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Virgin coconut oil maker sees expansion opportunities

COTABATO-BASED Treelife, a maker of organic goods, sees big potential in expanding virgin coconut oil (VCO) production — but it will have to wait until after the coronavirus crisis.

“When we heard of the study of VCO having the potential to lessen the risk of COVID-19 (coronavirus disease 2019), we were hopeful, but as the study was still in its early stages, we as a company continued operations as per usual,” Rochella Marie Taray, marketing and export manager of TreeLife, said in an e-mail interview.

The “usual” operations meant supplying to “current clients who have been with us even before COVID-19 started,” she said.

Treelife, which started exporting VCO in 2017, ships most of its output to Europe.

“We have an agreement with our buyers that we can’t reveal who they are, but our main export market is Europe,” Ms. Taray said.

“There has been a 20% increase (in the second quarter this year) compared to the first quarter,” she said.

The company started selling to the Philippine market this year after finally receiving certification from the Food and Drug Administration in December.

Ms. Taray said there has also been an increase in domestic demand with the Department of Science and Technology’s announcement that the use of VCO has shown positive results in the treatment of coronavirus disease 2019 patients with mild symptoms.

“Potentially, there is a large opportunity (for even more demand),” she said, but expanding production to meet that demand during the outbreak is difficult.

She said with continued border restrictions and numerous quarantine protocols, it is difficult to hire people and move goods.

The company, which has various international certifications for its organic and fair trade operations, currently works with and employs more than 800 farmers and residents.

Treelife processes up to 40,000 coconuts per day to make VCO, which accounts for 50% of Treelife’s revenue stream.

Ms. Taray said while the company is planning to expand VCO production, it is also looking into other opportunities such as intercropping cardava banana in the coconut farms.

Treelife makes banana chips apart from various coconut-based products. — Maya M. Padillo

El Nido Resorts gets ready to welcome visitors

PALAWAN, voted the World’s Best Island in 2020 by Travel + Leisure, awaits visitors once more as it reopens its doors, the first among the archipelago’s tourism destinations. Now under the modified general community quarantine (MGCQ), and with the support of the Department of Tourism (DoT) and the municipal government, luxury chain El Nido Resorts is the first to receive the DoT Certificate of Authority to Operate in the town after complying with the guidelines to accept leisure guests at 50% capacity.

El Nido Resorts and the Lio Tourism Estate look forward to welcoming guests back in line with their commitment for safe and sustainable tourism.

The 40-year-old Miniloc Island Resort was the first to open its doors to guests coming from outside Palawan. A maiden flight in mid-July and a follow-through will be conducted in coordination with its partner airline, AirSwift. With satisfactory results and positive feedback from guests and the LGU, it will continue to service guests through scheduled flights from Manila for a three-night vacation from Sept. 11-14.

Under the “travel bubble” setup, guests will have to undergo RT-PCR testing 72 hours prior to their departure, and fill out health and travel declaration forms upon reservation.

The resort chain has been monitoring developments during the community quarantine period and have been maintained by the team members through its Be GREEN, Be Clean enhanced care program.

An eco-discovery island resort, Miniloc offers guests a back-to-basics Filipino coastal rustic village vibe. Guests can swim, snorkel, or dive with the huge jackfish and a variety of marine species at its house reef, or explore the Big and Small Lagoons, Snake Island, and other attractions around Bacuit Bay.

Meanwhile, Huni Resort, located at the Lio Tourism Estate on the mainland, is already accepting bookings from Palawan-based residents.

Earlier this year, the Ten Knots Group, which includes El Nido Resort chain, was awarded the world’s first Sea Turtle Friendly Tourism Certification by the Wildlife Friendly Enterprise Network  for its exceptional care for the aquatic animal. The group’s resorts are located in a high biodiversity area, and thus it exercises stewardship over the environment, stressing the importance of preserving nature to all stakeholders.

For inquiries, log on to www.elnidoresorts.com, e-mail holiday@elnidoresorts.com or call 0917-5841576.

Rates of T-bills, T-bonds may move sideways on BSP decision

RATES OF government securities on offer this week will likely move sideways after the central bank kept policy rates unchanged.

The Bureau of the Treasury (BTr) is looking to borrow P20 billion via the Treasury bills (T-bills) on Monday, broken down into P5 billion each from the 91- and 182-day debt papers and P10 billion via the 364-day instruments.

On Tuesday, the BTr will offer P30 billion in reissued 20-year Treasury bonds (T-bonds) that have a remaining life of 12 years and seven months and a coupon rate of 3.635%.

Yields of the T-bills may decline by five basis points from rates seen at the previous auction, Carlyn Therese X. Dulay, first vice-president and head of Wholesale Treasury Sales at Security Bank Corp., said in an e-mail on Friday.

Kevin Palma, peso sovereign debt trader of Robinsons Bank Corp., said via Viber over the weekend that “now that the Monetary Board (MB) held rates as expected, yields may just mirror the results of the previous auction.”

The policy-setting Monetary Board of the Bangko Sentral ng Pilipinas (BSP) on Thursday kept benchmark interest rates steady amid a steady inflation outlook.

Rates on the BSP’s overnight reverse repurchase, lending and deposit facilities are currently at record lows of 2.25%, 2.75% and 1.75%, respectively. The central bank aims to keep inflation within 2-4% this year.

The BTr borrowed P20 billion as programmed via the T-bills out of P63.306 billion in tenders last week even as rates inched up.

Broken down, the Treasury raised P5 billion as planned via the 91-day T-bills at an average rate of 1.118%, up from the 1.113% seen in the Aug. 10 auction.

It also made a full P5-billion award of the 182-day T-bills at a slightly higher average rate of 1.388% from 1.386% the prior week.

For the 364-day securities, the Treasury borrowed the programmed P10 billion at an average rate of 1.745%, down from 1.746% previously.

Meanwhile, Security Bank’s Ms. Dulay sees the 20-year notes fetching an average rate of 3.5% to 3.75%.

This is lower than the 5.341% fetched in the Nov. 25, 2019 auction when the Treasury last offered the tenor. It awarded just P12.271 billion out of the P20 billion programmed after market participants asked for higher rates.

“We expect the 20-year auction to receive slightly less demand versus the treasury bills due to its much longer duration. As the market expects the BSP’s easy policy stance to only last until the COVID-19 pandemic is resolved, the market may take more conservative positions in the 10-year (or longer) sector of the curve at this time,” she said.

Robinsons Bank’s Mr. Palma said the upcoming offer of 20-year papers should attract real money investors because of its relatively higher yield than tenors in the belly of the curve.

“In a low interest rate setting, there are two things you can do. Extend the duration of your portfolio or diversify to lower credit or a riskier asset. Popular opinion I think is to extend duration mostly to safe-haven assets,” he said.

At the secondary market, rates of the 91-, 182- and 364-day T-bills stood at 1.191%, 1.437% and 1.787%, respectively, while the 20-year notes were quoted at 3.578%, based on Bloomberg Valuation Service Reference Rates posted on Philippine Dealing & Exchange Corp.’s website.

The government has set a P170-billion borrowing program for August. It will auction off P110 billion in T-bills weekly and P60 billion in Treasury bonds fortnightly.

It plans to borrow around P3 trillion this year from local and foreign lenders to plug its budget deficit seen to hit 9.6% of gross domestic product. — Beatrice M. Laforga

SEC move sets back virus fight, says hospital operator

The Medical City (TMC) said the corporate regulator’s nullification of a shareholder group’s acquisitions of majority shares in Professional Services, Inc. (PSI), the hospital’s operator, puts the country’s response to the coronavirus disease 2019 (COVID-19) at risk.

The Securities and Exchange Commission (SEC) asked The Medical City to return to its ownership structure in 2013 and return money to investors, alleging that the acquisitions are illegal and fraudulent.

TMC in a press release on Sunday said that this is an additional challenge on hospital operations that are seeing a shortage in healthcare workers and delays in bill payments worth P750 million from state-led Philippine Health Insurance Corp. (PhilHealth). 

“Where in the law, or even in any other case, can you see the SEC telling a private corporation how to classify shares, how these shares should be sold, and when these shares can be paid? It’s almost as if they were preparing the way for a favored party to buy shares of TMC,” TMC Chairman Jose Xavier Gonzales said.

The SEC’s special hearing panel in November last year penalized Viva Holdings (Philippines) Pte. Ltd., Viva Healthcare Ltd., Fountel Corp. and Felicitas Antoinette, Inc. (FAI) for violating the mandatory tender offer rules under the Securities Regulation Code (SRC) and committing fraud in taking over PSI.

SEC said the four parties in 2013 transformed their business relation into beneficial ownership over each other’s shares. It said the entities increased their collective shareholdings in PSI to more than 50%, mainly through subscriptions in the firm’s capital stock increases, as approved by the regulator between 2013 to 2017.

The Commission en banc said that parties made it seem convincing that the purchases were made independently and will not be used to control the management of the company.

All the processes involved in the share purchases, such as subscription contracts, deeds of assignments and deeds of sale were “tainted with illegality and fraud,” SEC said.

But TMC said that the SEC does not have the jurisdiction to determine fraud.

“Lawyers have also pointed out the SEC has no jurisdiction to determine fraud. Unlike court decisions, which have trials and opposing counsels that allow judges to fully understand the information presented, the SEC decides a case based only on select interviews and paperwork,” TMC said.

TMC Chief Executive Officer Eugenio Jose F. Ramos said that the SEC decision comes “at a really bad time.”

“The last thing our staff needs right now is even more uncertainty — it’s hard enough to face patients who may or may not have COVID. It’s hard enough for them to come home worrying that they might be exposing their family to COVID. Now they also have to worry about what is going to happen to their hospital.”

BusinessWorld has reached out to SEC for comment, but has not received a response as of deadline time. — Jenina P. Ibañez

Happy drink in sad times: champagne makers gather pandemic harvest

BETHON, FRANCE — Wine makers in France’s Champagne region are this week gathering a bumper grape harvest, but there is a bitter aftertaste: the slump in demand for bubbly caused by the COVID-19 pandemic means some of the harvest will go to waste.

“We make the wine of happiness, and when people are sad, like during the lockdown, sales of champagne tend to collapse,” said Vincent Leglantier, a 34-year-old wine grower in Bethon, about 120 kilometers east of Paris.

At the Brun de Neuville vineyard collective, to which Mr. Leglantier belongs, teams of pickers in baseball caps worked their way along rows of vines, collecting grapes by hand. Most are migrant workers from eastern Europe who come every harvest season.

But this year is different. Sales are sharply down because weddings and parties — drivers of demand for champagne — are being canceled around the world.

In response, French champagne producers decided this month to put a cap on the amount of grapes they send for processing into wine.

They took the decision because a glut of the drink in cellars and on wholesalers’ shelves would drive down prices and tarnish the aura of luxury and exclusivity that the industry has spent years building up.

But the cap — limiting the amount of grapes that can be harvested from a hectare to 8,000 kg — means that anything over that figure must be left to rot.

The quota is one-fifth less than last year’s harvest and this year because of hot sunny weather that growers ascribe to climate change, the yield in many vineyards is even more bountiful than usual.

“You could say it’s maybe the best of the bad deals we could have reached,” Damien Champy, head of the Brun de Neuville vineyard cooperative, said of the quota as he stood in the cellar where bottles of champagne are left to mature. — Reuters

Collagen drink promised to slow down wrinkles

4LIFE RESEARCH Philippines, the local branch of a Utah-based direct-selling company focused on food supplements, has launched its newest product: a hydrolyzed collagen drink meant to promote healthy aging by slowing down the appearance of fine lines and wrinkles.

“At 4Life, we take pride in providing our consumers products that are well researched and scientifically backed. 4Life Transfer Factor Collagen boosts the immune system and slows down the appearance of fine lines and wrinkles. We are very proud of this unique formula,” Eileen Tan-Dario, general manager of 4Life Research Philippines, said in a statement.

The product, called 4Life Transfer Factor Collagen, contains 5,000 mg hydrolyzed collagen per 6.6 gm packet. The collagen is sourced from fish and comes from around the world. (Since the product is made from fish collagen, this supplement is not suitable for vegetarians and vegans.)

Aside from having collagen, which is said to improve skin health and “may also help increase muscle mass, prevent bone loss, and relieve joint pain,” according to healthline.com, 4Life’s collagen also includes “Transfer Factor,” a chemical taken from a human or animal that has already developed immunity against a certain disease.

4Life uses Transfer Factors taken from cow colostrum and egg yolk powder to help support the immune system. The 4Life transfer factor formula also contains Vitamins C and E.

“It is a product made by the immune system for the immune system. 4Life Transfer Factor can boost, educate, and balance the immune system,” the company said in a statement.

Collagen is a naturally occurring protein in the body and is a major component of connective tissues (tendons, ligaments, skin, and muscles) and has many important functions including providing skin with structure and strengthening bones. In mammals, 25% to 35% of all the proteins in the body are collagen.

Collagen, though abundant, starts to decline at age 25 and 4Life recommends taking the supplement as early as age 20 as a “proactive” measure.

“People age at different rates but if you think about in a proactive standpoint, which is always what we preach… If you really want to take a proactive approach, and really get the most benefit in Transfer Factor Collagen, you can take it in your 20s and 30s,” David Vollmer, chief scientific officer at 4Life Research USA, said in a digital conference on Aug. 7.

A box of 4Life Transfer Factor Collagen is priced at P2,248 and contains 15 sachets each weighing 6.6 grams. To use, mix one stick pack with “240 ml or more” of a desired beverage.

As a trial run, this writer (currently aged 26) tried one packet while writing, and the collagen powder tasted a bit salty with a hint of vanilla. Looking at the ingredients list, aside from the hydrolyzed fish collagen and the Transfer Factor formula, the product contains sweeteners and flavor-enhancers including salt and “natural vanilla-peppermint flavor.”

The 4Life Transfer Factor Collagen can be purchased on the 4Life Philippines website (https://philippines.4life.com/corp/product/collagen/1848) and 4Life representatives and distributors. — ZB Chua

PHL banks ramping up sustainability initiatives

LOCAL LENDERS have been ramping up their sustainability drive and the central bank’s recent membership with the Network for Greening the Financial System (NGFS) is expected to further boost the industry’s commitment to the cause.

“With BSP’s membership to the Network for Greening the Financial System, we will know the best practices in other jurisdictions as well as benefit from the exchanges of views and experiences of member-central banks particularly in the areas of risk management and stress testing exercises  with respect to climate and environment related risks,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said in a text message.

The central bank in May unveiled its sustainable finance framework for lenders which lays out the adoption of sustainability principles through environmental and social risk management systems. It also requires banks to have environmental, social and governance considerations in their governance frameworks, risk management systems, strategies and operations.

The BSP said it will give banks three years to adopt the provisions of the said framework.

Philippine banks have been committing to their sustainable development goals (SDG) through growing their sustainable loan portfolio.

Among them is the Bank of the Philippine Islands (BPI), which just raised P21.5 billion from its offer of coronavirus disease 2019 response bonds that will be used to fund lending for small businesses during the pandemic. The papers qualified as social bonds under the ASEAN Social Bonds Standards in the Philippines.

“Our SDG-related loan portfolio for 2019 was P390 billion or 35% of our 2019 consolidated loan portfolio,” BPI Head of Corporate Strategy and Investor Relations Maria Consuelo “Chinky” A. Lukban said in an e-mailed reply to questions.

Rizal Commercial Banking Corp. is also building up its sustainable lending portfolio to help promote a low carbon economy and to build resilience in their balance sheet.

“As of the end of July 2020, RCBC’s sustainable assets represent approximately 11% of total loan portfolio,” the bank’s Sustainable Finance Team said in a statement sent to BusinessWorld.

Earlier this year, RCBC Chief Risk Head of Corporate Risk Management Services Jamal Ahmad said the bank’s sustainable loan portfolio made up 10%, which represents P51.7 billion, of their loan book as of end-December.

RCBC raised P8 billion from two-year ASEAN sustainability bonds in June 2019. This was followed by the bank’s issuance of $300-million dollar-denominated bonds that was under and its sustainable finance framework and part of its medium-term program.

The road to integrating sustainability in business operations is not without hindrances, the two lenders said.

“There are also still some remaining challenges that banks may face — the need for more capacity building on sustainability, creation of environmental and social risk management systems and reporting standards, setting up of quantitative and qualitative evaluation metrics, transition risks, and market/industry limitation (whether banking industry or other sectors) and readiness,” Ms. Lukban said.

Despite these challenges, Ms. Lukban said banks are seeing opportunities as they push for sustainability including access to new markets, wider financing options, improved resilience and operational efficiencies, among others.

Meanwhile, RCBC said they are looking to improve their focus on sustainability in a way where profitability and sound financial management can coexist with environmental and social responsibility.

RCBC’s net profit dropped 40.9% year on year to P802 million in the second quarter due to higher loan loss provisioning. Despite this, the lender’s net income in the first half went up 17% to P3.11 billion, mainly backed by better trading gains.

The Yuchengco-led lender’s shares closed at P16.40 apiece on Thursday, unchanged from its previous finish.

Meanwhile, BPI’s net earnings slipped 24.9% year on year to P5.29 billion in the April to June period, also dragged by higher loan loss reserves amid the pandemic.

Its shares finished trading at P63.50 each on Thursday, inching up by 1.6% from its Wednesday close. — Luz Wendy T. Noble

Citicore targets 238-MW installed energy capacity

Citicore Power, Inc. expects the installed energy capacity of its renewables subsidiary to reach 238 megawatts (MW) by next year when it has completed a new solar farm in Central Luzon.

In a statement over the weekend, the company said its unit Citicore Renewable Energy Corp. (CREC) expects the construction of a 75-MW solar plant in Arayat and Mexico, Pampanga by November this year.

The P3.3-billion project is a joint venture with AC Energy Philippines, Inc., with the Citicore unit having a 50% economic ownership. The plant will stand on a 58-hectare property and is expected to start generating power in the fourth quarter of 2021.

“Citicore is excited with this partnership, we will continue to invest in the country’s clean energy future,” said Citicore President Oliver Y. Tan, adding that the company had contributed to the reduction of greenhouse gas emissions by more than 600,000 metric tons in the past four years.

He added the company had also provided light to about 4 million households while creating jobs in the communities where it operates.

“[W]e’d like to do more,” he said.

Citicore said the new solar plant is its commitment to help the country achieve “a healthy energy mix through clean and sustainable power sources.”

“When complete, the new solar plant will be added to the eight operating solar plants of Citicore which is located in various provinces in the Philippines that will total up to 238 [MW] capacity,” it said.

The company said it has a robust pipeline of solar projects with a total capacity of 1.5 gigawatts to be rolled out in the next five years.

Filipino-owned Citicore describes its projects as “sustainable ventures,” including power generation from a diversified mix of renewable energy sources.

Ivory Coast, Ghana create joint body to unify cocoa policies

ABIDJAN — The world’s two largest cocoa producers, Ivory Coast and Ghana, have created a joint body to improve coordination in research, price setting and the fight against child labor, the Ivorian government said on Thursday.

The two countries, which produce around 60% of the world’s cocoa, have coordinated on some of those issues before, but the new organization marks a formal step towards closer ties.

The Ivory Coast-Ghana Cocoa Initiative (ICCIG) will promote their cocoa industries internationally and defend their collective position in the global market, the Ivorian government said in a statement.

The organization will allow the two countries to formalize an agreement started three years ago whereby they both announce farmgate prices at the start of the growing season on Oct. 1, a measure aimed at reducing smuggling across their shared border.

Last year they raised the guaranteed price they pay cocoa farmers to around $1.50 per kilogram for the 2019/20 main crop harvest.

They also introduced a minimum price floor to address a perceived imbalance between farmers’ incomes and money made by big commodities traders. — Reuters

How big gatherings spread COVID-19: German scientists stage concert experiment

LEIPZIG, Germany — Around 1,500 volunteers equipped with face masks, hand disinfectant and tracking gadgets attended an indoor concert in Germany on Saturday as part of a study to simulate how the novel coronavirus spreads in large gatherings.

As part of the so-called Restart19 study, researchers from the University Medical Center in Halle want to find out how cultural and sporting events can safely take place without posing a risk to the population.

Volunteers were handed protective facemasks of the type typically used in hospitals and bottles of fluorescent hand sanitizer at the concert of German singer-songwriter Tim Bendzko in an indoor arena in Leipzig.

“I am extremely satisfied with the discipline displayed by the participants,” Stefan Moritz, the head of the study, told a news conference after the concert. “I was surprised how disciplined everyone was in wearing masks.”

He said results of the study, which is being financed by the states of Saxony and Saxony-Anhalt, were expected in four to six weeks.

The participants were also given contact tracers to help track the distance between concertgoers and to identify in which parts of the arena, such as entrance halls and grandstands, people might crowd too closely together.

Researchers asked participants to regularly disinfect their hands using the fluorescent sanitizer so scientists can identify — with the help of ultraviolet light — which surfaces are touched frequently and pose a risk for spreading the virus.

Sporting events such as Liverpool’s Champions League soccer match against Atletico Madrid and the Cheltenham Festival, a horse racing event, in Britain in March have been blamed for playing a role in spreading COVID-19 (coronavirus disease 2019).

Most events with big crowds have been put on hold.

A decision to grant approval for a concert of German singer Sarah Connor with 13,000 attendees on Sept. 4 in Duesseldorf has faced sharp criticism by virologists and local politicians. — Reuters

Corolla Cross: Ute cases

 

Toyota joins the compact crossover party

NO ONE could have possibly predicted the awful, Stranger Things-type 2020 we’ve had thus far.

Families and industries alike have been brought to their knees as the various quarantine restrictions necessitated by COVID-19, at worst, effectively shuttered businesses, grounded transportation, and lopped off employees (to the tune of 45.5% adult joblessness in July, according to the Social Weather Stations).

For an auto industry just starting to recover in sales from the deleterious side effects of the Tax Reform for Acceleration and Inclusion first implemented in 2017, optimism had understandably suffused people ahead of 2020 — only to be dashed most tragically. The direst month in terms of sales was April when, because of the temporary closure of dealerships, member companies of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) moved a combined, lowest-ever 133 units.

Nonetheless, as seen in other markets, there was pent-up demand in the Philippines which became apparent with the reopening of dealerships. Significantly, the new normal and its social-distancing controls didn’t dampen the spirit of auto companies. One after another, they launched a procession of models (digitally, of course).

Toyota Motor Philippines Corp. (TMP), the country’s reigning “triple-crown” champ (leading in passenger, commercial and total vehicles sales) for 18 years in a row has had a slew of unveilings as well in the Wigo, Vios, a Hiace variant (the Cargo), and the activation of its leasing service Kinto One (with Toyota Financial Services Philippines). Along with the rejuvenation of its Toyota Certified Used Vehicle program, we can take cognizance of a consistent game plan for the Japan-headquartered car maker.

From here, it appears that TMP (and its executives have said as much as well) is addressing the heightened need for private mobility in the face of a public transportation system both hobbled and restricted. Simply put, TMP wants to give us quality vehicles that are more affordable — with the end goal of getting many of us on the road. It makes good business sense as well knowing what we do about the aforementioned economic hardship — coupled with the banking sector’s more subdued lending appetite.

Having said that, Filipinos, like a huge chunk of the global audience, are undeniable fans of compact crossovers. So TMP is covering that base as well with the launch of the Toyota Corolla Cross which, price-wise, slots between just above its entry-level SUV Rush (whose most expensive variant costs P185,000 less than the cheapest Cross).

Surely, you must have noticed how the hallowed Corolla name is now being used for the first time on an SUV. Ahead of the launch, TMP dropped a hint thus with the following text: “The Corolla we all know and love, now also in a new exhilarating form factor.”

The platform (the TGA-C) it’s built on is the same one used by, among others, the Toyota C-HR and the Lexus UX. Positioned as a “stylish urban vehicle,” the Corolla Cross is said to meld Toyota’s signature “QDR” (quality, durability, and reliability) with style and functionality.

Significantly, Toyota further embraces its hybrid cred — doubling down via a hybrid trim in pursuit of realizing its “vision of sustainable mobility and makes self-charging hybrid technology more accessible to Filipinos,” according to a release.

“Guided by our philosophy of making ever-better cars, Toyota took the best of a trusted model, the Toyota Corolla, and turned it into a sleek and modern crossover,” said TMP President Atsuhiro Okamoto during the online launch. “The Corolla Cross is designed to move you in comfort and style, whether you’re seeking adventure, doing business, or simply spending time with people you love.”

On the outside, the vehicle’s imposing double trapezoid front grille (which calls to mind the RAV4’s) lends some width and presence. The hybrid variant gets so-called LED Light Curtain Daytime Running Lights and “a subtle blue accent to the bi-beam LED headlamps” to complement the blue Toyota logo, which denotes electrification.

TMP described the Corolla Cross cabin, which comes covered in leather for the hybrid, as “classy” and “minimalist.” It continued, “The wide and spacious cabin space gives abundant head clearance for easier ingress and the slim seatback gives ample legroom for backseat passengers. The thinner pillars and rear quarter window add to the roomier atmosphere of the Corolla Cross and provides more outward visibility.”

It boasts a smart entry and push start-stop system, power adjust with auto fold for the side mirrors, power windows and speed-sensing door locks, and for the 1.8 V hybrid variant, rain-sensing windshield wipers and eight-way power-adjust driver’s seat. The driver may access Toyota Safety Sense (TSS) features and seven-inch multi-information display (or the 1.8 V hybrid), and audio, and phone connectivity features for all variants via steering-wheel switches. Good news for habitual “pairers”: Apple Carplay and Android Auto are compatible with the 1.8 V Hybrid’s display audio.

Under the hood of the hybrid is a 1.8-liter engine with Atkinson Cycle (delivering 142Nm at 3,600rpm, and an electric motor to bump up the total system output to 120hp). Three driving modes (Eco, Power, and EV) give drivers their druthers on response and fuel efficiency. The 1.8 G CVT gets a 16-valve four-cylinder, DOHC chain drive with dual VVT-I serving up 138hp and 172Nm (at 4,000rpm).

The Corolla Cross receives the following safety equipment across all variants: Seven SRS air bags, anti-lock brakes with brake assist and electronic brake force distribution, vehicle stability control with traction control, hill start assist, and three-point emergency locking retractor seat belts for all occupants. The hybrid has two front and four rear clearance sonars, while the G CVT variant has two rear sonars. A reverse camera is available for all variants. The 1.8 Hybrid variant additionally receives TSS features such as the pre-collision system, adaptive cruise control, lane departure alert, lane tracing assist, and automatic high beam — along with a blind spot monitor and rear cross traffic alert.

The Corolla Cross comes in two variants and four colors, available at all 70 dealerships across the country.

TMP will also be making the Corolla Cross Hybrid variant available through the Balloon Payment Plus financing plan. Said TMP First Vice-President Sherwin Chualim: “We understand customer apprehension on hybrid technology: affordability, maintenance and resale value — that’s why we are offering the Corolla Cross hybrid with Balloon Payment Plus — lower monthly payments, inclusive of periodic maintenance, with guaranteed future resale value.”

For more information, visit www.toyota.com.ph and follow the official social media pages at ToyotaMotorPhilippines (Facebook and Instagram), @ToyotaMotorPH (Twitter), and Toyota PH (Viber and Telegram). More information about hybrid electric vehicle technology can be found at www.toyota.com.ph/hybrid.

Gov’t debt yields end flat

YIELDS on government debt securities ended flat last week amid a lack of catalysts in the local market.

Debt yields in the secondary market inched down by 2.4 basis points (bps) on average week-on-week, based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates as of Aug. 20 published on the Philippine Dealing System’s website.

For the short-dated debt papers, the 91- and 182-day Treasury bills saw their yields fall 4.6 bps and 5.2 bps to fetch 1.191% and 1.437%, respectively. Meanwhile, the yield on the one-year paper inched up by 0.8 bp to 1.787%.

Except for the two-year Treasury bonds (T-bonds), rates of debt papers at the belly all went down. The three-, four-, five- and seven-year T-bonds saw their yields drop by 3.3 bps, 7 bps, 8.8 bps and 6.5 bps, respectively, to 2.15%, 2.273%, 2.389%, and 2.571%. The two-year paper recorded a flat 0.6-bp increase to fetch 2.012%.

For long-dated securities, the rate of the 10-year T-bonds fell by 6.5 bps to 2.639%, while the 20- and 25-year T-bonds increased by 7.9 bps and 6.2 bps, respectively, to yield 3.578% and 3.653%.

“[The market] was generally quiet as investors wait for new catalysts,” a bond trader said in a Viber message.

The bond trader noted the decision of the Bangko Sentral ng Pilipinas (BSP) to hold rates was “widely anticipated” by the market and thus did not have much of an effect on yields.

The BSP’s Monetary Board on Thursday decided to keep the rates on its overnight reverse repurchase, lending and deposit facilities at their record lows of 2.25%, 2.75% and 1.75%, respectively.

The central bank has so far slashed benchmark rates by 175 bps this year to encourage borrowing and lending amid the coronavirus pandemic that plunged economies into recession.

BSP Governor Benjamin E. Diokno had said their policy stance is likely to be on hold for the next few quarters as earlier easing moves were preemptive.

The BSP last week raised the inflation forecast for this year to 2.6% from the 2.3%. The 2021 and 2022 forecasts were also hiked to 3% (from 2.6%) and 3.1% (from 3%), respectively.

“Expect the yields to move sideways with a downward bias especially on the three to 10-year space,” the bond trader said.

“You have the usual month-end period of profit taking, so there could be some upward pressure, but I don’t think it will be much,” the bond trader added.

For Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort: “[Yields on] local interest rate benchmarks would be relatively steady, with some slight downside as has been seen in recent weeks, especially if excess peso liquidity in the financial systems remain.”

“Any further downward movement in the yields have slowed down also in recent weeks as most peso BVAL yields have been mostly well below the inflation rate of 2.7%, thereby resulting in negative net interest rate returns for fixed income investors,” he said in an e-mail.

Mr. Ricafort added that despite the uptrend in domestic inflation, near-zero or negative interest rates in many developed economies have also helped keep local rates at record-low levels.

“[G]lobal fund managers and investors search for higher returns in emerging markets with relatively better economic and credit fundamentals as well as favorable credit ratings such as the Philippines, as better credit ratings also helped reduce the borrowing costs/interest rates in the country,” he said. — J.E. Hernandez

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