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Metrobank, GT Capital Holdings donate P15.2M worth of PPEs to 13 hospitals

To continuously provide support to healthcare frontliners to combat COVID-19, the Ty family-led companies Metrobank and GT Capital Holdings Inc., through the Metrobank Foundation, Inc. (MBFI) and GT Foundation, Inc. (GTFI), donated P15.25 million worth of Personal Protective Equipment (PPE) to benefit thirteen (13) hospitals in Metro Manila, Cavite and Cagayan de Oro.

The PPE sets consisting of hazardous material suits, face shields, N95 masks, gloves, and shoe covers will be distributed to select hospitals treating a high number of confirmed COVID-19 cases These are: Dr Jose Rodriguez Memorial Hospital (Caloocan City); Ospital ng Maynila Medical Center (City of Manila); Ospital ng Makati (Makati City); National Center for Mental Health, (Mandaluyong City); Research Institute for Tropical Medicine (Muntinlupa City); San Juan de Dios Hospital (Pasay City); East Avenue Medical Center, Philippine Heart Center, Philippine National Police (PNP) General Hospital, Victoriano Luna General Hospital and Veterans Memorial Medical Center (all in Quezon City); General Emilio Aguinaldo Hospital (Trece Martires, Cavite); and Northern Mindanao Medical Center (Cagayan de Oro City). A total of 12,000 sets of PPEs will be distributed to the hospitals.

An initial P5.07 million worth of PPEs were turned over to the Manila Doctors Hospital, the healthcare arm of MBFI, and another P5.07 million to the Philippine General Hospital, Lung Center of the Philippines, and six (6) District Hospitals in the City of Manila. Likewise, the Armed Forces of the Philippines (APF) and the Philippine National Police (PNP) received additional masks and gloves amounting to P1.84 million for the use of their frontliners.

The donation is part of the P200 million pledge by Metrobank and GT Capital Holdings Group in support of the efforts to combat COVID-19. Other social  good  initiatives  of  the  Group  include: food packages for underprivileged families, provision of testing kits and medical supplies, and the set-up of a molecular laboratory for testing.

 

 

DOST submits proposal for virology institute

COVID-19 was nowhere near the first virus to upend our world, and it will very likely not be the last. From influenza to HIV to dengue, mankind has long grappled with the devastation of viruses, actively studying these public health threats to keep outbreaks at bay.

In the midst of the current pandemic, the Department of Science and Technology (DOST) has submitted a proposal for the establishment of the Virology Science and Technology Institute of the Philippines (VIP). Announced by DOST Secretary Fortunato de la Peña in a May 22 Facebook post, it is envisioned to be the premier research institute in the field of virology, encompassing all areas in viruses and viral diseases in humans, plants, and animals.

A lab for ground-breaking research

The institute will “conduct innovative scientific research on viral agents requiring high or maximum containment (biosafety level-2 to biosafety level-4) following the World Health Organization’s guidelines on the establishment of a virology laboratory in developing countries. Research studies on viral agents will focus on vector/reservoir transmission, viral ecology, clinical virology, pathogenesis, pathophysiology, and host immune response to these viral pathogens.”

In the same post, the Sec. de la Peña said that the institute may explore the fields of:

  • enteric infections,
  • respiratory infections,
  • central nervous system infections,
  • viral infections in the immunocompromised host,
  • antiviral and antimicrobial resistance,
  • viral diversity,
  • plant pathology,
  • plant–virus interactions,
  • and major plant viruses.

The establishment of this institution may help develop our nation’s capacity to contribute to global efforts such as the development of a vaccine to viruses such as COVID-19. Currently, there are no local efforts to create such a vaccine due to the lack of proper facilities and resources.

“The development of vaccines requires very good research on viruses, particularly those that are circulating in our environment,” said Secretary de la Peña. “This will also require the establishment of a virus high containment laboratory for the study of viruses.”

The necessity for preparedness

VIP will be a space for scientists to collaborate and study viruses that are crucial in the agricultural, industrial, clinical, and environmental spheres.

“We have to be prepared because pandemics, such as what we are experiencing now, can occur again in the future,” said Secretary de la Peña in a May 26 interview with CNN Philippines’ New Day. “I think it is not only the vaccines that we have to pay attention to; it is also diagnostics as well as the therapeutics that will be needed.” 

“May I just add that when we talk of the viruses, it is not just those that attack humans but also those of animals,” he said. “For example, we have the problem of the African Swine Fever and the viruses that attack our important crops like abaca, papaya, mango, banana, etc., so this is very important.”

The Philippines is currently seeking to collaborate with institutions in China and Chinese-Taipei (Taiwan) in the creation of a COVID-19 vaccine. “So we communicated with them and we are in the process preparing what is needed to execute the collaboration,” the Secretary shared.

Through other such strategic partnerships, the hope is for VIP to be a venue for pioneering virology research advancing the frontiers of virology in the country.

A conversation about performing arts during COVID-19

By Hannah Mallorca
Features Writer, The Philippine STAR

The online streaming of Ang Huling El Bimbo: The Musical last May 8 and 9 became a trending topic in social media as netizens discussed its story and theater’s role in Filipino culture, among others.

Set to the music of the band Eraserheads, the musical talks about nostalgia and how the past shapes a person’s character in the present. The story focuses on the relationship between Joy, Hector, Anthony and Emman through a series of flashbacks.

With this, The Philippine STAR’s CareerGuide talked about the effects of quarantine on the performing arts industry and its future. The online discussion featured actor Gian Magdangal, Full House Theater company co-artistic directors Michael Williams and Menchu Lauchengco Yulo, and Ang Huling El Bimbo director and choreographer Dexter Santos.

Working in the industry

Maintaining a proper balance between two jobs is a daunting task. Despite this, Mr. Magdangal said that working as an actor and a corporate employee helps in managing himself effectively.

“As an actor, you are your business. If you’re purposeful in doing it and you know what you want to do, it’s inevitable that income will just come in. You have to have faith in yourself and the industry no matter what you do,” he shared.

Looking back, Ms. Yulo admitted that she was lacking when she started out in the performing arts industry. She was able to develop her skills and knowledge through her experiences, both onstage and backstage.

“It was really a baptism of fire and you learn by making mistakes on stage, picking yourself up and just going forward. That’s how we learned. That’s many, many years of mistakes, falling flat on your face, and just learning from the experience,” she added.

Meanwhile, working in the industry made Mr. Williams realize that the camaraderie between performing artists and staff transcends their differences. Even if he’s passionate about his craft, he advised aspiring artists to weigh their decisions before joining the industry.

“It’s not about passion or the economy. It’s about developing yourself, which means choosing work that would develop yourself and what you’ll learn. You need to decide if it gives you artistic or financial value, or if it would boost your career,” Mr. Williams said.

Coping with the pandemic

The future of post-coronavirus disease 2019 (COVID-19) society remains uncertain. However, Mr. Williams emphasized that the performing arts industry will survive since it braved through medical disasters in the past.

According to Mr. Williams, creating content, streaming theater performances and conducting online fundraising activities have helped the industry move forward.

“We didn’t actually stop working. The industry’s shakers and movers had conversations on how to go through the changing times,” he said. “We’ve also been reaching out to government agencies to find out ways to help with the economy and why the industry deserves the relief that others are receiving.”

Ms. Yulo admitted that the overwhelming response of Ang Huling El Bimbo streaming was unexpected since it was originally filmed as an archive. For her, it was an opportunity for the industry to reach out to various audiences.

“The COVID-19 pandemic gave us the thinking that we can stream Ang Huling El Bimbo, resulting in more people appreciating theater. I’m hoping that if we continue streaming stage performances, it can make people come and watch it live in the future,” she added.

How the industry survives

Despite the convenience of streaming, Mr. Santos admitted that the performing arts industry needs to wait before rehearsals, stage productions and performances can resume.

“We really can’t push things since it’s hard to gamble. Personally, I don’t want to sacrifice the safety of my actors and audience because we need to survive,” he said. “Whatever the artist can do online is the least that we can do.”

Despite this, Mr. Santos stressed that the industry would remain despite the pandemic.

“It may not be the same experience as before but reading a play, creating theater-related content or streaming performances makes the industry alive. During this time, I think it’s important to raise a certain awareness about the industry,” he said.

Mr. Santos stated that the artists’ innate ability to create keeps the industry afloat. “What makes theater alive is that it’s natural for an artist to express himself. This is why we have various online content, readings and streaming — these are ideas we have to keep it alive.”

Even if Ang Huling El Bimbo’s story ended in tragedy, it sparked the importance of performing arts in Filipino culture. It might take a while for the industry to resume rehearsals, productions and live performances but the power of creativity will remain timeless.

 

For more information about employment, job openings and advertising options, visit CareerGuide PH on Facebook and LinkedIn.

Mounting an effective COVID-19 response

By Argie C. Aguja
Senior Features Writer, The Philippine STAR

Wealthier Western countries with vast resources are struggling to contain the coronavirus. In contrast, smaller Southeast Asian nations with limited means have shown initial success in the battle against COVID-19

As of May 27, statistics concerning the coronavirus disease 2019 (COVID-19) pandemic have been bleak, reaching 5,591,067 cases; 2,287,152 recoveries; and 350,458 deaths globally (source: https://news.google.com/covid19/map). While pharmaceutical companies and bio labs all over the world have been working to come up with a miracle drug, experts caution that the numbers will continue to rise well into the near future unless an effective cure or a vaccine is found.

A quick look at data show that first world countries registered some of the highest COVID-19 infections globally, led by the United States (1,716,155), followed by Brazil (392,360), Russia in third (370,680), United Kingdom in fourth (265,227), Spain in the fifth place (236,529), Italy in sixth (230,555) and Germany at the seventh spot (181,288). Despite having greater resources for testing, medical care and bailouts, even the US and Europe struggled to curb the spread of the virus, casting doubts on the Western countries’ ability to contain the outbreak in their respective territories.

In Southeast Asia, four developing nations have achieved initial success in handling the coronavirus crisis within their shores ⁠— even with limited means in terms of medical facilities, available funds, and smaller economies. Here are some of our Southeast Asian neighbors who have made early, yet significant achievements in their campaigns against COVID-19:

Vietnam

As one of the few countries sharing a land border with China, Vietnam acted quickly to shield itself from the spread of the coronavirus, suspending all flights from the mainland on Feb. 1, and then all international air travel by March 25. It also suspended all issued visas to foreigners. Mandatory isolation measures were imposed on all citizens with a history of foreign travel, and related contacts with symptoms. The government also ramped up its already aggressive contact tracing and testing protocols, initiated mass quarantines in villages with confirmed cases, and the immediately mobilized all state agencies. The public is also advised to always wear masks and avoid large gatherings. These early actions have reaped benefits for Vietnam, as the country lifted social isolation measures by April 22, leading to re-opening schools and business, and reviving its weakened but resilient economy. As of May 27, Vietnam has 327 confirmed cases, 272 recoveries and zero deaths.

Cambodia

Since Cambodia reported its first COVID-19 case on Jan. 27, authorities were quick to ramp up isolation measures for symptomatic individuals. By March, Cambodia barred the entry of foreigners from Italy, Germany, Spain, France, the United States and Iran, suspended classes in all schools and closed down all of its borders. When 40,000 Cambodian workers went home, they were all ordered to undergo self-quarantine and observe preventive measures. Travels between cities and across provinces were banned. For more than a month, only a single case was reported and no new outbreaks were recorded. As of May 27, Cambodia has 124 confirmed cases, 122 recoveries and zero deaths.

East Timor

As early as February, East Timor restricted the entry of non-nationals with a history of travel to Hubei, China within the past four weeks. As a preventive measure, the country also closed its borders with Indonesia. When East Timor registered its first confirmed COVID-19 case on March 22, the Catholic Church cancelled mass. A state of emergency was declared, and public gatherings were limited to five people. All international arrivals were ordered to undergo a mandatory 14-day quarantine. On April 6, the parliament approved urgent measures to deal with the pandemic. As of May 27, East Timor has 24 confirmed cases, 24 recoveries and zero deaths.

Brunei

After the first COVID-19 case was reported in Brunei on March 9, the government was quick to trace and isolate all known contacts of recorded positive cases. Once identified, efforts were focused on treating the patients at the National Isolation Centre (NIC) in Tutong. Avoiding a lockdown, the government instead ordered a travel ban, restrictions on public gatherings, and asked people to consider working from home, while the Ministry of Health (MoH) issued daily updates and assured citizens of the developing situation. To lessen the economic impact, the government mandated banks to defer loan payments for businesses. It also ordered employers to give paid sick leaves to staff, and even created a fund to give wage subsidies to private sector employees. The national tally of cases stood still, marking the 20th consecutive day without new cases since May 7. As of May 27, Brunei has 141 confirmed cases, 137 recoveries and one death.

National government fiscal performance (April 2020)

THE national government’s budget balance swung to a deficit in April from a year-ago amid weak tax collections and a surge in state spending for emergency subsidy programs for Filipinos affected by the lockdown, the Bureau of the Treasury (BTr) reported on Wednesday. Read the full story.

National government fiscal performance (April 2020)

Budget swings to deficit in April

By Beatrice M. Laforga
Reporter

THE national government’s budget balance swung to a deficit in April from a year-ago amid weak tax collections and a surge in state spending for emergency subsidy programs for Filipinos affected by the lockdown, the Bureau of the Treasury (BTr) reported on Wednesday.

The BTr’s cash operations report showed the budget deficit stood at P273.9 billion in April, a turnaround from P86.9-billion surplus recorded in the same month last year and bigger than the P59.5-billion gap in March.

Government spending more than doubled to P461.7 billion last month, from P221.8 billion spent in April 2019.

The Treasury attributed the increase to the release of the first tranche of the P200-billion Social Amelioration Program and the P50-billion wage subsidy program, rehabilitation measures, as well as the disbursement of the P36-billion “Bayanihan Grant” to provinces, cities and municipalities affected by the coronavirus pandemic

Primary expenditures or spending net of interest payments stood at P439.8 billion in April, rising 121.81% from P198.3 billion a year ago.

Interest payments (IP) declined by 7% to P21.9 billion in April from P23.5 billion “due to high base effect from April 2019 IP and maturities.”

At the same time, government revenues fell by 39.17% to P187.8 billion in April from P308.7 billion in the same month in 2019, as tax collection plunged due to the postponement of filing and payment deadlines amid the lockdown.

Tax collections, which accounted for 67% of the total, slumped 56.74% to P124.9 billion in April, while non-tax revenues rose 215% to P62.8 billion.

Collections of the Bureau of Internal Revenue (BIR) dropped 61.56% to P90.5 billion in April from P235.5 billion a year ago on deferment of deadlines for income tax payment and filing of other returns.

Finance Undersecretary and Chief Economist Gil S. Beltran in a briefing said excise taxes collected from alcohol and tobacco products plummeted by 99.1% to P200 million in April from P18.1 billion collected in the same month last year.

Only P100 million in excise taxes were collected from tobacco products, while P20 million in taxes were collected from alcoholic drink products, as the lockdown and liquor ban hurt consumer demand.

On the other hand, Bureau of Customs (BoC) collections slid 33.38% to P34.4 billion last month on weak collections and a drastic drop in oil prices. Other revenue-generating offices did not collect any taxes in April, against the P1.7 billion a year ago.

For the non-tax revenues, BTr generated P52.8 billion, 405% higher year on year as state-owned firms remitted their dividends and other income. Income of other offices inched up 6.61% to P10.1 billion.

DEFICIT WIDENS
In January to April, the government’s budget deficit ballooned to P347.9 billion compared with the P3.4-billion gap recorded in the same four-month period last year.

April’s spending surge pushed overall expenditures to reach P1.311 trillion in January-April, up 31.12% from the roughly P1 trillion spent the year prior.

Of which, primary spending increased 34.62% to hit P1.17 trillion in the four-month period, while interest payments went up by eight percent to P141.8 billion.

State revenues were still down by 3.36% to P963 billion for the January to April period, with tax revenues slipping 18% year on year to P745.8 billion while non-tax soared by 137% to P217.2 billion

Collections of BIR slumped year to date by 20.52% to P559 billion, while Customs’ revenues slid 7.13% to P179.7 billion. Sin tax collections also dropped 57.1% to P30.6 billion.

Treasury’s revenues tripled to P164 billion in January-April, while revenues from other offices reached P53.2 billion, up 5.78% year on year.

Alvin P. Ang, an economics professor at Ateneo de Manila University, said the budget deficit in April “is expected” due to higher spending and lower tax haul.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said collections by the country’s two largest revenue-generating bodies were “all but nonexistent,” while spending continued to surge as the government sought to contain the fallout from the pandemic.

“Cash outlays, subsidies and expenditures related to healthcare needs pushed spending to bloat and we hope the government continues to throw a lifeline to the now anemic economy until it can get back on its feet,” Mr. Mapa said in a note published Wednesday.

Moving forward, Mr. Ang said the budget deficit will continue to balloon in the coming months, with the economic team projecting it could reach 8.1% of gross domestic product by yearend.

Mr. Mapa said the government should resist going into “austerity mode to ensure that the economic hardship is minimized so that we can get the economy back in form at the soonest.”

“Substantial and targeted spending can also translate to a faster pickup in GDP, which would help limit the widening of the budget deficit-to-GDP ratio as growth outpaces the increase in spending,” he said.

HSBC Economist Noelan Arbis said the country has been “exemplary in keeping a sound fiscal position” but the coronavirus pandemic might push it “into a different direction” in the coming years, with fiscal deficit expected to only decline to six percent of GDP in 2021.

“By our estimates, the Philippines’ fiscal deficit is also unlikely to decline back to its pre-pandemic levels (i.e. 3.2% of GDP), even after the current administration’s term in office ends in 2022,” Mr. Arbis said in a note yesterday.

National government fiscal performance (April 2020)

FDI inflows rise in Jan.

By Luz Wendy T. Noble
Reporter

NET INFLOWS of foreign direct investments (FDI) grew by 12% in January from a year ago, a trend that economists said is unlikely to be sustained as the coronavirus crisis continues.

Data from the Bangko Sentral ng Pilipinas (BSP) showed FDI inflows in January rose by 12.1% to $657.1 million from the $586 million recorded a year ago.

“This development, which was before the imposition of the community quarantine in the country (in mid-March) due to COVID-19 (coronavirus disease 2019), reflects continued investor confidence in the Philippine economy, despite global economic uncertainties,” the BSP said in a statement on Monday.

However, January’s FDI inflows tumbled 42.98% from the $1.153 billion logged in December. The January inflows were also the lowest since the $623 million worth of FDIs logged in November.

The central bank in November projected FDI inflows to hit $8.8 billion in 2020.

In 2019, FDI net inflows dropped by 23.1% to $7.647 billion from the $9.9 billion recorded in 2018.

According to the BSP, net investments in debt instruments which include intercompany borrowings during the month sank by 57.9% to $233 million from the $553 million in January 2019.

Reinvestment of earnings also slipped by 5.1% to $72 million from $76 million.

Meanwhile, equity other than reinvestment of earnings turned around to $352 million from a net withdrawal worth $43 million last year. This, as placements doubled to $373 million from $186 million, while withdrawals dropped by 90.7% to $21 million from $229 million.

In January, equity capital infusions came mostly from the Netherlands and Singapore. The central bank said inflows were mainly funneled into the manufacturing and real estate sectors.

Inflows to equity and investment fund shares also soared to $424 million from the $33 million seen in January 2019.

The year-on-year increase in inflows was bolstered by better risk appetite on the back of developments in the US-China trade war, according to UnionBank of the Philippines Inc. Chief Economist Ruben Carlo O. Asuncion.

“[It] can be attributed to the steadily improving global trade climate due to the resolution of the US-China trade war through the Phase 1 deal,” he said in an e-mail.

Investor sentiment was also buoyed by the spike in government spending, said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

“The pickup in government spending, especially in infrastructure since the latter part of 2019 to early 2020 may have also encouraged the increase in FDIs as of January,” he said.

On the other hand, the month-on-month decline in FDI inflows may be attributed to the “temporary shock due to the Taal Volcano eruption,” Mr. Asuncion said.

“[It] may already be attributed to coronavirus concerns that already led to the unprecedented lockdown in China, the world’s second-biggest economy, in the latter part of January,” Mr. Ricafort said.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said FDI inflows will be weaker this year as the global economic outlook worsened due to the severity of the impact of COVID-19.

“The pandemic will likely mean less FDI flows for this year and maybe next as companies may not be in expansionary mode after the virus forced lockdowns across the globe,” he said in an e-mail.

Scenario planning key to post-pandemic survival strategy

By Denise A. Valdez
Reporter

SCENARIO PLANNING is vital to a company’s post-pandemic survival strategy, especially since both experts and industry leaders cannot say with certainty how the future would look like.

“There’s no telling (when the market could recover). The only thing that we have control over is planning… Scenario planning helps us to become flexible (and) have ready plans for whatever situation we find ourselves in,” Kantar Philippines, Inc. President Gary de Ocampo said during the BusinessWorld Insights online forum on the business impact of the coronavirus disease 2019 (COVID-19) pandemic on Wednesday.

As the situation evolves on a near daily basis, Mr. De Ocampo said the best way to adapt is by preparing for multiple scenarios considering three primary factors: the behavior of the government and institutions, the behavior of people and the behavior of the virus.

“These future scenarios can act as a starting point to being ready for how the crisis might evolve. They will give us a framework for the evolution towards the new economy, which we’ll have to define, along with the shape of demand,” Mr. De Ocampo said.

The Philippine economy is already seeing the impact of the coronavirus crisis, as it contracted by 0.2% in the first quarter.

Simon Wintels, partner at McKinsey Singapore, said there will be two primary drivers for the country’s gross domestic product (GDP) growth in the years ahead: getting the virus under control and instituting appropriate economic policy.

He said the faster the country gets the COVID-19 outbreak under control, the sooner the economy can recover. Similarly, stimulus measures will also have to be effective to cushion the economic impact.

Leaders, Mr. Wintels said, will have to work on quelling consumer uncertainty because this will boost consumer sentiment, which in turn will drive consumption.

“The faster an economy is able to settle the uncertainty about what’s going to come…, the quicker the comeback. It will take quarters rather than weeks, and it could take three years, if not longer, if all doesn’t go well,” Mr. Wintels said.

As far as planning goes, Mr. De Ocampo said it will vary per industry.

For Coca-Cola Philippines, President and General Manager Winn Everhart said the company has already observed a decline in demand as most Filipinos are only consuming their products at home.

“While we have a strong at-home position, a lot of our business is being served in restaurants, sporting events, out with friends… As that traffic has declined, we definitely have felt the extent of it,” he said.

What the company hopes for is pent-up demand after quarantine, which Mr. Everhart said Coca-Cola has seen in Vietnam, China, Korea and Taiwan.

For logistics firm Entrego Express Corp., the new environment that forces people to adjust to remote shopping and consumption has opened a door of opportunity to expand its business.

Entrego Director Nicky Gozon noted the lockdown has set the stage for e-commerce to grow bigger, reducing dependence on foot traffic in brick and mortar stores. “Logistics will play a big role in bridging this gap,” he said.

Vincent Tempongko, Globe Telecom, Inc. vice-president for site acquisition and management, said the stay-at-home rules have resulted in consistently high network traffic and bigger demand for its at-home products.

As the relevance of Globe’s services continues to rise, Mr. Tempongko said the company intends to remain aggressive in upgrading its network, but focus now may be in increasing capacity in residential areas.

With the situation forcing a change in behavior both in businesses and consumers, Kantar’s Mr. De Ocampo said some new trends might emerge: heightened attention to hygiene and increased importance of self-sufficiency.

“What people really want is a hygiene perimeter within which they feel safe and can get back to normal. Each brand or retailer has to do this, and that’s the first takeaway about the right signal to send to reactivate demand,” he said.

Stockpiling may be normalized, longer shelf life of products might emerge, and new storage solutions might come up. Mr. De Ocampo said people want to be ready and not get caught by surprise again.

“When we look at survey data, consumers are not saying that they aspire for a new normal. Consumers want to get back to normal, they want to return to what they know… Therefore, depending on which industry you operate in, consider which of these behavioral changes will be temporary and which will really be assimilated into new and lasting ways,” Mr. De Ocampo said.

Government plans to borrow P170 billion in June

THE government is planning to borrow P170 billion from the domestic market in June, according to the Bureau of the Treasury (BTr).

In an advisory on Wednesday, BTr said the borrowing plan for next month is similar to the volume offered in May. It plans to issue a mix of short-term and long-term securities.

The BTr will hold auctions for Treasury bills (T-bills) every week to raise P110 billion, while fortnightly auctions for Treasury bonds (T-bonds) will raise P60 billion.

According to the BTr, P20 billion worth of 91-day, 182-day, and 364-day T-bills will be offered every Monday — June 1, 8, 15 and 22. It will offer P15 billion worth of 35-day papers on June 2 and 16.

For the long-term tenors, BTr will raise P30 billion in three-year T-bonds on June 9 and another P30 billion via five-year notes on June 23.

“We have extended the curve to 3 and 5 years with appetite on this segment for yield pickup. We retained 35-day to provide additional liquidity layer and we are just rolling it over,” National Treasurer Rosalia V. de Leon told reporters via Viber.

A bond trader said the borrowing program was unexpected as the BTr opted not to extend longer tenors beyond five-year bonds despite the demand.

“Quite surprised they didn’t go for longer tenors given the ample demand. However, this may also be an indicator that the demand for longer tenored bonds isn’t that strong yet,” a bond trader said via Viber.

In May, the government raised a total of P226.3 billion from a mix of T-bills and T-bonds, excluding the results of the tap facility on Wednesday.

The total borrowings exceeded the P170-billion borrowing program set for this month after opening the tap facility after each auction and upsizing the volume awarded on some instances. — Beatrice M. Laforga

First Gen shares soar on KKR unit’s offer

By Adam J. Ang

FIRST Gen Corp.’s (First Gen)shares surged upon trading resumption on Wednesday, a day after a Singaporean firm submitted to regulators its tender offer to buy almost a tenth of the Lopez-led energy company’s stocks.

The energy firm told the Philippine Stock Exchange, Tuesday, that Valorous Asia Holdings Pte. Ltd., a unit of KKR Asia Pacific Infrastructure Holdings Pte. Ltd., intends to purchase around 6%-9% of its total issued and outstanding common shares.

On May 27, shares in the company rose by P2.51 or 14.15% to close at P20.25 apiece.

“[First Gen] shares surged today after the company Valorous made an offer to acquire as much as 9% [shares] of the company at P22.50 [each],” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message.

He said the tender offer represents more than a 25% premium over the company’s last traded price on May 22 at P17.74.

First Gen requested a one-day trading suspension on May 26 to give way for the equal dissemination of information on the offer, as well as to protect its stock price.

KKR Asia Pacific Infrastructure is owned by KKR Asia Pacific Infrastructure Investors SCSp based in Luxembourg. The latter is managed and advised by Kohlberg Kravis Roberts & Co. L.P., a unit of New York-listed investment firm KKR & Co., Inc.

In an interview with BusinessWorld, a KKR official said the all-cash offer could bring immediate return on shareholders’ investments at an “attractive” premium.

“KKR has made this tender offer in good faith and would welcome the opportunity to be a minority investor available to positively engage with First Gen’s management team and the Lopez family as helpful in the future,” KKR Asia Pacific Infrastructure Head David Simon Luboff said.

The tender offer commenced on Wednesday and will end on June 24, which period can be extended upon approval from the Securities and Exchange Commission.

KKR has actively invested in the hospital arm of Metro Pacific Investment Corp. and Voyager Innovations, Inc., a unit of PLDT, Inc.

FGen LNG Corp., a unit of First Gen, is among companies that submitted proposals to build regasification facilities for imported liquefied natural gas (LNG).

On March 4, it filed with the Department of Energy (DoE) an application for a regulatory permit for the construction of its offshore terminal for LNG within First Gen’s energy complex in Batangas City.

The project, once completed, will bring in an interim floating storage and regasification unit (FSRU), which will hasten the introduction of the imported fuel to the Philippines. The country has yet to enter any LNG supply contracts from overseas producers.

Publicly listed First Gen had said that upon the issuance of a regulatory permit, it might start the project as early as this month so it could receive imported LNG by the third quarter of 2022.

Due to the prevailing public health crisis spurred by the global pandemic, the company expects the permit to come in later. FGen LNG has been preparing to build its LNG terminal, which could happen soon after the crisis subsides and when conditions would allow construction activities to be done safely.

The DoE earlier declared First Gen’s LNG terminal as an “Energy Project of National Significance” under Executive Order No. 30, allowing it to enjoy faster processing of permits from government agencies.

Ayala Land plans up to P19-billion bonds to refinance debt

AYALA Land, Inc. (ALI) is planning to issue bonds that will raise up to P19 billion that it will use to refinance outstanding debt obligations.

In a disclosure to the stock exchange Wednesday, the property developer said its board of directors had approved offering retail bonds and/or corporate notes that will be listed on the Philippine Deal and Exchange Corp., and/or issuing bilateral term loans.

It said proceeds from the offering are to be used to refinance the company’s outstanding loans.

ALI Chief Finance Officer Augusto Cesar D. Bengzon told stockholders in a meeting last month the company was targeting to issue a two-year bond in early June to refinance loans.

“Our new cash flow budget is for the company to pay down a portion of its outstanding debt obligations this year, bringing it to a level equivalent, if not lower than, our 2019 year-end debt levels,” he said in the April 22 meeting.

In the same meeting, Mr. Bengzon said ALI had lowered its capital expenditure budget for 2020 to P70 billion from P110 billion to help it cope with the impact of the coronavirus disease 2019 (COVID-19) pandemic.

He said the company wants to support its capital spending and financing expenses, and possibly reduce its outstanding debt, without the need to raise new capital.

ALI’s total borrowings as of end-2019 is P211.1 billion, up from P187.1 billion in end-2018. Its net debt-to-equity ratio, which measures how much of its financing is supported by debt, is 0.78 last year from 0.72 a year earlier.

In the first quarter of 2020, ALI’s total borrowings stood at P230.7 billion, and its net debt-to-equity is 0.85. Its earnings during the period dropped 41% to P4.3 billion as it saw lower bookings and completions due to the Taal eruption and Luzon lockdown.

Shares in ALI at the stock exchange shed 65 centavos or 2.17% to close at P29.25 each on Wednesday. — Denise A. Valdez

Fruitas to focus on delivery, new distribution channels

By Denise A. Valdez, Reporter

FRUITAS Holdings, Inc. is taking on the so-called “new normal” with increased focus in its delivery capabilities and multi-product stores.

In a statement Wednesday, the operator of fruit and beverage kiosks said the coronavirus disease 2019 (COVID-19) pandemic and the lockdown that came with it have pushed it to adjust its approach to business.

“[Fruitas] is taking several specific initiatives to adapt to the ‘new normal’, anchored on further investment in its delivery business, opening new multi-product stores in communities, and continuing expansion through strategic network development, partnerships, and disciplined acquisitions,” it said.

Fruitas bought 100% of food delivery firm CocoDelivery, Inc. in March to expand the coverage of its services from solely Fruitas coconut water to include other Fruitas brands. Since the lockdown started, the company said CocoDelivery had proven effective in driving up sales to soften the blow of having to close its stores.

Now, Fruitas wants to build more CocoDelivery hubs that will double as fresh stores in communities located in Metro Manila and high-density provinces.

“We expect to convert or expand some existing store locations, leading to minimum capital expenditures. These stores will offer multiple products to extract maximum sales from each location,” it said.

Another strategy of the company is signing partnerships to increase the distribution channels for its products. Since the lockdown started, Fruitas has forged partnerships with Pan de Manila, Bukidnon Milk Company and PeriPeri Corp.

“It will continue to forge new partnerships to widen its distribution channels and/or increase product breadth… As the pandemic may cause stress on some businesses, Fruitas will evaluate attractive acquisition opportunities which may emerge,” it said.

When the company did its initial public offering (IPO) last year where it raised P1 billion in proceeds, it said its plan was to open 150 to 250 stores every year within the next three years. Fruitas said some of the store openings scheduled for 2020 might be pushed back to the first half of 2021.

“The proceeds from our recent IPO place us in a good position to withstand the headwinds from the current situation and strategically invest in new revenue and profit streams that will make us stronger after we emerge from COVID-19,” Fruitas President and Chief Executive Officer Lester C. Yu said in the statement.

He noted because of the nature of Fruitas’ business, which demands low capital expenditures as it is built on small-footprint stores, allows it to temper the impact of the pandemic.

Fruitas has not reported its latest earnings yet. Its shares at the stock exchange dipped one centavo or 0.83% to P1.20 each on Wednesday.