Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 7748

SEC looking to allow corporate debt funds as crisis response

By Denise A. Valdez, Reporter

THE Securities and Exchange Commission (SEC) is seeking to launch corporate debt funds (CDF) that will invest in debt papers of large corporations and medium-sized enterprises.

The regulator released a draft memorandum circular on Wednesday proposing to introduce the new investment vehicle as a means to cope with the coronavirus disease 2019 (COVID-19) pandemic.

Through CDFs, the SEC said it hopes the mutual fund industry may help avert credit and liquidity crises emerging from the dampened economy.

The proposed guidelines classifies a CDF as a closed-end investment company that offers shares to invest in portfolios of corporate debt papers. An investment company may register as a CDF by completing an application with the SEC.

Subscription to a CDF must be done only on initial public offering and redemption at maturity. A CDF may offer several shares or unit classes managed as separate asset pools but with the same investment objectives.

Unlike in public listings, a CDF is not required to be listed or traded in an exchange. The underlying corporate debt portfolio will follow a hold-to-collect business model, meaning investments are held to the maturity.

CDF shares or units may be issued in tranches once the SEC approves the securities, with the first tranche issued within six months from the date of the approval. The securities must be sold on a cash basis and only by a registered mutual fund distributor and certified investment solicitor.

Proceeds from the issuance of CDF securities must be invested in corporate debts of large corporations and medium-sized enterprises. But pending deployment of CDF according to its investment objectives, it can invest in deposits and money market instruments.

The proposed rules limit the value of a CDF’s investments in corporate debt. If it is issued by a single enterprise, it should not exceed 25% of the funds net asset value and 50% in single group entities. This will be computed based on total proceeds of securities sold within the initial offering period.

Total operating expenses of a CDF is also limited to 10% of its average investment fund or net worth as indicated in its latest audited financial statement.

The draft memorandum circular is accessible through the SEC website. The corporate regulator is accepting comments from stakeholders until July 17 through snail mail and e-mail.

Animation studio’s productivity drops 28% during lockdown

By Jenina P. Ibañez, Reporter

ANIMATION studio Toon City saw an estimated 28% drop in productivity during the quarantine while some artists working from home deal with unstable Internet connection.

Animation Council of the Philippines Inc. (ACPI) President and Toon City Chief Executive Officer Juan Miguel del Rosario in a webinar organized by the Trade department on Wednesday said that the industry saw production delays due to longer upload times and disrupted feedback methods.

The Philippines is an outsourcing hub for animation studios based in the United States.

Citing examples, Mr. Del Rosario said a particular employee saw 12% more output during the quarantine, but another saw a 53% decline due to a lack of stable broadband and equipment in his home.

The data are based on the average weekly output of the top 20 employees, not the entire workforce. Their output puts productivity at 72% during the lockdown, compared with those in January and February 2020.

“Essentially, the reason behind this is work-from-home is still not yet an ideal place as far as we’re concerned,” Mr. Del Rosario said.

“Workplace methods and routines of artists and directors [undergo] rapid change. This is very difficult because before, you can just go to an artist and say ‘pare, nagawa mo na ba ‘yan? (pal, have you done that?)’ Now you have to text or you have to e-mail or you have to wait for the response, so that delay is affecting turnaround time.”

He said that the upload of “enormous” files sometimes takes days.

Mr. Del Rosario in a separate e-mail said most local and foreign studios are at about 70% work-from-home operations.

“The Philippines cannot be competitive with weak internet infrastructure. With those kinds of lagging we cannot afford to host webinars for the global audience. The pandemic has accelerated the need to be digitally and online savvy.”

Mr. Del Rosario explained that the 72% productivity mirrors that of the overall outsourcing industry and is similar to that of the animation industry in other countries during the pandemic.

The company’s output payroll fell significantly in April before seeing slight recovery the next month. Output payroll, which was above P1.7 million on March 20 fell below P380,000 by April 3. This consistently grew again, reaching P1.14 million by June 19.

Looking at opportunities during the lockdown, Mr. Del Rosario said that many animated series continue to be in production under work-from-home operations, including those from Warner Brothers Animation.

He added that marketing companies that previously relied on live-action filming are now open to trying animation. Drama shows, he said, will likely postpone shooting scenes that involve crowds, action sequences, or international travel — increasing animation demand.

Cirtek unit tapped to manufacture 5G-supporting chipsets

A SUBSIDIARY of electronics manufacturer Cirtek Holdings Philippines Corp. (Cirtek) has entered into a multi-million project with a Silicon Valley-based technology company to produce chipsets for fiber optic networks.

In a statement Wednesday, Cirtek said its microwave and millimeter wave manufacturing arm, Cirtek Advanced Technologies and Solutions, Inc. (CATSI), has been tapped to manufacture chipsets that would support fifth generation (5G) networks.

The company will start production as early as the fourth quarter, Cirtek Executive Vice-President and Chief Financial Officer Brian Gregory Liu said. “CATSI is capitalizing its decades of history and experience in specialized Microwave Integrated Circuit assembly and test know-how capabilities…,” he was quoted in the statement as saying.

Cirtek also said its United States-based subsidiary Quintel USA, Inc. is preparing to deploy new antennas to be used for 5G mobile networks.

Quintel received approval to use a frequency band that was previously reserved for use by the US navy, aircraft and satellite applications. The band may now be used commercially to deploy 5G mobile networks without the need for new licenses.

“Quintel is very excited to participate in the nationwide swap out of existing antennas… This comes at an opportune time when the pandemic has forced millions of companies and employees to work from home…,” Cirtek Vice-Chairman and President Jorge Aguilar said in the statement. “Our new antennas are designed to open up 150 MHz (megahertz) of new information highway spectrum to US networks.”

In a separate disclosure to the stock exchange, Cirtek said its board of directors had approved a plan to raise its authorized capital stock by P880 million to P1.74 billion in preparation for future capital raising activities.

The company will increase its authorized common stock to P1.2 billion with 1.2 billion common shares, from P520 million with 520 million common shares, priced at P1 each.

Its authorized preferred B stock will also be increased to P470 million with 470 preferred B shares, from P270 million with 270 million preferred B shares, priced at P1 each.

Shares in Cirtek at the stock exchange shed 71 centavos or 8.48% to close at P7.66 each on Wednesday. — Denise A. Valdez

Milk sachets cause spike in Birch Tree brand preference

DAIRY brand Birch Tree saw the highest growth in brand preference in the Philippines last year due to the demand for its smaller milk sachets, according to a report from Kantar Philippines.

Kantar’s Worldpanel division in the Philippines found In its 2020 Asia Brand Footprint report that the brand reached four million homes in two years after its 33 gram sachets provided an affordable milk alternative to the bigger packs.

The brand focused its sales on sari-sari stores, selling its products to middle and lower income Filipinos that form the majority of family milk shoppers. Birch Tree is manufactured by Century Pacific Food, Inc.

Noodle brand Lucky Me retained its spot as the most preferred brand in the Philippines for the fifth consecutive year in 2019. The report released on Wednesday said that 97.2% of Philippine households bought the product more than 35 times a year.

The rankings are based on a 52-week study between November 2018 to October 2019.

Lucky Me was followed by Nescafé, which reached more than 82% of households, while condiment brand Silver Swan, coffee brand Kopiko, detergent brand Surf, and milk company Bear Brand were in the third to sixth spots.

Coca-Cola jumped to the 9th spot from 17th the previous year after it reformulated and executed an effective stock keeping unit or inventory tracking, Kantar said. The brand reached 73.5% of households.

Hair care product brands Palmolive (ranked 7th), Sunsilk (8th), and Creamsilk (10th) remained at the top.

Kantar Philippines Worldpanel Division General Manager Marie-Anne Lezoraine said that the brands maintained their spots because they constantly adapted their portfolio to new consumer needs, and conveyed this in their communications.

“Price, however, remains an important factor for Filipino shoppers and several of the fastest growing brands have used this lever to gain more shoppers,” she said.

Next to Birch Tree, local laundry detergent Wings is the fastest growing brand in the country after it favored product introductions in Mindanao and Visayas over traditional launch strategies.

“This proved to be a good strategy, as more than 40% of Filipino homes purchase Wings in Visayas, and almost 70% of homes from Mindanao choose Wings as their laundry detergent,” the report said.

Personal care brand Bioderm, detergent brands Calla and Pride, beverage brands Coca-Cola and Royal Tru Orange, food brand Gardenia, diaper brand EQ, and oral care brand Happy also saw high brand preference growth last year.

The Kantar report analyzing brand trends across Asia noted more interest in hygiene, cooking, and baking essential products during the coronavirus disease 2019 (COVID-19) pandemic.

Kantar said these brands made use of the ability to recognize new consumer needs, create more shopping opportunities by making products relevant to consumers, stretch across different categories to attract buyers, create new variants that will attract new targets, and increase accessibility by widening its geographical location. — Jenina P. Ibañez

Serving comfort during a pandemic

IN the months since the first announcement of community quarantine to control the COVID-19 pandemic, our dining and eating patterns have changed considerably. After the pandemic struck, there hardly seemed to be any reason to celebrate — or ways to do it, due to the ban on mass gatherings.

However, life always finds a way, and in the numerous birthdays and anniversaries that have passed in the months since the quarantine measures were imposed, Tarlaquena Catering saw a way forward through the simple but festive fare one tends to look for at birthday parties. The family behind the company, which catered to government agencies and staged private events before the pandemic, cut back on their more luxurious offerings and advertised party trays with familiar flavors: Beef Kare Kare Especial with Tripe, Boneless Chicken Inasal (BBQ), and Pork Tenderloin Salpicao (stir fried meat with lots of garlic). One memorable offering is a Callos a la Madrilena (a tripe stew) sticky from gooey gelatin and collagen, laden with chorizos and spices for flavor.

“Food has always been a source of pride and joy in our family,” said Arkel Mendoza, a third-generation member of the family who is in charge of marketing. According to Mr. Mendoza, his grandmother, Purita Mendoza, founded the business, and a lot of the recipes were passed down to her daughter, Dinna Tolentino. The business is now being managed by the third generation of the family, through Mrs. Tolentino’s daughter, Maria Luisa, and her cousins. For her part, Mrs. Tolentino has opened another venture, In The Mood for Baking, which offers baked goods, including the now-fashionable Burnt Basque Cheesecake, and a Gooey Chocolate Cake (P550 for a pan; heat it in the microwave for about 30 seconds for the chocolate goo to really flow).

Speaking about the safety measures they’ve adopted in the kitchen, Mr. Mendoza said, “We availed of rapid testing and sanitized our kitchen really well. We had to be really careful with the delivery and handling of our food. I guess that’s why the smaller business model worked for this one,” he said in an e-mail.

Speaking of size, Mr. Mendoza also talked about the difference between catering large-scale events — and paring down to fitting a party in a tray for six. “In terms of profit, bigger events bring better revenue,” he admits. However, “The joy in smaller food preparations is the personal touch you can put in your deliveries,” he said. “Also, since the ECQ affected our operations, the number of cooks we employed fit the demand as well. We can’t go [on] full blown [operations] due to sanitary and health precautions.”

It’s interesting to note that in such conflicted times, there’s the search for a tasty and tangible link to simpler times, or the search for reassurance that there had been another world, and we can still get it back.

As Mr. Mendoza said, “Good comfort food brings about hope. Each time you taste something good or you eat a hearty dish, you are reminded of the good and important things.”

Contact Tarlaquena Catering and In The Mood for Baking through their Facebook pages (@TarlaquenaCatering and @InTheMoodForBaking, respectively). — Joseph L. Garcia

Phoenix set to offer P3.5-B debt papers

PHOENIX Petroleum Philippines, Inc. (Phoenix)will be offering the fourth tranche of its P10-billion commercial papers program this month.

The listed independent oil retailer notified the Securities and Exchange Commission (SEC) of its intention to bid as much as P2 billion worth of debt papers with an oversubscription option of up to P1.5 billion.

The 360-day promissory notes, which may have a 5% annual discount rate, is seen to yield P3.28 billion in proceeds, which the company is likely to use to procure imported fuels and lubricants.

Phoenix will offer the commercial papers from July 21 to 23 and will list them at the Philippine Dealing & Exchange Corp. on July 29.

The terms of the latest debt papers series are yet to be finalized before the issue period.

Meanwhile, the Philippine Ratings Services Corp. will update its outlook and ratings for the notes.

Phoenix has tapped PNB Capital and Investment Corp. as sole issue manager and underwriter of the papers and Philippine National Bank Trust Banking Group as its trustee.

The company’s commercial papers program started in 2018. It issued P7 billion in the first series on Dec. 27, 2018. — Adam J. Ang

A lazy escape to Portugal is what we all could use right now

By Chadner Navarro, Bloomberg

At the moment, many of our plans are still on hold. But that doesn’t mean we here at Bloomberg Pursuits aren’t planning the experiences we’ll rush out to enjoy when it’s safe to do so. We’re sharing our ideas with you in the hopes that they will help inspire you. In today’s dispatch, travel writer Chadner Navarro dreams about the perfect itinerary for continuing his long-running European love affair.

Portugal is my second home. I’ve visited more than 20 times over the past dozen years. As the single destination that helped me realize my career in travel journalism, the country has become synonymous with my own personal and professional identity. If I’m not planning a trip for myself, I’m planning for my friends. Portugal is always on my mind.

As a local resident once told me, the country is full of amazing things: historic sights, fantastic wines, great landscapes, killer shopping. One thing it lacks, she said — a decade ago — is good marketing. That was then. Even as the country has evolved into a bona fide tourism hotspot, its residents remain humble salespeople. Their style of hospitality is warm and modest, tied more to an eagerness to share their traditions than to any capitalist desire.

In Portugal, shopkeepers and chefs rarely sing the praises of their products until you do; this might be why I can comfortably say that I don’t really care for port or pastel de nata, two of Portugal’s most famous treats. “Está bem,” they would say, handing me more arroz de tomate and red wine.

Since returning from my last trip to Lisbon on March 12, just before lockdown hit, I haven’t left the one mile-radius surrounding my home in Jersey City, NJ. My favorite place has reopened its borders — flights from Newark resumed on June 4 — and Portugal has curbed the spread of COVID-19 better than many of its western European neighbors, with about 43,000 confirmed cases and 1,600 fatalities. But non-essential American travelers are still not allowed into the EU, leaving me waiting, seemingly indefinitely, for that next trip.

But I’m still daydreaming. Not just about the freedom of travel, but of Portugal’s countless iterations of rice dishes, walls covered in hand-painted ceramic tiles, and the melancholic melodies of fado. On my 22nd visit there, I’ll visit the following places that merit exploration, even by first-timers.

LIVING LIKE A LISBOETA
The easiest way to get into or out of Portugal is via Lisbon, a city worth revisiting frequently, given how quickly it’s been growing. There’s always something new to see or taste, but the next time I’m in town, I want to reacquaint with some recent favorites that have been stuck in my mind.

First up, a sunny lunch at BAHR, the fine-dining rooftop restaurant at the sophisticated Bairro Alto Hotel. Its chef, Nuno Mendes, is the most recent in a spate of talented Portuguese cooks making exciting homecomings after years of working in top international kitchens. (Mendes helmed London’s glossy Chiltern Firehouse.) At BAHR, he focuses on local ingredients he probably missed while abroad, such as saltwater-boiled goose barnacles — a local delicacy — that he smokes on a yakitori grill and piles onto sourdough for a twist on the traditional dish called percebes toast. Topped with a squirt of lemon and served alongside a glass of Malvarinto, a blend of native malvasia and arinto grapes made by BAHR’s sommelier, it’s a Portuguese seaside fantasy brought to life.

The best days in Lisbon can be spent aimlessly walking up and down its steep hills — ideally, in sturdy boots that help navigate the city’s slippery cobblestones. It’s a great workout. I’d explore the western side of the city center, where trendy neighborhoods São Bento and Principe Real are both walkable, with plenty of new shops to see. On my list: the minimalist cafe Hello, Kristof for espresso and indie magazines; Nannarella, for gelato laced with such local ingredients as Algarve salt or tart ginja liquer; and Embaixada, a neo-Moorish building transformed into a constantly evolving shopping emporium.

By early evening, I’ll join the crowd of locals and foreigners that buzz around MAAT, a multidisciplinary riverside museum that opened in 2016. Its outdoor spaces are a people-watching haven, filled with done-for-the-day cyclists or friends clinking beers. For dinner, it’s O Frade in Belem, a modest, counter-seating-only eatery that’s possibly my favorite restaurant in town. I keep returning for its addictive, razor-thin, lemon zest-topped slices of pork lard and the bowls of chickpeas tossed with chopped squid, garlicky broth, and tons of cilantro.

SLOWING DOWN IN ALENTEJO
“Everything and everyone moves slowly in the Alentejo,” my friend Diana told me the first time I went there. Portugal’s largest region — 12,182 square miles of land bounded by Lisbon and the Algarve — has since become my favorite, probably thanks to those languid vibes. Tall buildings seem to have been outlawed here. Meandering roads are endlessly lined with half-naked cork oaks, ancient olive trees, and rolling vineyards of green and gold. Along coastal routes, the Atlantic Ocean pounds away at the cliff sides. Sure, the Alentejo lifestyle might allow you to catch your breath, but the landscapes will take it away.

So will the hotels, which are among the best in the country. Though it’s barely two-years-old, the standard-setter may be Da Licença, formerly a hilltop farm in a forgotten corner of Estremoz, a historic city known for its marble. Now a quiet, eight-room refuge, Da Licença is filled with arts and crafts furniture and decor amassed by owners Vitor Borges and Franck Laigneau.

Closer to the coast, there’s Craveiral, a collection of cozy farmstead casas outfitted with blonde wood furniture, cork headboards, and macrame wall accents. As the country was beginning to peek out of its lockdown, the hotel announced a culinary partnership with Alexandre Silva, one of Lisbon’s best chefs. His new restaurant there puts the spotlight on ingredients grown onsite, many of them grilled or cooked in a wood-fire oven.

From either spot, it’s easy to rent a car and drive among Alentejo’s quaint villages. The medieval hilltop hamlet of Monsaraz, nestled up against the Spanish border, tops my list for the still-active bullring adjacent to its stone-walled castle. I would also stop into Mizette, a shop owned by a textile artist who produces colorful blankets and rugs on a traditional loom — one of few remaining in Europe. I might snap up a fringed scarf; Alentejano evenings can get quite chilly.

Then, it’s dinner at Mercearia Gadanha, which first opened in Estremoz as a gourmet grocery shop in 2009 before chef Michele Marques added a dining room in 2013. It’s a quirky space with mismatched chairs and exposed wood beams, serving whimsical platings of rustic dishes such as pig trotter terrine.

The Alentejo’s roads are well-maintained and mostly bare, making it easy to get around. But if wineries are your priority — there are so many worth visiting — Uncovr plans excellent weeklong explorations of the area, complete with a driver. Its group trips include such lazy, yet jaw-dropping experiences as hot-air balloon rides, stargazing in a dark sky reserve, and horseback riding, from $5,050 per person.

Uncovr’s founder Jason Wertz was the person who introduced me to a character I need to meet again on my next trip: Jorge Rodrigues, the artisan winemaker behind Herdade Outeiros Altos, an incredibly hard-to-find winery just outside Estremoz. His secret is to use massive clay vessels (called talha) to make vinhos, honoring a local winemaking tradition that started 2,000 years ago.

When I visited last year, Rodrigues and his wife greeted me with a beautiful outdoor lunch of hearty salads and slices of chouriço paired with their wines. It’s as emblematic an experience as I can conjure of Alentejo, where time seems to slow down in the presence of great company, great food, and great wine.

Cebu Landmasters posts 41% sales boost in first half

CEBU Landmasters, Inc. (CLI) recorded a 41% increase in sales during the first half of 2020 on the back of high demand for affordable housing despite the coronavirus disease 2019 (COVID-19) pandemic.

In a statement Wednesday, the property developer said its sales reached P7.43 billion in the six months to June, mostly coming from residential developments in key cities in Visayas and Mindanao.

Projects located in Cebu City took up 40% of the sales, despite the area being under a strict lockdown due to the high number of COVID-19 cases. Those in Iloilo City accounted for 23% of sales, in Cagayan de Oro for 19%, in Bacolod for 10% and in Bohol for 8%.

The company said it attributes the sales growth to the increased importance put on housing in the fight against COVID-19. “The pandemic has heightened the realization that good housing means good health,” CLI Chairman and CEO Jose R. Soberano III said in the statement.

To ride on the increased demand, Mr. Soberano said CLI offered stretched payment terms and promos to help buyers afford the company’s homes. “Market response has been overwhelming and we are now speeding up plans to offer our flagship Casa Mira residential brand to more VisMin cities,” he said.

CLI said the economic and mid-market residential units were recording high sales velocity even before the COVID-19 pandemic. Economic housing brand Casa Mira took up 65% of sales during the two quarters, while those targeted to mid-market buyers accounted for 26%.

The company also noted a shift in its types of customers over the period. Overseas Filipino workers used to make up 40% of its buyers in end-2019, but fell to 20% in the second quarter. This means local buyers propelled CLI’s sales during the six-month period.

“Our buyers today are mostly end-users who realized the importance of owning their own homes during the start of the lockdown period. COVID-19 seem to be prompting them to realign priorities…,” CLI Vice-President for Sales Marie Rose C. Yulo said in the statement.

CLI’s goal is to launch P19.4-billion worth of projects this year, totaling 14 new projects by end 2020, which are targeted to economic and mid-market buyers. It is setting aside around P10 billion for capital expenditures this year.

Shares in CLI at the stock exchange gained six centavos or 1.18% to close at P5.14 each on Wednesday. — Denise A. Valdez

US now probing allegations that TikTok violated children’s privacy

WASHINGTON — The Federal Trade Commission (FTC) and the US Justice Department are looking into allegations that popular app TikTok failed to live up to a 2019 agreement aimed at protecting children’s privacy, according to two people interviewed by the agencies.

The development is the latest bump in the road for the short video company, which is popular with teens. TikTok has seen scrutiny, including from the national security-focused Committee on Foreign Investment in the United States, rise sharply because of its Chinese parent corporation.

US Secretary of State Mike Pompeo said on Monday that the United States is “certainly looking at” banning TikTok, suggesting it shared information with the Chinese government, a charge it denied.

A staffer in a Massachusetts tech policy group and another source said they took part in separate conference calls with FTC and Justice Department officials to discuss accusations that TikTok had failed to live up to an agreement announced in February 2019.

The Center for Digital Democracy, Campaign for a Commercial-Free Childhood and others in May asked the FTC look into their allegations TikTok failed to delete videos and personal information about users age 13 and younger as it had agreed to do, among other violations.

A TikTok spokesman said they take “safety seriously for all our users,” adding that in the United States they “accommodate users under 13 in a limited app experience that introduces additional safety and privacy protections designed specifically for a younger audience.”

Officials from both the FTC, which reached the original consent agreement with TikTok, and the Justice Department, which often files court documents for the FTC, met via video with representatives of the groups to discuss the matter, said David Monahan, a campaign manager with the Campaign for a Commercial-Free Childhood.

“I got the sense from our conversation that they are looking into the assertions that we raised in our complaint,” Mr. Monahan said.

A second person, speaking privately, confirmed that advocates had met with officials from the two agencies to discuss concerns TikTok violated the consent decree.

The FTC declined to comment. The Justice Department had no immediate comment.

TikTok has grown increasingly popular among US teenagers and allows users to create short videos. About 60% of TikTok’s 26.5 million monthly active users in the United States are aged 16 to 24, the company said last year.

US lawmakers have also raised national security concerns over TikTok’s handling of user data, saying they were worried about Chinese laws requiring domestic companies to support and cooperate with the Chinese Communist Party.

TikTok, owned by parent company ByteDance, is one of several China-based firms that have had to navigate heightened US-China tensions over trade, technology and the COVID-19 (coronavirus disease 2019) pandemic.

Under intense US regulatory scrutiny, it has poached Disney’s Kevin Mayer to be its chief executive and is trying to project a more global image, with offices in California, Singapore and elsewhere. — Reuters

Indonesia imposes 10% value-added tax on Amazon, Google, Netflix and Spotify

JAKARTA — Indonesia imposed a 10% value-added tax (VAT) on sales by technology firms including Amazon, Netflix, Spotify and Google on Tuesday, as spending patterns shift with increased remote working as a result of the coronavirus crisis, which has hit state finances.

The Southeast Asian country’s tax office said in a statement that it had already assigned tax identification numbers to Amazon Web Services, Netflix, Spotify and Alphabet’s Google for its Google Asia Pacific, Google Ireland, and Google LLC units.

Indonesia, the world’s fourth most populous country with a population of nearly 270 million, is experiencing a boom in its digital economy which is expected to reach $130 billion by 2025, a study by Google, Temasek Holdings and Bain & Company predicts.

It expects a 13% yearly drop in state revenue this year as the pandemic hits business activity, which combined with nearly $50 billion for the fight against the coronavirus is forecast to more than triple its 2020 budget deficit.

Under the new rules, non-resident foreign firms which sell digital products and services in Indonesia worth at least 600 million rupiah ($41,667) a year or which generate yearly traffic from at least 12,000 users will be required to pay the 10% VAT.

“The tax office will continue to communicate with relevant businesses abroad… the number of companies assigned to apply VAT for digital products will likely increase,” tax office spokesman Hestu Yoga Saksama said.

A Netflix spokesman told Reuters that it would comply.

“It is for governments to decide the rules on VAT and in every country we operate, Netflix respects those rules.”

Amazon Web Services, Google, and Spotify did not immediately respond to requests for comment.

The United States Trade Representative office has launched an investigation into Indonesia and other countries for adopting or considering Digital Services Taxes, but Indonesian Finance Minister Sri Muyani Indrawati said the VAT move was not part of this. — Reuters

Vista Land taps banks for dollar notes offering

VISTA LAND & Lifescapes, Inc. (VLL) has mandated banks to arrange a dollar-denominated bond offering to refinance its existing loans that are due in two years.

In a disclosure to the exchange on Wednesday, the Villar-led property developer said it is planning to issue fixed-rate dollar notes through a drawdown from the medium-term note (MTN) program of its wholly owned subsidiary VLL International, Inc.

VLL tapped DBS Bank Ltd. and HSBC as joint global coordinators, joint lead managers and joint bookrunners, and Credit Suisse as joint lead manager and joint bookrunner for the offering.

The banks were ordered to arrange a series of fixed income investor calls on Wednesday.

The planned offering will involve Regulation S only, dollar-denominated senior unsecured guaranteed notes. A Regulation S offering means the securities are executed in countries outside the United States.

Once finalized, the notes will be issued by VLL International and will be unconditionally and irrevocably guaranteed by VLL and certain VLL subsidiaries.

Proceeds from the issuance will be used to refinance VLL’s existing notes that are due in 2022 through a tender offer and consent solicitation subject to market conditions.

In the first quarter, VLL’s earnings fell 8% to P2.34 billion due to a decline in project completions as Luzon was placed under a lockdown. The suspension of construction activities due to the coronavirus outbreak led to a 3% revenue drop to P9.93 billion.

Shares in VLL at the stock exchange ended flat on Wednesday at P3.90 each. — Denise A. Valdez

Doing Good (07/09/20)

LOCKDOWN restrictions in the country have mostly loosened up in preparation for the “new normal,” even as cases continue to surge because of the looser restrictions and expanded testing capacity, say government officials. This means that the battle against the pandemic is a long way from being over. Here is another set of companies and organizations who continue to give a helping hand.

FOOD PANDA
Food delivery service Food Panda celebrated its sixth anniversary by donating grocery packages to local communities in the cities of Makati, Taguig, Quezon, Cebu, and Davao. The grocery packs, delivered by Food Panda’s fleet with the help of the Philippine Army and local government officials, were given to emergency team responders, quarantine center personnel, garbage collectors, and street sweepers.

The company also previously delivered food packs to healthcare institutions during the stricter lockdown period.

“Being on the frontlines of this pandemic and operating through ECQ and GCQ has opened our eyes to the plight of our fellow frontliners. Just as we value our riders who brave the streets every day, we wanted to show our appreciation for our quarantine center staff, garbage collectors and street sweepers who are literally keeping the country together. At a time like this, we, at foodpanda, believe it’s important to celebrate a milestone such as a 6th anniversary by sharing our blessings to these heroes,” said Daniel Marogy, Food Panda Philippines managing director, in a statement.

DE LA SALLE COLLEGE OF ST. BENILDE
More than 150 students, alumni, professors, and staff from the Industrial Design program of the De La Salle College of St. Benilde managed to create and donate almost 11,500 face shields, 1,500 face masks, 810 3D-printed ear guards, among many other protective equipment, to 126 beneficiaries including policemen, hospital personnel, and personnel in pharmacies and other health facilities across Metro Manila and Central Luzon, Calbarzon, Mimaropa, the Bicol region, and the Davao region.

The group raised almost P250,000 to produce the protective equipment while several other Benilde programs such as the School of Design and Arts helped with production and logistics.

“Industrial Design is silent, often a discipline that does not take the spotlight, but is a major component in mankind for it to function at ease. We have to show our united support, much more so in these challenging times, in championing an industry that is key in solving the problems of society through form and function,” said Romeo Catap Jr., Benilde Industrial chairperson, in a statement.

ARANETA CITY
The J. Amado Araneta Foundation of Araneta City has donated to the Quezon City government enough COVID-19 rRT-PCR test kits to test 500 samples. The test kits, which were developed by the University of the Philippines-National Institutes of Health, will be used by the Quezon City General Hospital.

“We value the health and safety of the entire community. In these health-challenging times, being responsive, aside from being prepared, is highly important. We are talking about saving lives here, and donation of test kits is the least Araneta City can do to help. This is our way of showing our cooperation to the government in this time of crisis,” said Antonio T. Mardo, SVP for operations at Araneta City, in a statement.

AYALA MALLS
Ayala Malls has partnered with Life Cycles PH, a charitable organization created in response to the shutdown of public transportation, which provides bicycles for free to frontliners, as a way to get to their jobs. Ayala Mall’s UP Town Center has donated more than 20 bicycles for frontliners. Those who want to get a bicycle must present a company ID for verification and monitoring at the Life Cycle station near Mercury Drug at the UP Town Center.

PLDT-SMART
The PLDT-Smart Foundation has donated more than 300 food packs to families of the Yakan Tribe, a Muslim community residing in Tandang Sora, Quezon City. The foundation also provided relief assistance to 600 displaced construction workers located in the University of the Philippines Diliman.

The donations were from an employee-initiated fundraising campaign for frontliners and communities affected by the pandemic and the Your 200 Pesos project which aims to feed families affected by the pandemic. The donation drive was done in partnership with the Department of Social Welfare and Development and the University of the Philippines Office of the Vice-Chancellor for Planning and Development.

1...7,7477,7487,749...12,644Page 7,748 of 12,644
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube