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Central bank raises P100 billion in short-term bills

By Beatrice M. Laforga, Reporter

The Philippine central bank fully awarded the short-term securities it offered on Friday as tenders nearly doubled the program at its first auction this year.

The Bangko Sentral ng Pilipinas (BSP) borrowed P100 billion in 28-day debt as tenders reached P185.85 billion, making the auction 1.86 times oversubscribed.

The central bank has been making full awards since it started selling its own securities in September.

“The stronger demand for the BSP bills reflects the ample liquidity in the financial system as cash holdings gradually return to normal following the December holidays,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement.

The bills fetched a weighted average yield of 1.6607%, down by 2.296 basis points (bps) from 1.687% at the previous auction on Dec. 18.

Rates sought for the debt ranged from 1.64% to 1.675%, lower than 1.67 to 1.69%, previously.

“Looking ahead, the BSP’s calibration of its monetary operations will continue to be guided by its assessment of market developments and liquidity conditions, as well as discussions with BSP counterparties,” Mr. Dakila said.

The lower rates could be a signal that investors might be expecting the central bank to resume its easing cycle this year, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

“Although the BSP said that it may hold the key rate in the first half of this year, the market is seemingly starting to price in more easing by the central bank this 2021,” he said.

“This is observed because of declining yields. It may also be that players are starting to position themselves ahead of the monetary easing or pause by the BSP,” he added.

Central bank Governor Benjamin E. Diokno this week said the Monetary Board was likely to maintain a low interest environment for the next few quarters to help the economy recover faster from pandemic-induced recession.

The central bank cut benchmark interest rates by a total of 200 bps last year, bringing its overnight reverse repurchase, lending and deposit rates to record lows of 2%, 2.5% and 1.5%, respectively.

Headline inflation quickened to 3.5% in December, mainly due to a faster increase in the prices of food and transportation.

Russian drugmaker seeks vaccine emergency use

Russia’s Gamaleya Research Institute of Epidemiology has applied for emergency use authorization for its coronavirus vaccine in the Philippines, according to the local Food and Drug Administration (FDA).

The regulator, which got the application on Jan. 7, had ordered the drugmaker to submit missing documents, FDA Director-General Eric Domingo said on Friday.

Gamaleya withdrew its application for clinical trials of its vaccine on Jan. 6, the Department of Science and Technology (DoST) said.

“Their reason was simple — they would apply for emergency use authorization so they don’t need the clinical trials here,” Science and Technology Undersecretary Rowena Guevarra told an online news briefing.

US drugmaker Pfizer, Inc. and Britain’s AstraZeneca Plc have also filed for emergency use with the FDA.

The three already have existing emergency use approvals in other countries.

Meanwhile, the DoST said China National Pharmaceutical Group Co., Ltd. (Sinopharm) had yet to decide whether to pursue clinical trials for its coronavirus vaccine in the Philippines.

“Sinopharm has yet to decide if it will conduct a clinical trial here or just apply for an emergency use authorization,” DoST Assistant Secretary Leah J. Buenda told a televised public briefing in mixed English and Filipino.

Ms. Buendia said the agency had signed a confidentiality disclosure agreement with Sinopharm even if it had not yet received any data from the Chinese drugmaker. — Vann Marlo M. Villegas and Kyle Aristophere T. Atienza

Philippines on lookout for 3 virus strains

Health authorities are monitoring the entry of two other coronavirus variants aside from a more contagious strain from the United Kingdom, where there had been a fresh surge in infections.

Health Undersecretary Maria Rosario S. Vergeire noted that aside from the UK variant, they were looking out for the variants from South Africa and Malaysia.

“The three variants are already being monitored as it reflects signature mutations in the spike region of the virus, as has been studied in affected countries,” she told reporters in a Viber group message.

The Philippine Genome Center would continue analyzing positive samples to monitor the new strains, she said.

Health regional offices were tapped to get samples from different regions specifically in the Visayas and Mindanao regions for genome sequencing.

South African Health authorities last month identified the new variant that has caused a second wave of infections there, while a Malaysian health official also announced the detection of another variant in December, according to separate Reuters reports in December.

The Genome Center had not detected the UK variant in the initial 305 positive samples from patients admitted to various hospitals in the past two months and from inbound travelers who tested positive at the airports.

A 30-year-old Filipina domestic helper from Cagayan Valley Region who arrived in Hong Kong in northern Philippines last Dec. 22 tested positive for the UK variant.

DoH said on Thursday she had been isolated in Hong Kong and was stable. — Vann Marlo M. Villegas

Coronavirus cases nearing 484,000

The Department of Health (DoH) reported 1,776 coronavirus infections on Friday, bringing the total to 483,852.

The death toll rose by eight to 9,364, while recoveries increased by 285 to 449,330, it said in a bulletin.

There were 25,158 active cases, 82.6% of which were mild, 8.6% did not show symptoms, 5.4% were critical, 2.9% were severe and 0.48 were moderate.

Bulacan reported the highest number of new cases at 99, followed by Davao City at 96, Quezon City at 83, Rizal at 80 and Laguna at 64.

DoH said seven duplicates had been removed from the tally, while one recovered case was reclassified as death. Five laboratories failed to submit their data on Jan. 7.

More than 6.5 million people have been tested for the coronavirus in the Philippines as of Jan. 6, according to DoH’s tracker website.

The coronavirus has sickened about 88.5 million and killed 1.9 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.
About 63.6 million people have recovered, it said. — Vann Marlo M. Villegas

House to start cha-cha debates next week

The House of Representatives will start debates on a resolution proposing changes to the 1987 Constitution on Jan. 13, a congressman said on Friday.

Party-list Rep. Alfredo A. Garbin, Jr., who heads the House committee on constitutional amendments, said the panel would tackle the resolution filed by Speaker Lord Allan Q. Velasco last year.

The lawmaker said the resolution only proposes changes to economic provisions of the charter.

“Permission is being sought from the Filipino people to entrust to Congress the enactment of exceptions to the general rules stated in particular economic provisions of the 1987 Constitution,” Mr. Garbin said in a statement.

The 33-year old Constitution bars foreign investors from owning more than 40% of certain industries.

He said the coronavirus pandemic had made the matter of easing economic provisions of the Constitution urgent, as domestic markets struggled to boost the economy during the lockdown.

The committee seeks to finish deliberations before year-end, in time for a plebiscite coinciding with the 2022 national elections, Mr. Garbin said. — Kyle Aristophere T. Atienza

Senator seeks dismissal of illegal drug case

Detained Senator Leila M. de Lima has asked a Muntinlupa City court to dismiss her second drug-related charge for insufficiency of evidence.

In an 82-page filing, Ms. de Lima said the prosecution had failed to present evidence that would show that the case involved illegal drugs.

The lawmaker also said the prosecution had failed to prove that she conspired with her co-accused to commit illegal drug trading.

Ms. de Lima said the prosecution in the past three years had failed to specify the type of drugs and quantity involved in the alleged illegal drug trade.

The senator, who is a staunch critic of President Rodrigo R. Duterte, filed a similar pleading this week for one of her three drug trafficking cases.

Ms. de Lima is on trial for allegedly abetting the illegal drug trade in the country’s jails when she was still Justice secretary. She was accused of extorting millions of pesos from a drug lord that she allegedly used to finance her senatorial campaign in 2016.

She has been jailed at the Philippine National Police Custodial Center in Camp Crame since February 2017. — Vann Marlo M. Villegas

Senate to probe sex for gadgets

A senator has filed a resolution seeking to investigate the rising cases of sexual exploitation of children by online predators amid a coronavirus pandemic.

“The delay in face-to-face classes will continue to expose grade school and high school children to these local and foreign sexual predators lurking on the internet,” Senator Imee R. Marcos said in a statement on Friday.

She cited reports that some students have been selling sensual photos and videos of themselves to finance their distance learning.

“The problem may have already grown to involve not only individual perverts but organized crime syndicates,” Ms. Marcos said in the resolution. — Charmaine A. Tadalan

Cash aid for employees to resume

The Employees Compensation Commission (ECC) will resume giving cash aid to employees who got the coronavirus after suspending the program in September over budget constraints.

“We are ready to open again for cash assistance,” ECC Executive Director Stella Z. Banawis told an online news briefing on Friday.

Ms. Banawis said the ECC expanded its cash assistance to cover COVID-related sickness, but had not anticipated the number of applicants that will avail the program.

She said only the cash aid for COVID-19 was suspended, while sickness, medical and funeral benefits and death pension had not been affected.

This comes after reports from labor group Federation of Free Workers that the ECC had denied applications of its members who got infected with the coronavirus.

More than 8,000 people applied for the cash aid, and the commission had processed at least 4,000 beneficiaries, Ms. Banawis said. — Charmaine A. Tadalan

Jollibee to open 28 stores in North America in 2021

Jollibee Food Corp. (JFC) plans to open 28 stores in North America in 2021 as part of its expansion efforts in the continent.

In a statement on Friday, the company said it targets to open 19 stores in the United States and nine in Canada to increase its North American store network.

For 2020, Jollibee said it had opened 16 stores in North America despite the coronavirus disease 2019 (COVID-19) pandemic. The new branches brought Jollibee’s total store network in North America to 62, with US stores accounting for 48, while those in Canada amounted to 14.

Maribeth Dela Cruz, the Jollibee group’s president for North America, said the company recorded double-digit sales growth across North America despite the challenges caused by the pandemic.

“We would not be weathering these hard times without the support of our customers. They’ve shown up for us, and now we want to show up for them,” Ms. Dela Cruz said.

“We’re incredibly grateful for the continued support we’ve received from across these regions and are thrilled to deliver a small spark of joy for them and their families,” she added.

According to Jollibee, some recent openings include its first branch in San Antonio, Texas in late December 2020, which marked the company’s first store in the south-central part of the US. The company also opened its 21st store in California, situated along Mira Mesa Boulevard in San Diego.

“The new store is situated in the area’s biggest retail hub, near Mira Mesa Mall and in close proximity to the University of California San Diego, the Marine Corps Air Station Miramar and Scripps Memorial Hospital,” it said.

Further, Jollibee recently opened another branch at Yonge Street in Toronto, Canada, which the company said is a major retail hub with heavy pedestrian traffic.

The company said it plans to have 300 stores in North America by 2024.

Back home, JFC shares at the stock exchange fell 0.05% or 10 centavos to close at P192.50 apiece on Friday. — Revin Mikhael D. Ochave

SEC offers relief for pandemic-hit financing, lending firms

The Securities and Exchange Commission (SEC) has offered regulatory relief to financial and lending companies to help them cope with the effects of the coronavirus disease 2019 (COVID-19) pandemic.

In a Dec. 22 memorandum circular, SEC Chairman Emilio B. Aquino said one of the regulatory relief measures for companies is the relaxation of the required maintaining net worth of financial companies under Republic Act No. 8556 or the Financing Company Act (FCA).

Under the implementing rules and regulations (IRR) of FCA, financing companies are required to have a minimum paid-up capital of P10 million for those in Metro Manila and other first class cities; P5 million for those in other classes of cities; and P2.5 million for those in municipalities.

The law also requires a financing company to put up a minimum additional capital for each branch or extension office. An additional capital of P1 million should be allotted for those in Metro Manila and other first class cities; P500,000 for other classes of cities; and P250,000 for municipalities.

“The commission hereby provides the following regulatory reliefs to financing companies and lending companies to help the covered entities manage the effects of the COVID-19 pandemic,” Mr. Aquino said in the circular.

Another relief that companies can opt to avail is the lower required investment in financing and lending activities, the SEC said.

Based on the rules, more than 50% of a financing company’s fund must be allocated or invested in its financing activities, while under the IRR of Republic Act No. 9474 or the Lending Company Regulation Act (LCRA), lending companies must use at least 51% of their funds for direct lending purposes.

The other relief that companies may avail is the relaxed period in the commencement of financing and lending operations under the IRRs of LCRA and FCA.

Under the said laws, a financing and lending company must start its operations within 120 days from the release of its certificate of authority to operate.

Mr. Aquino cited Republic Act No. 11494 or the Bayanihan to Recover As One Act (Bayanihan 2) as the reason for the regulatory relief measures. The law gave the SEC the authority to assist the industry in managing risks and potential losses amid the pandemic.

Meanwhile, the SEC said companies that avail of the measures are required to send documents such as a letter showing the intention to avail of the relief, the specific relief chosen and the reason behind choosing it, and a resolution from the company’s board of directors that approves the use of a regulatory relief.

“The company’s application to avail of the regulatory reliefs shall be subject to the commission’s evaluation, which shall be on a case-to-case basis,” Mr. Aquino said.

Recently, the SEC allowed the staggered booking of credit losses to help licensed financing companies, lending companies, and accredited microfinance non-government organizations during the pandemic.

It allowed the staggered booking of credit losses on or after Dec. 31, for a maximum of five years using the straight-line amortization method as seen in the profit or loss statement. — Revin Mikhael D. Ochave

AC Energy sets earlier date for stock rights offering

Ayala-led AC Energy Philippines, Inc. has moved the rights offer period for its stocks to this month, saying it deemed the earlier date to be “prudent” since its existing regulatory approval requires a January 2021 completion.

In a regulatory filing on Friday, the listed energy company said it would open its stock rights offering (SRO) on Jan. 18 until 22, from the first work week of February previously.

The move comes as the company announced that it had obtained approval from the Securities and Exchange Commission (SEC) on Jan. 5 to change its name to AC Energy Corp.

AC Energy is offering 2.27 billion common shares at an offer price of P2.37 apiece. The offering would consist of two rounds to be followed by a domestic institutional offer.

The net proceeds of the offering will be used by the company “to partially fund the development of its various power projects, inorganic growth opportunities as and when they arise, and its other general corporate requirements.”

AC Energy said it had amended its offer period for the offering following the approval of its executive committee. The listing of the stocks is set on Jan. 29.

“The Ex-Rights Date of 8 January 2021, and Record Date of 13 January 2021 remain the same,” the firm said.

The firm said that initially it scheduled the offer period from Feb. 1 to Feb. 5 to “ensure widest dissemination and participation.”

“Given the imminent Ex-Rights Date and Record Date, ACEN deemed it prudent to finalize the dates based on the existing regulatory approval that requires a January 2021 completion,” it said.

The revised dates are subject to the approval of the SEC and the Philippine Stock Exchange (PSE), as well as other conditions. The company said the dates may be adjusted at its discretion and the joint lead underwriters.

The company reiterated that its rights offering is exempted from the registration requirement of the securities code. Because of this, the offer shares are not registered with the SEC.

“Any further offer or sale of such offer shares is subject to registration requirements under the SRC (Securities Regulation Code) unless such offer or sale qualifies as an exempt transaction,” AC Energy said.

In a separate disclosure, the company said the change in its corporate name is meant to align with the expanded scope of business resulting from the consolidation of the international operations of parent firm AC Energy, Inc. via a tax-free exchange through an assets-for-share swap.

The assets-for-share swap will be reviewed by the SEC, and is subject to fair market valuation.

Last year, AC Energy’s top official Eric T. Francia said that the company would undergo corporate restructuring in the coming years. The restructuring would begin with a stock rights offering in the first quarter this year.

He added that the firm aimed to raise $2 billion in equity to exceed its 2025 target to reach 5- gigawatts of installed energy capacity. Part of the plan is to generate around 50% of energy from renewables in four years’ time.

On Friday, shares in AC Energy at the stock exchange shed 2.37% to close at P7.82 apiece. — Angelica Y. Yang

GCash operator raises over $175M in fresh capital; valuation nears $1B

Globe Fintech Innovations, Inc. (Mynt), operator of mobile wallet GCash, has raised more than $175 million in fresh capital from investment firm Bow Wave Capital Management, Ayala-led Globe Telecom, Inc. said.

“Mynt raised over $175 million in fresh capital from Bow Wave and its existing shareholders in multiple tranches, with post-money valuation of the final tranches at close to $1 billion,” Globe said in an e-mailed statement.

Globe said the fresh funding for its fintech arm will “further spur the growth of financial inclusion and the digitization of payments and financial services in the Philippines.”

The investment by Bow Wave, a close-ended private equity fund with a mandate to invest globally in online and mobile payment ecosystem companies, “will translate to a minority equity interest in Mynt,” Globe said.

The telco said its fintech arm had recorded a total transaction value of over P1 trillion last year.

“So far, GCash has empowered over 33 million Filipinos with digital financial tools and services through its innovative mobile wallet,” it noted.

Mynt President and Chief Executive Officer Martha Sazon was quoted as saying: “This investment from Bow Wave is a validation of both what we have accomplished as well as the potential of GCash in unlocking digital services in the Philippines.”

“The pandemic has acted as a catalyst in highlighting the importance of digital finance in society today and with this investment from Bow Wave, we look forward to further living out our vision of finance for all, enabling democratized access to payment and financial services to every Filipino,” she added. — Arjay L. Balinbin

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