a thinner band than the 1.8015% to 1.87% logged a week ago. This brought the average rate of the 14-day papers to 1.8485%, decreasing by 0.35 bp from the 1.852% recorded last week.

On the other hand, demand for the one-month deposits totaled P96.51 billion, surpassing the P50 billion on the auction block and the P58.88 billion in tenders seen for the P30-billion offer last week.

Yields on the 28-day term deposits ranged from 1.82% to 1.85%, narrower than the 1.818% to 1.8522% margin seen at last week’s auction. This caused the tenor’s average rate to settle at 1.8426%, rising by 0.1 bp from the 1.8416% seen last week.

The TDF is one of the central bank’s tools to gather excess liquidity in the financial system and to better guide market interest rates.

“The TDF auction results show continued ample liquidity in the financial system,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement.

BSP Governor Benjamin E. Diokno has said the liquidity infusion from the central bank’s monetary policy measures reached P1.5 trillion, equivalent to about 7.6% of the gross domestic product.

The uptick in the TDF yields came ahead of the release of the September inflation data, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.

“The markets are expecting slightly faster inflation after a full month of GCQ (general community quarantine) in Metro Manila, leading to some pickup in demand as well as prices of goods and services,” Mr. Ricafort said in a text message.

The Philippine Statistics Authority (PSA) is set to report the September inflation data on Oct. 6.

Inflation stood at 2.4% in August, easing from the 2.7% pace in July faster than the 1.7% logged in August 2019. The PSA said inflation eased mainly on the back of a slower increase in food prices.

This brought the year-to-date inflation average to 2.5%, within the BSP’s 2-4% target and slower than the 2.6% forecast for the year. — Luz Wendy T. Noble

Over a cup of hope

PEOPLE say that coffee makes the world move, waking people up when they need to get out of bed. But sometimes one needs more than a shot of caffeine, one needs a bit of hope. And the opening of the new Nespresso boutique at the Podium may provide just that in a world that has effectively frozen.

Nespresso is the single-serve coffee subsidiary of Nestle. While the machines have been around since 1986, and have been found in hotels and restaurants since the early 2000s, they hit Filipino homes only in 2017, through Novateur Coffee Concepts Inc. It has since opened a boutique in Rockwell (operational again after the lockdown loosened), and opened a second one in the Ortigas Center’s Podium just last week.

The new boutique, at 58 sqm., features the work of Universal Design Studio, an award-winning architecture and interior design firm founded by Edward Barber and Jay Osgerby. The store highlights tabletops made from used coffee grounds and 100% sourced wood from reforestation programs. In partnership with Negrense Volunteers for Change (NVC), the store also showcases some wall tiles that demonstrate how Nespresso pods can be upcycled and transformed into high-value art pieces.

Patrick Pesengco, Managing Director of Novateur Coffee Concepts, pointed out how the  aluminum pods of Nespresso prove to be a symbol of the brand’s commitment to sustainability — even before it became an urgent trend. Single-serve coffee capsules, especially those made of plastic, are blamed for increasing plastic pollution. “From day one, [Nespresso’s pods were] made of aluminum, which costs much more,” Mr. Pesengco said during a webinar on Sept. 22, which showed the shop’s interiors. Aluminum can be melted and smelted again and again. As part of its program, Nespresso collects the used pods (either through in-store containers or through home or office pickups), and they have found a smelting partner who transforms the pods into ingots. According to Mr. Pesengco, the old pods have been transformed into automotive parts, among other things. Meanwhile, the coffee grounds can be, and some of them have been, distributed as fertilizer to local organic farms.

Despite the pandemic and doubts for the survival of many retailers, Mr. Pesengco sailed on to open a second coffee shop. “We were really having second thoughts during COVID [whether or not to open]. But we realized that we want to be hopeful. We Filipinos, we’re very hopeful and optimistic. We believe that the future would be better.  We opened this boutique because we believe that at the very least, it’s a small role that we want to play. Aside from hiring our coffee specialists, we do have a lot of allied partners. The logistics, the delivery. It’s just a symbol of hope within our company.”

Speaking about the space at The Podium, he noted that a lot of their neighboring stores have not opened yet. “Hopefully, other tenants, other retailers, would see that [with] Nespresso’s opening. ‘Maybe we have a chance to open as well’,” said Mr. Pesengco. He added, “Of course, we computed our finances, we’re not martyrs. We might not be able to get the returns that we wanted, but [it’s] enough to justify opening.”

In these times, a mundane cup of coffee (even if it’s an espresso that has somehow come to you in a pod) has become more special, a point Mr. Pesengco acknowledges. “For us, at Nespresso, it’s more than just coffee. It’s the start to your day, to make them realize that this day will come, and do well, whatever they face within the day.”

The Nespresso Boutique at The Podium is located at Level 2. For opening hours, visit www.nespresso.ph . — Joseph L. Garcia

DoubleDragon eyes 150% equity growth by 2030

By Denise A. Valdez, Senior Reporter

PROPERTY developer DoubleDragon Properties Corp. is targeting to expand its total equity by over 150% to P120 billion in the next decade through income growth and real estate investment trust (REIT) offerings.

In a virtual meeting with stockholders on Wednesday, DoubleDragon Chairman and CEO Edgar J. Sia II said the company is putting prime importance on total equity value as its focus is leasing and generating recurring income.

“[T]he overall strategic goal of DoubleDragon is to be able to grow its total equity from P47.86 billion today to increase to P120 billion by 2030,” Mr. Sia said.

“This P120 billion total equity goal will be enabled mainly by accumulation of net income, and from the multiple tranches of REIT listings of its leasable portfolio,” he added.

It is common for a listed real estate company to have a market capitalization valued higher than its total equity if its focus is recurring revenues from leasing, Mr. Sia said.

DoubleDragon’s market capitalization at present is P33.19 billion, against its total equity of P47.86 billion.

“Since DoubleDragon is focused on leasing and generating recurring income, it primarily holds perpetual ownership of prime land and buildings across the country… The total equity value of the company is very important, as the net value of DoubleDragon will be generally based on its total equity value,” Mr. Sia said.

To support this goal, the company has planned to do a series of REIT listings starting this year until 2025, covering about 200,000 square meters (sq. m.) of leasing assets every year at an estimated cap rate of 6%.

The first tranche involves 248,349 sq. m. of leasable space with an estimated consolidated value of P50.89 billion. It is expected to generate P16.97 billion, which DoubleDragon will use to build 450,000 sq. m. of new leasing space.

During Wednesday’s meeting, DoubleDragon Chief Investment Officer Marriana H. Yulo said the company is “in advanced preparations” for the filing of its first REIT listing.

DoubleDragon booked an attributable net income of P3.3 billion in the first half of 2020, growing more than double from last year’s P1.52 billion. Its revenues rose 45% to P8.11 billion, where recurring revenues account for 23%.

The company’s assets are composed of provincial retail leasing, office leasing, industrial leasing and hotels. Its target is to complete a leasable portfolio of 1.2 million sq. m. by 2022.

Shares in DoubleDragon at the stock exchange shed two centavos or 0.14% to close at P14 each on Wednesday.

Philippine Central Bank Disqualifies Bankers Linked to Wirecard

The Philippine central bank said it will ban from the industry former bank employees who allegedly falsified documents for German payments company Wirecard AG.

Bangko Sentral ng Pilipinas is adding the former bankers to a list of persons disqualified from becoming directors or officers at any supervised financial institution, it said in an email to Bloomberg on Wednesday.

Wirecard filed for bankruptcy in June after acknowledging that 1.9 billion euros ($2.2 billion) it had listed as assets didn’t exist, triggering an investigation that spans from Europe to Asia. BDO Unibank Inc. and Bank of the Philippine Islands have said rogue employees falsified documents purporting to show Wirecard had deposit accounts at two of the country’s largest lenders.

Meanwhile, the Philippines’ dirty money watchdog on Wednesday said it’s been coordinating with German and Singaporean authorities in investigating Wirecard and persons of interest. It reminded banks to strengthen their know-your-customer protocols.

The Anti-Money Laundering Council on Sept. 11 said it has identified 57 “persons of interest,” including foreigners and local bank officers and government officials, whose links to Wirecard are being scrutinized.

Give burgers a perfect sear with Ina Garten’s unconventional method

By Kate Krader

WHO would argue against Ina Garten as the most trusted name in the food world these days? She’s the oracle of East Hampton, NY — the culinary world’s Warren Buffett.

When she highlights a recipe, it becomes a sensation: A video of her making a supersized cosmo during lockdown went viral and brought the maligned cocktail attention it hasn’t enjoyed since Sex & the City.

The cosmo recipe is not featured in Ms. Garten’s 12th cookbook, the forthcoming Modern Comfort Food: A Barefoot Contessa Cookbook (Penguin Random House; $35). But Ms. Garten, who has an estimated net worth of $50 million, thanks to her popular TV show Barefoot Contessa and the 12 million-plus books she has in print, does offer a selection of alcoholic beverages. It’s as if she anticipated how much people would need a drink in these increasingly anxious times.

“Comfort is so key right now,” says Ms. Garten in a phone interview about the timeliness of her book’s title. She started planning it in 2018, well before events such as the pandemic were on the horizon. “I knew it was going to be a stressful election, no matter which side of the aisle you’re on.” She adds: “I knew I wanted to provide foods that make people feel better — but modern, with fresher ingredients. Not a plain old Mac and cheese.”

Ms. Garten’s culinary superpower is to take a familiar recipe and tweak it so that it seems refreshed but is still delicious. Among the 85 dishes featured in her book are Brussels sprouts pizza carbonara, beef stew made with short ribs, and chicken pot pie soup. Her Mac and cheese is enhanced with truffle butter and cream sherry.

In Modern Comfort Food, she also turns her attention to hamburgers. “Could there possibly be a new way to make hamburgers that I didn’t know about?” asks Ms. Garten in the headnote. “As it turns out, there is!”

The secret to her smashed burgers, which are topped with a mountain of caramelized onions and Gruyère cheese, is simple: She freezes the meat for exactly 15 minutes before putting the burgers in a searing-hot skillet. Ms. Garten’s recipes are so impeccable that when she says 15 minutes, set your timer.

The result is an interior that stays juicy because of the temporary chill, while the crust on the burger becomes further caramelized. Ms. Garten also adds a pinch of dry mustard powder to the ground beef along with salt and pepper seasoning, which adds an underlying sharpness; it’s excellent with the melted Gruyère.

“When I’m stressed, cooking for people I love makes me feel better. It helps me to make my friends feel taken care of — and certainly, my husband Jeffrey,” says Ms. Garten. “And it helps to make something familiar, like smash burgers that taste better than you expect.”

In the summer, Ms. Garten says, you can pair the burger with her cosmo. “The key to the cosmo is fresh lime juice. It wakes up all the other flavors,” she notes.

In cooler, fall weather, Ms. Garten recommends a whiskey sour. (Her recipe for that is in a previous cookbook, Barefoot Contessa at Home.) Her newest book does have one for hot, spiced apple cider enhanced with a shot or two of bourbon. She recommends it as a drink to serve before sitting down to the burger, though for people who need a double dose of comfort right now, it’s a fine pairing.

The following recipe is from Modern Comfort Food: A Barefoot Contessa Cookbook, by Ina Garten.

SMASHED HAMBURGERS WITH CARAMELIZED ONIONS

Makes 4 hamburgers

Canola or grapeseed oil

2 medium red onions, sliced ¼ inch thick (4 cups)

1 tsp. sugar

1 tbsp. good red wine vinegar

1½ tsp. dry mustard powder, such as Colman’s

Kosher salt and freshly ground black pepper

1¼ pounds ground beef with 20% fat

1¼ cups grated Gruyère cheese (4 oz.)

4 sandwich potato rolls, such as Martin’s

Ketchup, for serving

Heat two tablespoons oil in a large sauté pan over medium heat. Add the onions, and cook for eight to 10 minutes, stirring occasionally, until the onions are tender and starting to brown. Add the sugar, reduce the heat to low, and cook for 10 to 15 minutes, stirring occasionally, until browned and caramelized. Add the vinegar and cook for 30 seconds to deglaze the pan.

Meanwhile, combine the dry mustard, 1½ teaspoons salt, and ½ teaspoon pepper. Place the ground beef in a medium bowl and sprinkle on the mustard mixture. With your fingers, lightly work the mustard into the beef and shape into four one-inch-thick patties. Place them on a plate and freeze for exactly 15 minutes.

Heat a large cast-iron skillet over medium-high heat and add 1½ tablespoons oil. From the freezer, place the burgers directly in the hot skillet. With a large, metal spatula, firmly press each burger into the pan. Cook the burgers for 2½ to 3 minutes without moving them, so the bottoms get browned and crusty.

Flip the burgers, then spoon on the onions and sprinkle the Gruyère on top. Place a lid on the skillet and cook the burgers for 1½ to 2 minutes, until the cheese is melted and the burgers are medium-rare inside. Place one burger on each roll and serve hot, with ketchup on the side. — Bloomberg

Southeast Asia to reap dividends from expansion of digital space: ADB

SOUTHEAST ASIA is among the regions seen to gain the most in the expected surge in the digital space, the Asian Development Bank (ADB) said, but this would require huge investments and good management of risks.

James P. Villafuerte, a senior economist at the ADB Economic Research and Regional Cooperation Department, said in a webinar on Tuesday that their estimates showed a 20% growth in the digital sector from the 2020 baseline, which could boost Southeast Asia’s gross domestic product (GDP) by $378.2 billion in 2025 and by $853.2 billion in 2030. These are equivalent to 11.1% and 25.1% of the current regional output, respectively.

“The Pacific Central Asia and Southeast Asia are actually the sub-regions experiencing a large impact on GDP. Mainly, this reflects the fact that digital connectivity is actually a very effective means of managing some of these geographical challenges. They also reflect the increasing role of digital productivity in pushing services exports, as well as the large impact of the introduction of a greater digital sector on productivity for economies with very low income,” Mr. Villafuerte said.

His presentation showed tech’s GDP impact for Central Asia is at $133.7 billion in 2025 to $241.3 billion in 2030, or 9.4% and 19.5% of its GDP, respectively.

Mr. Villafuerte said the study measures the economic impact of the expected surge in the digital space if the sector will grow faster after the pandemic as demand grows to minimize physical contact.

The estimates were based on two scenarios: in the medium-term, if digital platforms will grow 20% higher than expected between 2020 and 2025; and over the long term, if the sector will post a growth of 25% higher than expected starting 2025 to 2030.

In Asia and the Pacific, he said the output will increase by $2.7 trillion in 2025 and by $5.6 trillion in 2030 (9.4% and 19.5% of GDP, respectively).

“However, there’s a huge investment requirement to realize this digital transformation dividend,” Mr. Villafuerte said.

“It will not come automatically. Many countries in the region probably (need to) increase that not necessarily double but increase their investment in telecommunications and ICT sector quite significantly,” he added.

Southeast Asian countries will have to invest a combined $89.2 billion until 2025 or $169.8 billion by 2030 to realize the projected gains. Meanwhile, the broader Asia and the Pacific region might need to invest $472 billion in the next five years and $856.5 billion in a decade.

The study also looked at the sector’s role in boosting employment, with jobs in Southeast Asia seen to increase by 13.6 million in 2025 and 26.3 million in 2030.

The digital expansion could also push global trade, with that of the region seen rising by $263.4 billion in trade value in the next five years and by $581 billion by 2030.

“In Southeast Asian economies, I can see the opportunities because the market is there, the population is there so automatically to invest in some of the Southeast Asian economies but somehow we need basic infrastructure and here where the role of the government [comes in],” said Muhamad Chatib Basri, chairman of PT Bank Mandiri Tbk and PT XL-Axiata Tbk, who was one of the panelists in the webinar.

Mr. Villafuerte said the projected expansion of the digital sector also entails risks and challenges that will have to be mitigated, such as the high concentration in digital industries that may result in a single big winner, as well as concerns on data security.

He added online jobs are only temporary and are barely covered by social security protection measures, cybercrime and identity theft instances could surge while inequality can widen because of the widespread digital divide. Countries will also have to be prepared for digital penetration.

“Another concern, especially for the government, is that despite the huge profit generated by these technological companies, there is a practice of base erosion and profit shifting, which is affecting the fiscal sustainability of many governments, considering that they are actually spending a lot of money in terms of macroeconomic fiscal stimulus,” he added.

“While we presented a huge economic dividend from digital transformation, these are actually not automatic, there’s so many institutional policies and infrastructure improvements that need to happen so that these aggregated levels of impact can be realized. What we wanted to show in this analysis is that if we are able to make this improve governance and infrastructure and invest in our skills, there’s a huge dividend that can be realized and shared in the members of society,” Mr. Villafuerte said.

The study is part of ADB’s upcoming report “Making Digital Platforms Work for Asia and the Pacific” that will be published in February 2021. — B.M. Laforga

Avon buyers now prefer personal care products over make-up 

By Jenina P. Ibañez, Reporter

AVON PHILIPPINES has seen a shift in the demand for its offerings to personal care products from make-up and fragrances, officials of the direct-selling company said, pointing to the pandemic lockdown as the reason for the switch.

Avon Director for Channel Management Christine Eugenio said antibacterial products, rubbing alcohol, and body wash as well as intimate apparel and kitchen goods continued to see demand during the lockdown.

“Hopefully, people still pick up eye make-up,” she said in a press roundtable on Wednesday, noting that lipstick has been “taking a backseat” as more people wear face masks.

The company has continued selling during the pandemic by offering online product ordering options to its sales representatives while stores are shut.

Avon General Manager Razvan Diratian said the company is adjusting to a decrease in make-up demand but noted that the brand remained the direct-selling market leader in the country.

“We are keeping our market share, so I think we are following the trends in the market. In some of the categories we are actually driving better performance than expected,” he said, referring to home essentials demand.

Avon Head of E-commerce and Digital Kevin Dayleg added that vitamin products have been bestsellers.

“Actually, the direct selling business model is unaffected by lower foot traffic in the malls. It allows us to minimize lockdown impact,” he said.

According to Ms. Eugenio, the company has been training its sales representatives or “Avon ladies” for digital sales. Avon also added rubbing alcohol and hand gel products to its portfolio.

Mr. Diratian said that there is no plan to increase local manufacturing capacity “because it is not needed.”

“Expansion at this moment? Not really, because we didn’t reach the full capacity,” he said, adding that manufacturing is not working at full capacity at this time.

Google Maps now shows info on COVID cases

GOOGLE MAPS now has a feature that shows information about coronavirus cases in an area.

Tech giant Google LLC said in an emailed statement on Monday that the new tool is aimed at helping users ”make more informed decisions about where to go and what to do” amid the coronavirus pandemic crisis.

Google said the new feature shows a seven-day average of new coronavirus cases per 100,000 people for the area of the map.

“It includes a label that indicates whether the cases are trending up or down. Color coding also helps easily distinguish the density of new cases in an area. Trending case data is visible at the country level for all 220 countries and territories that Google Maps supports including the Philippines, along with province and city-level data where available,” the tech company said.

The Google Maps features data from “multiple authoritative sources, including Johns Hopkins and the New York Times,” Google said.

“These sources get data from public health organizations like the World Health Organization, government health departments, along with local health agencies and hospitals,” it added.

The coronavirus has sickened 33.3 million and killed more than a million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization. — A.L. Balinbin

FCDU loans decline on reduced need for capital

FOREIGN CURRENCY loans disbursed by local banks fell in the second quarter as capital needs dropped due to slower economic activity due to the coronavirus pandemic.

Outstanding loans disbursed by foreign currency deposit units (FCDU) of banks stood at $17.968 billion as of June, down 1.7% from the $18.271-billion level seen at end-March, the Bangko Sentral ng Pilipinas (BSP) said in a statement on Wednesday.

“The slowdown in FCDU lending may be due to lower customer inventory financing needs and working capital requirements as the ongoing health crisis continued to constrain domestic economic activity,” the BSP said.

On the other hand, loans granted by these banking units rose 2.8% year on year from the $17.482 billion seen as of June 2019.

FCDUs are central bank-approved bank units which perform transactions involving foreign currencies, mainly by accepting deposits and handing out loans.

BSP data showed 64.3% or $11.55 billion of FCDU loans went to Philippine residents, with 61.3% or $11.023 billion going to private entities.

Power generation firms (18.4%) cornered the largest chunk of the borrowings, followed by merchandise and service exporters (15.1%); public utility (7.3%); management/holding and stock brokerage (5.8%); and towing, tanker, trucking, forwarding, personal and other industries (5.6%).

On the other hand, more than a third (35.7%) or $6.418 billion were disbursed to non-residents.

By source, local banks disbursed 87.4% or $15.719 billion of the credit line. The remaining 12.5 or $2.249 billion were sourced from foreign lenders.

For the April to June period, gross credit disbursed by FCDUs declined 21.3% to $11.2 billion on the back of lower funding requirements for units of foreign lenders.

Meanwhile, deposit liabilities of FCDUs inched up 1% to $43.6 billion as of end-June from the $43.1 billion seen as of end-March. It also rose 5.3% from the $41.3 billion seen a year ago.

“The bulk of these deposits (98.2%) continue to be owned by residents, essentially constituting an additional buffer to the country’s gross international reserves,” the BSP said.

The overall loans-to-deposits ratio stood at 41.3% in the second quarter, down from the 42.4% seen as of the first quarter and the 42.3% seen at end-June 2019. — L.W.T. Noble