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BFSB seeks bondholders’ consent ahead of planned merger with BPI

BPI FAMILY SAVINGS Bank (BFSB) is seeking consent from its bondholders to allow the Bank of the Philippine Islands (BPI) to take over the obligations for their papers after the lenders’ merger.

The consent solicitation period for holders of BFSB’s fixed- rate bonds will run from July 13 to Aug. 24, which could change at the thrift bank’s discretion, its parent BPI said in a filing on Tuesday.

“The merger will not alter the interest rate or maturity date of the bonds. Once the merger becomes effective, BPI will assume the issuer’s obligations under the bonds such as the payment of interest and the principal upon maturity date,” the listed bank said.

Consent forms may be submitted to the Trust Banking Group of the Land Bank of the Philippines (LANDBANK) or to BPI Capital Corp. through BPI or BFSB branches until noon of Aug. 24.

LANDBANK’s Trust Banking Group is the consent solicitation advisor for BFSB while BPI Capital is the trustee for the procedure.

Bondholders will be informed of the terms and conditions and will be provided with the forms and requirements for the consent solicitation through a kit that will be distributed from July 13 to 30, BPI said.

BFSB will pay consenting bondholders that have completed the requirements with an applicable consent fee of P1 per P1,000 of the principal amount of the bonds they purchased.

BFSB raised P9.6 billion from its maiden bond issuance in December 2019. The papers have a fixed rate of 4.3% per annum paid quarterly.

The merger plan between the Ayala-led lenders with BPI as the surviving entity was announced in January.

The merger will take effect once the Securities and Exchange Commission issues a certificate of merger or by Jan. 1, 2022, whichever is later, BPI said.

BPI last week said it has secured approval from the central bank to increase its capital stock to P50.6 billion ahead of the effectivity of the merger.

“We believe this merger will help realize savings on operating expenses given the consolidation of branch locations and marketing support, reduction in tax leakages from inter-company services, and streamlining of compliance and reportorial requirements,” BFSB President Ma. Cristina L. Go said in a statement on Monday evening.

BFSB’s assets stood at P286.2 billion as of end-2020, based on central bank data. Its loan portfolio is mainly focused on the housing and auto sector.

Meanwhile, its parent BPI’s net earnings dropped 21.64% to P5 billion in the first quarter from P6.381 billion a year earlier. This was caused by declining revenues amid lower net interest income.

BPI’s shares closed at P89 apiece on Tuesday, down by 40 centavos or 0.45% from its previous finish. — L.W.T. Noble

COVID-19 lessons can help in country’s fight vs dengue

Public Health Image Library/US Centers Disease for Control and Prevention

Lessons learned from the coronavirus disease 2019 (COVID-19) pandemic can be applied to prevent dengue outbreaks in the Philippines and enhance the country’s outbreak response, according to health experts during the recent Health Connect forum titled “Dengue Awareness: How to Protect Ourselves from the Next Dengue Epidemic.”

“Addressing dengue requires a whole-of-society approach. The COVID-19 pandemic highlighted the importance of improved case surveillance and early diagnosis, cooperation between public and private sectors, and responsible health communication,” said physician and medical anthropologist Dr. Gideon Lasco, senior lecturer at the Department of Anthropology of the University of the Philippines Diliman.

Dr. Lasco noted that disease is determined by social, economic, and environmental factors. “This is why we need to adopt a holistic approach that involves the government, the community and the private sector, which is more comprehensive and more effective in the long run.”

Dr. Beverly Lorraine Ho, Director of the Disease Prevention and Control Bureau of the Department of Health (DoH), agreed. “LGUs [local government units] and local communities supported by non-governmental organizations and the private sector serve as the backbone of our dengue response. Successful implementation of key strategies relies heavily on the active participation of community members.”

The DoH has deployed a number of dengue prevention and control strategies anchored on intersectoral collaboration. The “4 o’clock habit” vector control program rallies community members, including housewives, students, and office employees to work with the LGU to search and destroy mosquito breeding sites at 4 p.m., which is the time when mosquitoes carrying the dengue virus are most active.

The Enhanced 4S Strategy encourages households to “search and destroy” mosquito-breeding sites; employ “self-protection measures” like wearing long pants and long-sleeved shirts; “seek early consultation” if one develops symptoms associated with dengue; and “support fogging/spraying” only in hotspot areas with documented increase in dengue cases for two consecutive weeks to prevent an impending outbreak. The DoH also conducts periodic anti-mosquito fogging and misting, and larval trapping activities as part of vector surveillance.

Proactive communication of dengue prevention, transmission, and symptoms are crucial in enabling community members to protect themselves against the mosquito-borne disease, Dr. Ho stressed. Symptoms of dengue include sudden onset of fever of 2 to 7 days, plus two of the following: headache, body weakness, joint and muscle pains, pain behind the eyes, loss of appetite, vomiting, diarrhea, and skin rashes. Adequate information can be a catalyst in promoting proper health-seeking behavior such as seeking early consultation at the nearest health facility if dengue symptoms develop, she added.

The DoH emphasized the need for continued vigilance, noting that dengue infected about 400,000 Filipinos and caused more than 1,000 deaths in 2019, prompting the DoH to declare a national dengue epidemic that year. They believe that stay-at-home directives as part of COVID-19 community quarantine protocols may have complemented dengue prevention and control strategies, resulting in a significant decrease in dengue cases and deaths since the pandemic began. DoH data showed an 81% decrease in dengue cases and deaths for 2020 compared to 2019, with a continued 55% decrease in cases and 56% decrease in deaths during the same time period.

“While we celebrate our country’s gains in our fight against dengue, we must always keep our guard up to protect the people from this threat. There is a cyclical rise and fall in the number of dengue cases in the Philippines, with outbreaks occurring every three to five years. The country cannot risk another surge of dengue infections that would further burden our health system. We encourage communities to practice the DoH 4S strategies to prevent a dengue outbreak and protect our children and their families during these challenging times,” Dr. Ho said.

Dengue has caused immense human suffering for individuals and families, and has also resulted in huge health and economic burden for the country. Dengue is a cyclical disease which the public cannot be complacent about.  Lessons from the COVID-19 pandemic could be well applied in preventing a surge in dengue cases. There is need to prepare while cases are low. Preparations must center on close monitoring or disease surveillance, responsible health communication, strengthening of the health system and a whole-of-society approach in the fight against this vector-borne disease.

 

Teodoro B. Padilla is the executive director of the Pharmaceutical and Healthcare Association of the Philippines (PHAP). PHAP represents the biopharmaceutical medicines and vaccines industry in the country. Its Members are in the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos.   

Headline inflation rates in the Philippines (June 2021)

PHILIPPINE INFLATION eased to a six-month low in June following three straight months of steady price increases, the Philippine Statistics Authority (PSA) said on Tuesday. Read the full story.

Headline inflation rates in the Philippines (June 2021)

How PSEi member stocks performed — July 6, 2021

Here’s a quick glance at how PSEi stocks fared on Tuesday, July 6, 2021.

Peso weakens further ahead of Fed minutes

THE PESO weakened versus the greenback for the fourth straight day on Tuesday as the market expects hawkish signals from the US Federal Reserve and due to an impasse in talks among the world’s largest oil producers.

The local unit closed at P49.50 per dollar on Tuesday, retreating by 26 centavos from its P49.24 finish on Monday, based on data from the Bankers Association of the Philippines.

Tuesday’s close was the weakest in nearly a year or since July 16, 2020 when it finished trading at P49.535 per dollar, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The peso opened Tuesday’s session at P49.23 per dollar, which was also its strongest showing for the session. Meanwhile, its weakest showing was at its close of P49.50.

Dollars traded inched down to $1.068 billion on Tuesday from $1.073 billion on Monday.

The peso weakened on risk-off sentiment as investors await clearer signals from the Fed on its monetary policy, Mr. Ricafort said.

Minutes from the Fed’s June 15-16 policy meeting are set to be released on Wednesday. The meeting saw more US central bank officials expecting the first rate hike to happen in 2023, sooner than its previous projection of 2024. Seven officials even believe increasing rates will start by 2022, Reuters reported.

Meanwhile, a trader attributed the peso’s continued decline to concerns on higher inflation after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) failed to reach an agreement on oil production.

International benchmark Brent crude oil was trading above $77 a barrel on Monday, or 1.2% higher in the session, as OPEC+ ministers called off oil output talks after clashing last week when the United Arab Emirates rejected a proposed eight-month extension to output curbs, meaning no deal to boost production has been agreed, Reuters reported.

Some OPEC+ sources said there would be no oil output increase in August, while others said a new meeting would take place in the coming days and they believed there will be a boost in August.

For Wednesday, Mr. Ricafort expects the local unit to move within the P49.35 to P49.55 band versus the dollar, while the trader gave a forecast range of P49.40 to P49.60. — L.W.T. Noble with Reuters

Shares decline as trading volume remains low

COURTESY OF PHILIPPINE STOCK EXCHANGE, INC.

STOCKS snapped their three-day rally on Tuesday despite a better-than-expected June inflation print on weak trading volume and as investors booked profits from the market’s recent climb.

The Philippine Stock Exchange index (PSEi) shed 43.95 points or 0.62% to close at 6,992.43 on Tuesday. The broader all shares index lost 16.95 points or 0.39% to end at 4,298.66.

“Philippine shares slipped below the 7,000 mark as investors sold on news with the release of June CPI (consumer price index) which was an improvement from the previous reading,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“There was very little excitement about the confirmed continuing deceleration of inflation, which means that it was already priced in by the market,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

“Trading volumes remain below the daily average and just about half of what we saw when the market rallied at the beginning of the year. This tells us that risk appetite may be peaking, which is also how the technicals are looking,” Mr. Mangun added.

Value turnover increased to P5.1 billion on Tuesday with 2.51 billion issues traded from the P4.31 billion with 1.79 billion shares switched hands the previous day.

The Philippine Statistics Authority reported that headline inflation stood at 4.1% in June, easing from the 4.5% logged in May and the slowest rate in six months or since the 3.5% recorded in December 2020. However, this was above the 2.5% recorded in June last year.

The June figure was lower than the 4.3% median in a BusinessWorld poll conducted late last week. It likewise fell within the 3.9%-4.7% estimate given by the Bangko Sentral ng Pilipinas for the month, but was still higher than the central bank’s 2-4% target for the year.

“Investors may have chosen to remain on the sidelines while the US markets were closed on Monday,” Timson Securities, Inc. Trader Darren Blaine T. Pangan added in a Viber message.

Majority of sectoral indices closed in the red on Tuesday except for services, which went up by 8.02 points or 0.49% to 1,628.06.

Meanwhile, property went down by 35.15 points or 1.03% to 3,368.25; holding firms declined by 51.78 points or 0.73% to 7,010.53; industrials lost 48.39 points or 0.49% to close at 9,738.24; financials inched down by 3.51 points or 0.23% to 1,512.42; and mining and oil shaved off 9.42 points or 0.09% to 9,867.90.

Decliners beat advancers, 112 against 96, while 52 names closed unchanged.

Net foreign selling slowed to P37.55 million on Tuesday from P82.10 million on Monday.

Timson Securities’ Mr. Pangan expects the index to trade between 6,820 and 7,080 on Wednesday.

“The lack of potentially positive catalysts in the short term will incite profit taking,” AAA Southeast Equities’ Mr. Mangun said. “The PSEi is looking toppish around the 7,000 area and may pull back towards stronger support levels.” — Keren Concepcion G. Valmonte

NGCP sees completion of repairs to island grid cable link this year

NGCP FB PAGE

By Angelica Y. Yang, Reporter

THE NATIONAL Grid Corp. of the Philippines (NGCP) said it plans to complete repairs on a crucial transmission project which will connect the separate grids of Mindanao and Visayas by the end of the year.

“We are targeting completing repairs by end of year,” NGCP Spokesperson Cynthia P. Alabanza told BusinessWorld via Viber Tuesday.

She was referring to the Mindanao-Visayas Interconnection Project (MVIP), the timeline of which was further pushed back after the NGCP discovered damage in February to portions of a submarine cable connecting Zamboanga del Norte and Cebu.

The MVIP had been delayed also by travel restrictions imposed by the pandemic.

Asked to comment on the cause of the damage to the cable, Ms. Alabanza said the company was “not yet at liberty” to make a disclosure.

The NGCP has said it received initial reports of a vessel present in the area a month after the cable was laid. It discovered the damage when it was laying the second cable for the project.

NGCP said that repairs will require another cycle of procurement, awarding, and cable laying. Weather and tides will dictate the schedule of the operation, it said.

By connecting the grids in Mindanao and Visayas, the MVIP will allow for excess power to be exported where it is needed, minimizing the instances when one grid has too little in reserve.

In 2018, the Energy department certified the MVIP as an energy project of national significance, whose proponent is entitled to an expedited permitting process.

Coconut industry roadmap to serve as guide for trust fund

PHILSTAR FILE PHOTO

THE COCONUT Farmers and Industry Roadmap (Coco-FIRM) will serve as the basis for the development plan to be carried out under Republic Act (RA) No. 11524 or the Coconut Farmers and Industry Trust Fund Act, the Philippine Coconut Authority (PCA) said.

PCA Administrator Benjamin R. Madrigal, Jr. said in a mobile phone interview Tuesday that Coco-FIRM points to the general direction of the action needed to improve the coconut industry and improve the lives of coconut farmers.

“Coco-FIRM will serve as the backbone of the Coconut Farmers and Industry Development Plan (CFIDP). Meanwhile, the CFIDP will complete the details and the parameters for evaluation, reporting and monitoring, and allocation under the Trust Fund,” Mr. Madrigal said.

“Compared to Coco-FIRM, CFIDP will also focus on the roles of the various implementing agencies as provided in the law,” he added.

According to Mr. Madrigal, the roadmap has seven thematic areas such as the promotion of coconut farmers’ welfare and social protection; empowerment of coconut farmers’ groups; increasing and sustaining coconut production programs; and the creation of hubs for coconut products.  

He added that Coco-FIRM also aims to enhance the global competitiveness of traditional and non-traditional coconut products, expand trade and marketing, conduct innovative research and development, and improve institutional policy.  

RA 11524, signed by President Rodrigo R. Duterte on Feb. 26, provides for the drafting of the CFIDP to serve as guide in deploying investment from the trust fund, which was funded by taxes collected from coconut farmers during the Marcos administration.

Under the law, the Bureau of the Treasury will transfer P10 billion to the trust fund in the first year, followed by another P10 billion in the second year, P15 billion in the third year, P15 billion in the fourth year, and P25 billion in the fifth year.

In a separate statement Tuesday, Agriculture Secretary William D. Dar said the PCA is the first DA agency to have completed a commodity industry roadmap.

Mr. Dar added that the law allows for the modernization and improvement of the coconut industry, with assured funding of P75 billion over the next five years.

“We consider (the law) a ‘game-changer’ that will help transform the lives of 2.5 million coconut farmers and their families by turning low productivity into higher gains,” Mr. Dar said.

According to the PCA, the Philippines is the top exporter of coconut products, generating average export revenue of P91.4 billion between 2014 and 2018. — Revin Mikhael D. Ochave

Energy dep’t pitches Napocor carbon sequestration program to IPPs

THE ENERGY department is encouraging independent power producers (IPPs) to join the National Power Corp.’s (Napocor) carbon sequestration program, which is expected to benefit nine watersheds and geothermal areas managed by the company while also helping participants meet their offsetting targets.

In an advisory posted Tuesday, the Department of Energy (DoE) identified the nine areas to be protected by Napocor’s Energy Sector Carbon Sequestration Initiative: the Upper Agno river watershed in Benguet and nearby provinces; the San Roque watershed in Pangasinan; the Angat Watershed in Bulacan, Nueva Ecija, Quezon and Rizal provinces; the Caliraya-Lumot Watershed reservation in Laguna; the Buhi-Barit Watershed Reservation in Camarines Sur; portions of the Agus River basins in Lanao del Norte and Lanao del Sur; part of the Pulangi River basin in Bukidnon; the Makiling-Banahaw Geothermal reservation in Batangas and Laguna; and the Tiwi Geothermal reservation in Albay.

Energy Secretary Alfonso G. Cusi, who signed the advisory on June 18, said the Napocor program aims to improve the condition of its watersheds, contribute to climate change mitigation efforts, and give energy firms the chance to reach their carbon offsetting requirements.

He added that the program seeks to maximize the use of the universal charge-environmental charge fund for “protection and reforestation projects” under Napocor, which he described as currently having limited coverage.

No other details were given in the advisory. — Angelica Y. Yang

Citicore Power targets 6.64 MW of solar rooftop installations in Bataan freeport by this month

BW FILE PHOTO

RENEWABLE ENERGY (RE) company Citicore Power, Inc. hopes to install 6.64 megawatts (MW) of solar rooftops on 14 buildings in the Authority of the Freeport Area of Bataan (AFAB) this month.

In a statement, Citicore said that the project is expected to reduce the AFAB’s carbon emissions by 5,800 metric tons annually and help it save as much as P5.3 million pesos per year.

The company added that it has completed installing 2.84 MW on eight buildings after seven months, two months ahead of its deadline.

“The early, though still partial, completion of our contract will allow the AFAB locators to harness solar energy and embed energy efficiency as an integral part of their operations,” Citicore President Oliver Y. Tan said.

AFAB Deputy Administrator for Operations Alewijn Aidan K. Ong said harnessing RE marks the start of the “greening” of its operations, reducing its impact on the environment and driving down energy costs.

“We are confident that our partnership with Citicore will help the AFAB achieve these objectives; their fast project delivery, industry expertise and collaborative approach is uniquely complementary to our plans,” he said.

Citicore operates eight solar farms with an aggregate installed capacity of 163 MW.

It plans to make an energy-focused real estate investment trust offering in September or October, with plans to reinvest the proceeds in 15 new solar projects in Luzon.

In February, Citicore reported that it is allocating P4 billion for capital expenditure for solar and hydro projects, with P2.5 billion funding solar. — Angelica Y. Yang

SEC revokes credit firm’s license over debt collection practices 

THE SECURITIES and Exchange Commission (SEC) canceled the certificate of authority held by Familyhan Credit Corp. which had allowed it to operate as a lending company after a finding of unfair debt collection practices.

In an order dated April 13, the SEC Corporate Governance and Finance Department (CGFD) found the lending firm committed three violations of SEC Memorandum Circular No. 18, Series of 2019. The circular spells out which debt collection methods are deemed unfair.

Specifically, Familyhan Credit was found to have contacted individuals in the borrower’s contact list who were not listed as guarantors or co-makers in the loan agreement.

 “Notwithstanding borrower’s consent, contacting the persons in the borrower’s contact list other than those who were named as guarantors or co-makers shall also constitutes unfair debt collection practices,” the CGFD said.

The CGFD also said it gave Familyhan Credit time to adjust its collection practices to be compliant with the memorandum.  

Familyhan Credit was also found to have committed eight violations of Republic Act No. 3765 or the Truth in Lending Act (TILA), and SEC Memorandum Circular No. 7, Series of 2011, which sets the rules for implementing TILA in matters of the transparency of loan transactions. The rules are designed to discourage the uninformed use of credit.

The CGFD found that the lending company did not disclose the true cost of the loans to its borrowers.

“It is clear that the net proceeds of the loan is one of the minimum (items of) information that needs to be disclosed by a creditor to its borrower. Thus, missing such information, respondent cannot contend that they have duly complied or substantially complied with the TILA,” the CGFD explained.  

Familyhan Credit filed a motion for reconsideration, which was denied by the CGFD for lack of merit in a resolution dated June 18.

The SEC has so far canceled the licenses of 35 financing and lending companies over various violations.

It has also revoked the certificate of registration of 2,081 lending companies for failing to secure a certificate of authority. The total number of online lending applications ordered to cease operations now stands at 58 in the absence of the authority to operate as a lending or financing company. — KCG Valmonte

256 more people infected with COVID-19 variants

PHILIPPINE STAR/ MICHAEL VARCAS

By Kyle Aristophere T. Atienza, Reporter

HEALTH authorities on Monday night said 256 more people have been infected with more contagious variants of the coronavirus, though most of them have either died or recovered.

Health Undersecretary Maria Rosario S. Vergeire did not immediately reply to a text message asking why the cases had not been immediately reported.

Two more Filipinos have been infected with the Delta variant of the coronavirus that has triggered a fresh surge in cases in India, bringing the total to 19, the Department of Health (DoH) said.

The two were returning Filipino migrant workers from Saudi Arabia and have since recovered, the agency said in a statement.

The Filipinos arrived in the Philippines on May 29 and had completed a 10-day quarantine period. They have been discharged from the quarantine facility after recovering, DoH said.

The agency said 132 more people have been infected with the Alpha variant of the coronavirus, which was first detected in the United Kingdom, bringing the total to 1,217. Of these, 125 were local cases, one was a returning migrant Filipino, and six were still being verified.

Fifteen of the patients have died and 117 have recovered, it added. 

DoH also reported 119 new cases of the Beta coronavirus variant that was first detected in South Africa, bringing the total to 1,386. Of these, 111 were locals, two were returning overseas Filipinos, and six were still being verified.

Three patients were being treated, 104 have recovered and 12 died, it said.

Three more people have been infected with the Theta coronavirus variant that was first detected in the Philippines, DoH said. All of them have recovered.

The Theta variant is not a “variant of concern” since Health authorities need more data to say whether it is a threat.

DoH reported 4,114 coronavirus infections on Tuesday, bringing the total to 1,445, 832. The death toll rose to 25,296 after 104 more patients died, while recoveries increased by 6,086 to 1.37 million, it said in a bulletin.

There were 49,613 active cases, 90.8% of which were mild, 3.9% did not show symptoms, 1.5% were critical, 2.2% were severe and 1.62% were moderate.

The agency said 28 duplicates had been removed from the tally, 22 of which were tagged as recoveries. Thirty-eight cases tagged as recoveries were reclassified as active cases, while 63 patients tagged as recoveries were reclassified as deaths. Nine laboratories failed to submit data on July 4.

CORONAVAC
Meanwhile, the government told local governments to prioritize vaccine patients due for their second dose of CoronaVac after China’s Sinovac Biotech Ltd., which makes the vaccine, has said its next delivery would get delayed.

Of 11.7 million vaccines doses given out as of July 4 — 2.8 million second doses and 8.8 million given as first shots — vaccine czar Carlito G. Galvez, Jr. said in a separate statement, citing a “disparity” in the government’s vaccination program.

“We are seeing a disparity in our national vaccination report wherein out of the 11 million jab administered, only 2.8 million were fully vaccinated,” Mr. Galvez said in a statement. “This should be addressed by our implementing units.”

In an advisory from the National Vaccination Operations Center signed by Mr. Galvez on July 4, local authorities were notified of the delays in the arrival of Sputnik V vaccines from Russia and the weekly delivery of CoronaVac vaccines.

The center ordered local governments to completely vaccinate those who have received their first CoronaVac dose until the supply stabilizes. It also asked local authorities to use other vaccines brands for first shots.

“We have to look into this matter seriously and act on it fast because based on studies, the full protection against the new variants of COVID-19 (coronavirus disease 2019), particularly the Delta variant, can only be assured when an individual is fully vaccinated with two doses,” Mr. Galvez said.

About 12 million doses of coronavirus vaccines have been given out, Vivencio B. Dizon, deputy chief enforcer of the government’s pandemic response. About one million doses had been given out in the past four days, he told a televised news briefing.

The Philippines has received about 17.4 million vaccines, presidential spokesman Herminio L. Roque, Jr. said on Monday. A million AstraZeneca vaccines donated by Japan and 170,000 Sputnik V vaccines bought from Russia are set to arrive this week.

About 1.1 million health workers, 897,719 seniors and 788,630 seriously ill people had received their second doses as of July 2. About 26,109 essential workers and 227 indigent Filipinos have also been fully vaccinated.

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