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Korea’s Lotte assures SEC of plan to buy more PCPPI shares

By Denise A. Valdez, Reporter

LOTTE Chilsung Beverage Co. Ltd. will proceed with its plan to acquire more shares in listed Pepsi-Cola Products Philippines, Inc. (PCPPI) as the Securities and Exchange Commission (SEC) asks for more submissions from the company.

The Korean conglomerate told PCPPI in a letter last week about the SEC’s review of its plan to buy PCPPI shares. Lotte Chilsung’s letter was disclosed by PCPPI to the stock exchange on Monday.

The SEC evaluated the fairness opinion of Punongbayan & Araullo, Lotte Chilsung and PCPPI’s financial advisor for the tender offer, and asked Lotte Chilsung to submit an amended tender offer report to include other requirements such as the results of other valuation procedures.

“Lotte Chilsung would like to assure PCPPI shareholders of its intention to complete the transaction as provided under the terms and conditions of the tender offer,” the company wrote.

“However, in view of the timetable it will take to comply, we intend to request for an extension from the SEC to allow the company to file the amended tender offer report at a later time,” it added.

To recall, the SEC ordered the discontinuation of the tender offer of PCPPI shares in February because of supposed issues in the conduct of valuation and fairness opinion of PCPPI shares.

Lotte Chilsung is buying up to 2.13 billion shares in PCPPI, equivalent to 57.78% of the company’s outstanding capital stock as of end-September, as part of a strategy to raise its economic interest in PCPPI. Lotte Chilsung is offering to buy the shares from shareholders at P1.95 each.

The transaction has been approved by the Philippine Competition Commission (PCC) last month. The approval of the PCC and the SEC are required for such transactions.

Lotte Chilsung is based in Seoul and is in the business of manufacturing soft drinks, food and other beverages. It has a controlling stake in PCPPI, the licensed bottler of PepsiCo, Inc. and Pepsi Lipton International Ltd. in the Philippines.

PCPPI handles brands such as Pepsi, Mountain Dew, 7-Up, Mirinda, Mug, Gatorade, Tropicana, Lipton, Sting, Premier, Milkis and Aquafina.

In a separate statement on Monday, PepsiCo said it donated $500,000 (about P25.4 million) to join other top business groups in raising more than $30 million (about P1.6 billion) to help vulnerable communities amid the coronavirus disease 2019 (COVID-19) pandemic.

Shares in PCPPI at the stock exchange inched up three centavos or 1.69% to P1.81 each on Monday.

Sesame Street come up with quarantine special

A half-hour special featuring Sesame Street characters is airing on Friday, April 24 at 8:30 a.m. on HBO, HBO GO, Cartoon Network, and Boomerang in an effort to help “kids and families feel connected in this time of uncertainty,” a statement read.

Called Sesame Street: Elmo’s Playdate, the special will also be featuring actors Anne Hathaway, Tracee Ellis Ross, and Lin-Manuel Miranda.

Sesame Street is a five-decade-old children’s program and a staple of US channel PBS. The show features a well-loved cast of characters, from Sesame Street’s mascot Elmo to Big Bird and Oscar the Grouch, among other Muppets teaching children about basic knowledge and acceptable social behavior.

The half-hour special follows Elmo, Grover, Cookie Monster, Abby Cadabby, and a few famous friends as they find new ways to play and learn together.

“Celebrating everything from the EMTs, doctors, and other everyday heroes who are helping families through the health crisis to the simple pleasures of baking cookies at home, the playdate takes the form of a cozy video conference that will feel very familiar to today’s viewers,” the statement said.

Meanwhile, celebrity guests will join the gang by singing songs, playing games, and doing silly dance breaks. Tracee Ellis Ross will be playing a game of “Elmo Says,” while Lin-Manuel Miranda will be singing “Old McDonald Had a Farm.” Anne Hathaway will also join Elmo in exercising via “Head, Shoulders, Knees, and Toes.”

The special is part of Sesame Street’s Caring for Each Other initiative where resources are designed to help parents “provide comfort and manage anxiety, create routines, foster playful learning at home, and keep kids physically and mentally healthy.”

The same initiative also made available more than 100 Sesame Street e-books for free on all major e-book platforms. For more information on the Caring for Each Other initiative and its resources, visit SesameStreet.org/caring.

Elmo’s Playdate is airing on April 24, 8:30 a.m., on HBO and HBO Go with several reruns scheduled on the same day, and on April 25. On April 26, the show will premiere on Cartoon Network at 6:45 a.m. and on Boomerang at 8:30 a.m.

Cartoon Network is on SkyCable ch. 43 and 178 (HD), and on Cignal ch. 74 and 220 (HD). Boomerang is on SkyCable ch. 42 and Cignal ch. 76. HBO is on SkyCable ch. 54 and 168 (HD) and Cignal ch. 53 and 210 (HD). HBO GO is HBO’s regional streaming service with subscription at P149 a month.

Manila terminal operations back to normal, says ICTSI

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) said Monday operations at the Manila International Container Terminal (MICT) have returned to normal levels after stakeholders responded to calls to withdraw their overstaying cargoes.

“Overall terminal utilization is now under 67% and reefer utilization at under 65%, with cargo pullouts during the enhanced community quarantine (ECQ) peaking last week,” the listed port operator said in a statement.

It added: “The pullouts last week do not include numerous containers of unclaimed cargo, carefully transferred to other yards and facilitated by the Bureau of Customs (BOC) and the Philippine Ports Authority (PPA). Moreover, all incoming ships are able to dock as scheduled, with no waiting time.”

PPA General Manager Jay Daniel R. Santiago has said that the shutdown of Manila port terminals is possible if cargo owners and consignees do not heed the agency’s request to immediately remove their ready-for-delivery and overstaying cargoes.

ICTSI has also appealed to its consignees to withdraw their refrigerated containers immediately.

The company also offered an option for businesses that are unable to take delivery at their own facilities. It said they can utilize ICTSI’s off-site facilities in Laguna, Bulacan, or Cavite.

ICTSI executive Vice President Christian R. Gonzalez said: “Thanks to the extraordinary efforts of our frontline employees and many port stakeholders, the terminal has been able to pull off this feat. Efforts should continue, however, to ensure that we have no repeat of the dangerously low level of pullouts we experienced at the end of March and in early April. The statistics have proven that the government-implemented exemptions for cargo and penalties for overstayers worked and that these, along with the efforts of importers, have avoided the unmanageable consequences we would have had if we did not respond as we did.”

He added: “With the continued ECQ, we cannot afford to be complacent. We must remember that there remains a significant amount of unclaimed cargo from well before March 2020, and we must ensure a free flow of cargo to facilitate the transport of critical food, medical supplies and basic necessities.” — Arjay L. Balinbin

The film fest must go on

The pandemic may have halted many film festivals, including Cinemalaya and Cinema One Originals and the Daang Dokyu film festivals, but MOVIEMOV, the Italian Film Festival, has found a way to run the festival online from April 21 to 26.

The fifth run of the festival, organized by the Philippine Italian Association (PIA), will be held at an online movie theater with a capacity of 300 people per screening, on a first-come, first-served basis.

All films will have English subtitles.

MOVIEMOV will be screening seven films from contemporary Italian cinema and a classic chosen by the PIA and the Film Development Council of the Philippines. They are:

Parents in Progress (2018) by Laura Chiossone follows the story of a single mother hell-bent on making her son’s 8th birthday party perfect, but the son changes everything with an unexpected performance. The film screens on April 21, 9 p.m.

Citizens of the World (2019) by Gianni di Gregorio is the story of three Italians in their 70s who decide to leave their communities and live abroad to try and change their lives, maybe in ways they didn’t expect. The film screens on April 22, 9 p.m.

The story of an elderly gay couple tasked to take care of two children is at the center of Goddess of Fortune (2019) by Farzan Ozpetek, while mystery film The Invisible Witness (2018) by Stefano Mordini follows a man who wakes up beside the dead body of his lover without any idea if he did the crime or not. He is charged with murder while his lawyer tries to find the truth that will set him free.

Goddess of Fortune is scheduled to be shown on April 23, 9 p.m., and The Invisible Witness on April 24, 9 p.m.

The fifth entry in the festival is Laura Luchetti’s Twin Flower (2018), a film about two teenagers on the run from a dark and violent past that rendered one mute. Twin Flower screens on April 25, 9 p.m.

Italian classic film La Dolce Vita (1960) by Federico Fellini is screening on April 26, 5 p.m. The film follows a restless reporter for the society pages of a newspaper who tries to contend with the overdose of his long-time girlfriend while pursuing a wealthy heiress and a movie star. The film is screened in celebration of Mr. Fellini’s centenary. It will screen on April 26, 5 p.m.

The final film of the festival is The Dog Snatch (2019) by Fulvio Risuleo, which follows a group of young dog sitters whose charge, a French bulldog, is stolen by a mysterious character and how they try to get the dog back. It will screen on April 26, at 9 p.m.

Some of the directors of the selected films, including Laura Luchetti, Fulvio Risuleo, and Gianni Di Gregorio, will take part in the event through live social and video contributions in the virtual theater to present their films.

The virtual theater can be accessed via www.mymovies.it/virtual-theatre/moviemov and will function much like a “real cinema,” according to a release, as the viewers can engage in conversation with each other via a chat box.

The screenings are free and do not require registration. For more information, visit the Moviemov Italian Film Festival Facebook page.

WeWork plans to offer back-up workspaces

By Jenina P. Ibañez
Reporter

WEWORK Companies, Inc. seeks to offer back-up flexible workspaces to assist Philippine companies with business continuity plans (BCP) in disruptive situations.

Turochas Fuad, WeWork Southeast Asia and Korea managing director, said in an e-mailed response to questions on Monday that the company ceased support across its Philippine locations.

Only select industries are allowed to operate in their facilities or offices within the enhanced community quarantine.

“Closely aligned with the government’s directives, WeWork has since ceased community and cleaning support across all locations. Members have also been strongly encouraged to abide by the government measures and work from home,” he said.

He said the company is looking into its offerings to help companies with both the current situation and future disruptive scenarios.

“In view of the current situation, we are still seeing a healthy momentum of demand through increase in proactive conversations from our members and non-members in better understanding the importance and relevance of space-as-a-service as part of their BCP strategy.”

He said WeWork is adapting its swing spaces or short to long-term solutions offerings to give companies the space to scale up or down and mobilize their workforce.

“In the event of a disruptive situation, having a back-up workspace is crucial as part of a macro BCP strategy where companies can relocate their teams to maintain business operations.”

He said the spaces can be a recovery asset, as companies that under or overestimate real estate needs can experience “huge opportunity costs.”

In an e-mail to brokers and clients, WeWork Chief Executive Officer Sandeep Mathrani said the company is evaluating changing its floor layouts to support social distancing, including “every other” desk occupancy in private offices and reduced lounge and common space capacity.

“We will post new recommended capacity load signage and messaging at entrances to each room,” he said, noting that the spaces will have regular cleaning and will put up sanitation stations.

Mr. Fuad said the company is working with each of their Philippine location’s building management for hygiene measures.

WeWork Companies, Inc., Bloomberg reported, does not expect to hit its 2020 financial targets due to the outbreak. The company’s plans for an initial public offering last year failed.

WeWork Philippines has suspended all its internal and member events, and has implemented work from home measures for employees.

WeWork has five Metro Manila locations, including Menarco Tower, Uptown Bonifacio Tower Three, Milestone at 5th Avenue, and Brilliance Center in Taguig City as well as RCBC Plaza in Makati City.

Gov’t hikes T-bill award on strong demand

THE GOVERNMENT upsized the volume of Treasury bills (T-bills) it awarded on Monday amid lower rates and strong bids, as the market welcomed the central bank’s stimulus measures, such as last week’s off-cycle rate cut.

The Bureau of the Treasury (BTr) awarded P24 billion in T-bills, P4 billion more than its initial offer of P20 billion as total bids for the short-term papers hit P80 billion.

Amid strong demand and low rates, the BTr also opened its tap facility to raise another P10 billion via the one-year securities.

Broken down, the BTr raised P7 billion in 91-day papers, more than the initial P5-billion offer as the tenor attracted bids worth P33.01 billion. The three-month papers fetched an average rate of 3.113%, down 35.8 basis points (bps) from the previous rate of 3.471% last week.

It also upsized its award of 182-day papers to P7 billion from the P5-billion plan, as total tenders reached P21.125 billion. The six-month papers yielded an average rate of 3.239%, lower by 17 bps from 3.409% previously.

For the 364-day papers, the BTr fully awarded P10 billion as planned out of total bids worth P25.864 billion. The average rates for the one-year securities dropped 39 bps to 3.295% from 3.685% previously.

National Treasurer Rosalia V. de Leon said they upsized the award after rates dropped following the 50-bp cut in benchmark interest rates fired off by the Bangko Sentral ng Pilipinas (BSP) last week.

“Accepted more than offer because double non com award. Open tap for P10 billion for 364-day with significant drop in rates [following] 50 bps off-cycle cut,” Ms. De Leon told reporters via Viber.

Ms. De Leon added that due to the strong appetite observed for the one-year T-bills, they decided to cut the offer of 91-day papers to P5 billion from P10 billion in previous auctions and increased the offer size for the 365-day T-bills to P10 billion from P5 billion previously.

“Previous auctions saw strong appetite for one-year (papers) for yield pickup and incremental liquidity from P120 billion maturity,” she said.

A bond trader said they expect yields to drop after the BSP fired off stimulus measures that helped boost liquidity in the market and as long as there are “no other negative news.”

“We expect this downward momentum in yields to persist on back of liquidity boost from BSP. Recent moves by BSP add to investor confidence,” the trader said via Viber.

“BSP lowered the rates, and has lowered RRR (reserve requirement ratio) which freed up significant liquidity. But since there is less economic activity, there will be less loan availments. Banks will then have to put the excess funds in government bonds,” the trader said.

The BSP Monetary Board, in an off-cycle meeting last Thursday, cut the key policy rate or the overnight reverse repurchase rate to 2.75%. Accordingly, interest rates for the central bank’s overnight deposit and lending facility have been trimmed to 3.25% and 2.25%, respectively.

These rates are the lowest on record and also since the BSP shifted to an interest rate corridor in 2016.

The cut came less than a month after the 50-bp reduction in a scheduled Monetary Board meeting on March 19, which took effect on March 20.

For this year alone, the central bank has slashed rates by a total of 125 bps after a 25-bp cut on Feb. 6. This followed 75 bps in cuts implemented in 2019. This means the BSP has completely unwound the 175 bps in hikes done in 2018.

The BSP also slashed the RRR of universal and commercial banks by 200 bps earlier this month, with analysts projecting another 200-bp cut to boost liquidity.

The Treasury has set a P190-billion local borrowing program for April, broken down into P130 billion in Treasury bills and P60 billion in Treasury bonds. – Beatrice M. Laforga

Ayalas’ AC Health taps QualiMed for COVID-19 referral hospital

THE healthcare arm of Ayala Corp. (AC), Ayala Healthcare Holdings, Inc. (AC Health), has tapped QualiMed to convert one of its facilities into a coronavirus disease 2019 (COVID-19) referral hospital.

AC Health signed the agreement with QualiMed yesterday assigning its hospital in Sta. Rosa, Laguna as a COVID-19 referral facility.

QualiMed operates four general hospitals, two surgery centers and several clinics across the Philippines. It is owned by Mercado General Hospital, Inc. in partnership with AC subsidiary Ayala Land, Inc.

The facility in Sta. Rosa which will be used as a COVID-19 referral hospital is a 102-bed general hospital located within Ayala Land’s Nuvali development complex.

With the assignment as a COVID-19 referral hospital, the facility will be developed by building a COVID-19 triage holding area next to the hospital, building a Biosafety Level 2 Laboratory for COVID-19 testing, converting inpatient beds of the facility for exclusive use of COVID-19 patients, expanding the bed capacity in its intensive care unit, and forming a dedicated COVID-19 team composed of professionals from QualiMed and AC Health’s FamilyDoc and Healthway networks.

The project is funded by AC’s different business units, namely Ayala Foundation; Ayala Land; BPI Foundation; AC Energy Philippines, Inc.; Manila Water Co., Inc.; Globe Telecom, Inc.; Integrated Micro-Electronics, Inc.; and AC Motors.

“We’ve come together at the Ayala Group to support this project so that patients can have a facility to go to, especially during these difficult times,” AC Health President and Chief Executive Officer Paolo Maximo F. Borromeo said in the statement.

QualiMed Sta. Rosa is now receiving COVID-19 referrals, but the upgraded facilities will be rolled out in phases starting May 1.

“As a referral institution, the facility will be compliant with infection control standards to ensure the safety of patients and medical professionals,” QualiMed President and Chief Executive Officer Edwin M. Mercado was quoted as saying in the statement.

Shares in AC at the stock exchange gained P9 or 1.51% to P606 each on Monday.

MEGAWIDE BUILDS QUARANTINE FACILITY

Meanwhile, volunteer employees and subcontractors of Megawide Construction Corp. are building emergency quarantine facilities (EQFs) to help reduce the crowding in Metro Manila’s major hospitals.

The team, composed of engineers, electricians, plumbers and carpenters, are building EQFs at the National Kidney and Transplant Institute (NKTI), Fe Del Mundo Medical Center (FDMMC), Dr. Jose N. Rodriguez Memorial Hospital (DJNRMH) and Cardinal Santos Medical Center (CSMC).

“Our staff have committed to volunteer for a total of 12 days to build the EQFs, and we finished construction of the EQFS for FDMMC and NKTI on Day 5. We are targeting to complete construction for the DJNRMH and CSMC EQFs by Day 10,” Megawide Deputy Head for Construction Frederick T. Tan said in a statement.

The project is led by local architecture firm WTA Architecture + Design Studio, which aims to build almost 50 EQFs across Metro Manila and nearby provinces in its first two batches of rollout.

Aside from helping build quarantine facilities in hospitals, Megawide also previously donated a disinfection chamber to the local government of Quezon City. It also distributed alcohol, face masks, face shield and protective suits to various hospitals across Metro Manila.

Shares in Megawide at the stock exchange slipped 32 centavos or 4% to P7.68 each yesterday. — Denise A. Valdez

Robinsons Land goes digital to handle home buying inquiries

ROBINSONS Land Corporation (RLC) is making it easier for buyers to purchase a property through its online facility.

As online transactions become the “new normal,” RLC is showcasing its high-rise residential developments through digital catalogs and virtual tours on its website (www.robinsonsproperties.com).

“Through this online facility, RLC aims to make home buying possible and convenient for property seekers, especially now that we are on enhanced community quarantine nationwide,” the company said.

For more information, interested buyers can also book an online meeting with a property specialist, send an e-mail to RobinsonsResidences.Marketing@robinsonsland.com, or message through RLC’s official online platforms on Facebook and Instagram.

“Unit reservations may be done from home by simply sending scanned copies of the required documents, government ID, and proof of online payment of reservation fee,” RLC said.

Music to explore during quarantine (part 2)

By Michelle Anne P. Soliman, Reporter

Whether it be a workout session, studying or working, or enjoying a good book, activities gain a different vibe when set to music. Here’s another list of artists – this time from across Europe – to consider adding to your daily routine playlists.

Artists and cultural organizations have also uploaded concerts on social media – films of previous big performances or new shows done at home in compliance with social distancing.

ALEXANDER RYBAK
Belarusian-Norwegian singer Alexander Rybak gained international popularity after winning the Eurovision Song Contest in 2009 with the song “Fairytale.” Whether an upbeat dance tune, romantic ballads, or a children’s musical, his music and instrumental compositions are recognizably distinct with his violin solos. Listen to his songs “5,000 Letters” (2010), “Europe Skies” (2010), and “That’s How You Write a Song” (2018).

His latest music is found at: https://open.spotify.com/artist/3LLNDXrxL4uxXtnUJS5XWM

LOREEN
Swedish-Morrocan singer Loreen (full name: Lorine Zineb Noka Talhaoui) first showcased her powerful and soulful vocals in the Swedish Idol in 2004. In 2012, she won the Eurovision Song Contest with the song “Euphoria” (listen to its various remixes at https://open.spotify.com/album/3UHGk8U4YfRrVzXvIQgi8H). As an introduction to the singer’s alternative pop infused with techno music, check out her live performances of “My Heart is Refusing Me” (2012), “Paperlight” (2015), and “Walk with Me” (2019).

Her latest album, Ride (2017), can be heard at https://open.spotify.com/album/1tNF8fGMGdCpHnZybCGW0R

OONAGH
German singer-songwriter Oonagh (full name: Senta-Sofia Delliponti) first appeared on the talent show Star Search in 2003. A huge fantasy fan, the singer’s musical style involves infusing J.R.R. Tolkien’s Elvish language in her songs along with ethno-pop sounds. She sings in German with the Elvish language usually sung in the chorus. Tolkien fans may find it interesting to listen to songs from her 2014 self-titled album such as “Oromë,” “Undómiel,” and “In den Gärten von Valinor (In the Garden of Valinor),” and discover the lyrical references to the novels.

Her latest album, Eine Neue Zeit (2019), can be found at https://open.spotify.com/album/2jHJBdpyARq1hJlBxAHTkO

ZAZ
The French singer Zaz (real name: Isabelle Geffroy) mixes jazz, pop, and soul in her tracks. Feel like you are walking in the streets of Paris while listening to her songs “Je Veux” (2010), “Éblouie par la nuit” (2010), and “On Ira” (2013), and her album Paris (2014) which features her versions of classic French songs.

Her latest album, Effet miroir (2018), can be heard at https://open.spotify.com/album/5aM8gkw3dJQ7XSc2Uq8g8a

Here’s a list of artists who regularly upload performances from home via social media during quarantine:

ANDREA BROCELLI’S MUSIC FOR HOPE
Listen to all the songs from Andrea Bocelli’s Easter Sunday show Music for Hope at the Duomo cathedral in Milan, Italy. Visit AndreaBocelli.lnk.to/MusicForHope1FP. Watch the concert at https://www.youtube.com/watch?v=huTUOek4LgU&t=738s

Josh Groban brings his concerts to your home via online streaming every Thursday on YouTube (https://www.youtube.com/user/joshgroban). The second concert in the series Stages: Live (2016) premieres on April 30 (5 p.m. PT/ 8 p.m. ET). The singer has also included commentary throughout each film. For more information, visit https://www.facebook.com/JoshGroban/.

JOAN JETT
American rocker and 2015 Rock and Roll Hall of Fame inductee Joan Jett and the Blackhearts perform songs from their homes weekly in a series called Together Apart. The band has previously performed “Light of Day” (1987), “I Hate Myself for Loving You” (1988), and “Make It Back” (2013), To watch, visit https://www.youtube.com/channel/UCURhGCLPWhW4Ssy2bA0kbJg.

THE MET OPERA’S AT-HOME GALA
The Met Opera will livestream a free concert called At-Home Gala on April 25 (1 p.m. EDT/6 p.m. BST). The concert will feature Welsh baritone Sir Bryn Terfel, Maltese tenor Joseph Calleja, American soprano Angel Blue, and Latvian mezzo Elīna Garanča, as well as big names in opera such as Jonas Kaufmann, Anna Netrebko, and Renée Fleming. To watch, visit https://www.metopera.org/season/at-home-gala/

ONE WORLD: TOGETHER AT HOME
One World: Together At Home is a global broadcast and digital special organized by Global Citizen to unite the world and honor COVID-19 frontline workers. Held on April 18, the eight-hour concert features musicians such as Lady Gaga, Elton John, Taylor Swift, and the Rolling Stones. American TV personalities Stephen Colbert, Jimmy Kimmel and Jimmy Fallon hosted the show. To watch, visit https://www.globalcitizen.org/en/connect/togetherathome/#howtowatch.

WORLDWIDE CONCERT FOR OUR CULTURE
Jazz at Lincoln Center’s annual Spring Gala: Worldwide Concert for Our Culture is now available to stream online. The honorees of the event are Clarence Otis and Jacqueline L. Bradley (Ed Bradley Award for Leadership in Jazz) and Phil Schaap (Jazz at Lincoln Center Award for Artistic Excellence). Performers at the gala include: Wynton Marsalis, Cecile McLorin Salvant and Sullivan Fortner, Chucho Valdes, Nduduzo Makhathini, and Baqir Abbas. For more information, visit jazz.org/gala2020. Watch on YouTube: https://youtu.be/IjJbZetCvGw.

Related story: https://www.bworldonline.com/music-to-explore-during-quarantine/

Bank lending picks up in February

BANK LENDING in February grew quicker as easing moves by the central bank in 2019 were felt in the financial system.

Outstanding loans disbursed by universal and commercial banks expanded by 12.2% in February, faster than the 11.6% seen in January, according to data from the Bangko Sentral ng Pilipinas (BSP).

Inclusive of reverse repurchase agreements, lending climbed by 11.4%, also quicker than the 11.2% logged in the January.

The central bank attributed the rise to production loans, which made up 86.3% of the total loans. Lending disbursed to the segment grew by 9.6%, quicker than the 8.8% rise in January.

Production loans continued to increase on the back of lending to sectors including real estate activities (20%); financial and insurance activities (19%); electricity, gas, steam and air conditioning supply (9.7%); information and communication (22.5 %); and construction (16.2%).

The BSP said other sectors also saw higher loans in February, except for those in the manufacturing (-2.1%), mining and quarrying (-10.2%), and other service activities (-34.7%).

Meanwhile, growth of loans for household consumption eased to 37.6% from the 40.1% in January. The growth was fueled by the rise in motor vehicle loans.

Analysts said the easing stance of the BSP last year began to translate to faster bank loan growth.

They, however, said lending may weaken or even drop in the months ahead due to the slowdown caused by the coronavirus disease 2019 (COVID-19) and the lockdown in Luzon.

“Bank lending continued to climb in February, largely on base effects and as the lagged impact of the 2019 reversal in monetary policy,” ING Bank N.V.-Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mailed response.

In 2019, the BSP slashed rates by 75 basis points (bp), partially reversing the 175 bps in hikes in 2018.

The Monetary Board also reduced the reserve requirement ratio (RRR) of lenders by a total of 400 bps in 2019.

Apart from policy moves, the government’s infrastructure thrust also boosted lending growth, said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC).

“[It also] reflected increased infrastructure spending since the latter months of 2019 that had positive effects on related industries in the supply chain of the infrastructure projects,” Mr. Ricafort said in an emailed response.

According to ING’s Mr. Mapa, investment activity, which has an impact on bank lending growth, has been “on the mend” as 2019 came to close and was set to recover in 2020 until the COVID-19 took a toll on the economy.

“We could expect to see bank lending activity curtailed as investment appetite drops out,” he said.

Still, despite seeing likely slower growth in bank lending, Mr. Mapa said weaker investment appetite could be offset “by demand from consumers and corporates who may need funding to bridge payments after cash flows froze over during the lockdown.”

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion likewise expects bank lending growth to be hit by COVID-19.

“In the coming months, lending growth is expected to decline, but the policy adjustments, hopefully, will encourage more borrowing from the economy,” Mr. Asuncion said in an email.

The central bank has already reduced rates by a total of 125 bps this year. This brought the overnight reverse repurchase, lending and deposit rates to 2.75%, 3.25%, and 2.25%, respectively.

Reserve requirement for universal and commercial banks have also been reduced by another 200 bps to 12% since April. Moreover, the BSP has slashed the minimum liquidity ratio of stand-alone thrift and rural banks by 400 bps to 16% until the end of this year as a liquidity boost given the current situation.

Aside from the latest rate cut announced last week, the BSP also said that it will count loans for medium-, small- and micro-sized enterprises as part of banks’ compliance with the reserve requirement to aid smaller businesses. – Luz Wendy T. Noble

Grab opens grocery delivery service

RIDE-HAILING app Grab Philippines on Monday announced the official launch of its new on-demand grocery delivery service called GrabMart.

“Through GrabMart, users can purchase grocery items, personal care products, and soon, even medicines, from specialty stores and well-known retail partners such as Robinsons Supermarket, Great Deals E-commerce Corporation, FamilyMart, Starbucks at Home, ASSI Fresh Plaza, Fetch! Naturals, Dog City, and Barcino to start,” Grab Philippines said in a statement.

The new Grab grocery service, which is currently available in select areas of Quezon City, Pasig, Manila, Mandaluyong, Makati, San Juan, Valenzuela, Parañaque, and Taguig, promises delivery as early as “30 minutes or in a couple of hours.”

Grab said the service will also be available in other areas of Metro Manila in the coming weeks.

Customers can pay in cash, but are encouraged to pay through GrabPay for safer transactions.

“Delivery fee during the Beta period ranges from as low as P89 to P149 based on distance to the store, with a minimal service fee of P30 applicable for all orders,” Grab said.

Grab Philippines said its new service is intended to help Filipinos, including its customers and partners, during the enhanced community quarantine period.

“GrabMart helps not only consumers who need access to daily essentials, but also our delivery-partners and merchant-partners whose livelihood and businesses have been affected by the situation,” it said.

The government has placed the entire island of Luzon under enhanced community quarantine to contain the spread of the coronavirus disease 2019, suspending work, public transportation and other services. — Arjay L. Balinbin

Damosa Land launches food donation drive

DAMOSA Land, Inc. (DLI), through its corporate social responsibility arm Damosa Land Cares, and parent company Anflo Management and Investment Corporation (ANFLOCOR) extended aid to the community by donating agricultural products.

“Agriculture has always played a significant role in our company and the economy of the region. But in this unfortunate time of crisis, we have come to realize how big the industry’s part in the survival and recovery of those who were affected,” Ricardo “Cary” Lagdameo, head of DLI, said in a statement.

DLI provided fruits such as bananas and pomelos to the frontliners in the military and health care workers, such as the Davao City Task Force, Davao Central 911, and PNP Barracks, and the Southern Philippines Medical Center. The bananas came from sister company Tagum Agricultural Development Company, Inc.

The property firm also donated harvested vegetables from Agriya Farm, located in its newly opened mixed-use property Agriya.

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