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Ayala Land to offer up to P10 billion bonds

AYALA Land, Inc. (ALI) is issuing up to P10-billion fixed rate bonds to generate financing that will support its capital expenditure (capex) requirements.

The listed property developer filed its offer supplement with the Securities and Exchange Commission (SEC) on June 2 to issue the fourth tranche of its P50-billion shelf registration. A copy of the filing was given to the media over the weekend.

The planned offer will have a principal amount of up to P6 billion and an oversubscription option of up to P4 billion. The bonds are intended to be listed in the Philippine Dealing & Exchange Corp.

It had tapped BDO Capital and Investment Corp., BPI Capital Corp. and China Bank Capital Corp. as joint lead underwriters and bookrunners for the offer.

Should it exercise the oversubscription option, ALI expects to net some P9.87 billion from the issuance. If not, the net proceeds will be approximately P5.92 billion. This will be used to partially finance the company’s general corporate requirements, including capex.

Specifically, ALI intends to allot the proceeds for its Ayala Triangle Garden 2 project in Makati City; Central Bloc — Cebu I.T. Park in Cebu City; land acquisitions in Pampanga and Bonifacio Global City; and investments for its Parklinks project with Eton Properties.

Other projects it will finance are the One Ayala Avenue in Makati City; Vermosa Mall in Cavite; retail, outsourcing and hotel projects in Manila Bay; and land acquisitions in Pampanga, Laguna, Cavite and Bulacan.

“Costs related to the projects, in general, include various construction-related materials and services… The net proceeds from the offer, which are expected to be fully utilized in 2020, will be disbursed accordingly,” it said in its offer supplement.

The SEC said ALI had so far issued three tranches worth P21 billion from its P50-billion shelf registration.

The company announced in April it was spending P69.8 billion for capex this year, about 37% lower from its previous plan as a reaction to the coronavirus disease 2019 (COVID-19) pandemic.

Aside from the P10-billion bonds, ALI’s board of directors also approved in May a plan to offer P19-billion bonds to refinance its outstanding debt.

ALI’s earnings were down 41% to P4.3 billion in the first quarter because of a slowdown in bookings and project completions, which were affected by the Taal Volcano eruption and the lockdown measures for COVID-19.

Shares in ALI at the stock exchange closed P38 each on Friday, up 50 centavos or 1.33% the earlier day. — Denise A. Valdez

Britain’s Banksy depicts US flag on fire in Floyd tribute

LONDON — Reclusive British street artist Banksy published a new artwork online on Saturday which depicts the United States flag being set alight by a candle that forms part of a memorial to an anonymous, black, silhouetted figure.

The artwork appeared as thousands of people gathered in London and other cities around the world to protest the May 25 killing of George Floyd in Minneapolis, where a white police officer detaining him knelt on his neck for nearly nine minutes.

“People of color are being failed by the system. The white system,” Banksy wrote in a short statement that accompanied the image on the social media platform Instagram.

Banksy likened racism to a broken pipe flooding a downstairs apartment, and said the downstairs occupants would be entitled to break into the apartment upstairs to fix the problem.

“This is a white problem. And if white people don’t fix it, someone will have to come upstairs and kick the door in,” Banksy wrote alongside the image.

Banksy frequently chooses topical themes for his artworks, which are normally stenciled on walls.

Last month, he showed a young boy choosing a nurse as the superhero he wants to play with over Batman and Spiderman, in a new artwork to encapsulate the gratitude Britons have felt toward the country’s National Health Service during the coronavirus crisis. — Reuters

Cebu Pacific, Cebgo offer more local destinations

FROM three domestic destinations last week, Cebu Pacific and Cebgo said they intend to operate local flights to 17 more destinations this week until the end of the month as they try to rebuild their local route network.

Cebu Pacific Director for Corporate Communications Charo Logarta-Lagamon told BusinessWorld in a phone message on Sunday that the “planned” destinations are “subject to government approval.”

In an advisory e-mailed to reporters late Saturday night, budget carrier Cebu Pacific, operated by Cebu Air, Inc., and its subsidiary Cebgo said that “as part of the gradual rebuilding of [their] domestic route network,” they “plan to mount domestic flights to 20 destinations from June 8 to 30, 2020.”

The Gokongwei-led airlines intend to mount flights between Manila and Dipolog, Pagadian, and Zamboanga from June 8 to 30.

From June 9 to 30, they plan to operate flights between Manila and Masbate.

They also hope to operate Manila-Tablas, Manila-Davao, and Cebu-Clark flights from June 10 to 30.

From June 16 to 30, the airlines plan to operate flights between Manila and nine more local destinations such as Bacolod, Cotabato, Dumaguete, Iloilo, Catalan, Roxas, Tacloban, Bohol, and Busuanga.

They are also studying to mount flights from June 16 to 30 between Cebu and Davao.

Cebu Pacific and Cebgo operated flights between Manila and Naga, Cebu, and Cagayan de Oro last week when the government eased air travel restrictions between areas placed under a more relaxed community quarantine.

“This is a developing situation and we will have an agile approach to rebuilding our network schedule. It may be necessary for us to add or cancel flights at last minute given the fluidity of restrictions and directives from the Inter-Agency Task Force (IATF), the Local Government Units (LGUs) and other concerned government agencies,” they said.

“We will provide updates through our website and official social media accounts and endeavor to inform our passengers in a timely manner.” — Arjay L. Balinbin

VLF 2020: Exploring transnational identity

VIRGIN Labfest 2020: KAPIT — the Cultural Center of the Philippines’ theater festival of new, unstaged one-act plays, which has moved to the digital realm because of the restrictions imposed to control the spread of the COVID-19 virus — is two days away from its first online premiere.

Claro De Los Reyes’ Mongoloida’s Casa De Pun is one of the plays selected for a staged reading.

Directed by Guelan Luarca, the play follows the internal struggle of Afro-Filpina Enrica who migrated to New York City under contentious circumstances related to her upbringing. She confronts a transnational cast of historical characters who navigate life with differing world views.

“The play was first drafted in 2016 as a response to the original Black Lives Matter movement, and maybe a relationship to what Filipinos have with the idea of colorism,” Mr. De Los Reyes, who is currently based in New York, told BusinessWorld in a Zoom interview on June 2.

Of the materials Mr. De Los Reyes encountered during his research for the play, he said that he was largely influenced by African American playwright Adrienne Kennedy’s one-act play Funnyhouse of a Negro. The 1964 play is about the internal struggle with racial identity of a mixed race young woman, which uses historical figures as manifestations of her mind.

Mongoloida’s Casa de Pun, Mr. De Los Reyes said, focused on “fracturing a linear understanding of the character.”

“[It is] actually very timely for today. It asks a lot of questions in a nonlinear way about colorism in Filipino society. The idea of being dark skinned is a big theme in the play,” he said, noting that the origins of the main character are up for interpretation.

“I wanted to take that sensibility and really highlight a central character, exploring, and embodying transnational identity. So, even if they are 100% Filipino, there are different worlds that they’re occupying,” he added, citing questions of how a black Filipino, her language, her sense of identity, are received and perceived as a migrant.

The narrative veers away from the “well-made play catharsis” of following a character’s story and their goals, and by the end they either become successful or are defeated.

“I’m hoping that the experience starts a conversation as opposed to ingesting it like a story that satisfies. Hopefully it’s engaging too. But engaging in a very different way,” he said.

In the play’s cast are Kakki Teodoro, Tata Tuviera, Ybes Bagadiong, Anthony Vaughn, Teisha Duncan, Arvy Dimaculangan, Carmen Dolina, Kat Dizon, and Franny Tan.

Mongoloida’s Casa De Pun will stream live on June 24, 5 p.m.

THE ONLINE MIGRATION
For the past three months of the lockdown, the Virgin Labfest (VLF) has been preparing and adjusting to the new medium.

“I think everyone’s excited, everyone’s nervous, and everyone is just continuously expanding their patience and their understanding of what is possible,” VLF festival director JK Anicoche told BusinessWorld in a separate Zoom interview.

“Our initial invitation [was] for the artists is just to create a Zoom reading of their performances in the most basic sense. But we cannot stop artists from exploring and being at their best. And when they told us about their intention to explore things, I kind of anticipated that,” he added, noting that everyone involved has acquired new skills due to the transition.

“If it’s worth doing, maybe it’s worth overdoing. And we learn from that,” he said.

Likewise, Cultural Center of the Philippines Vice-President and Artistic Director Chris B. Millado said that the transition “can actually be an opportunity to broaden audiences through our online reach,” speaking to BusinessWorld via a Zoom interview on June 4.

“This whole situation of quarantine made me trust a singular characteristic of artists which is our sense of improvisation and adaptability,” he added.

WHERE AND HOW TO CATCH THE SHOWS
The VLF 2020’s 10 main featured plays, staged readings, and revisited plays will premiere via free live streaming on the cultural center’s official Facebook page beginning June 10.

Recorded versions of the shows will be streamed on the Vimeo website and app beginning June 14 to 28. Viewers can set up an account then search for Cultural Center of the Philippines or VLF Kapit for access to the shows.

The festival also offers series packages: a Regular Series Package (P100) which includes VLF 2020: KAPIT productions of the 10 new featured works, three revisited plays, and five staged readings); while the Premium Series Package (P200) includes all performances, and interviews with playwrights, directors, designers, and behind-the-scenes footage. (To purchase the packages, go to https://vimeo.com/ondemand/vlf2020kapit or https://vimeo.com/ondemand/vlf2020kapitpremium.)

“After paying a fee and watching a show, each show would have a Pass the Hat button, where if [audience members] really love the experience, they can donate either in cash or kind. Whatever is collected at the end of each show will go directly to the cast and crew involved in that production,” Mr. Millado said.

Aside from the revisited plays and staged readings, the VLF Playwright’s Fair and Virgin Labfest 2020 Writing Fellowship Program will stream via CCP’s official Facebook page.

The VLF Playwright’s Fair online will feature this year’s playwrights talking about their work. It will be held on June 11-14, 17-20, 25-27 at 8 p.m. Participating in the event as panelists are playwrights Allan Lopez, Liza Magtoto, Layeta Bucoy, Maynard Manansala, Chuckberry Pascual, U Z. Eliserio, Dustin Celestino, Eljay Castro Deldoc, Guelan Luarca, Vlad Gonzales, and Nicolas Pichay. Writers Dingdong Novenario, Luna Sicat Cleto, and Visconde Carlo Vergara will have solo talks, while Sari Saysay will render an online reading.

Meanwhile, the Virgin Labfest 2020 Writing Fellowship Program will culminate in an online staged reading of the fellows’ works on June 28 at 2 and 5 p.m. When schedules overlap, the featured performances will stream on the cultural center’s official Facebook page while the VLF Playwright’s Fair will stream at the official VLF Facebook page (https://www.facebook.com/thevirginlabfest).

For more details and show schedules, visit https://www.facebook.com/culturalcenterofthephilippines/ and https://www.facebook.com/thevirginlabfest/, or join https://www.facebook.com/groups/VLFTambayan/. — Michelle Anne P. Soliman

ERC clears new AC Energy supply rate

THE Energy Regulatory Commission (ERC) approved the appeal of AC Energy Philippines, Inc. (ACEPH) to charge Manila Electric Co. (Meralco) a P4.99 per kilowatt-hour (kWh) rate for 60% contracted capacity, which it said is relatively lower compared to the utility’s former supply contracts.

In a recently published ruling, the regulator revised its former order regarding the power supply agreement (PSA) between the two power companies, taking into consideration AC Energy’s plant capacity factor (PCF) and its proposed contract price in the electricity fee structure of their contract.

According to AC Energy, the former provisional authority rate that the ERC approved on Dec. 10, 2019 is different from the price and capacity that it agreed with Meralco in their PSA.

In their supply agreement, the two companies agreed on a 45% minimum energy offtake priced at P6.48/kWh and a P4.9873/kWh rate for a 60% contracted capacity.

The ERC said it did not consider the PCF as it was still subject to clarification when the order was issued.

Meralco’s terms of reference were made in a way that provides it some flexibility to procure electricity requirements from 45% to 60% PCF, AC Energy said.

Without consideration of its PCF as a mid-merit supplier, the former order increases the market risk of the generation company, it said.

“Meralco is given the ability to efficiently manage its supply requirements based on available least-cost supply to the benefit of its consumers. On the other hand, ACEPH will also be able to reasonably recover its investment cost and operating cost,” the ERC said, affirming the appeal for reconsideration.

The new approved rate is P0.75 higher compared to ERC’s former order which approved a rate of P4.2366/kWh.

It noted that the latest rate is “relatively lower” and “more stable” compared to those under Meralco’s expired contracts.

Further, the ERC allowed the retroactive application of the rate as it is also permitted in their PSA.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Adam J. Ang

REP’s theater workshops go online

OVER the three months of the lockdown, people have had the opportunity to enjoy recorded theatrical productions. Now, intensive theater workshops have also transitioned online.

Next month, Repertory Philippines will offer its theater workshops online from July 6 to 31.

“This is encouraging news, signaling how much theater has become a pervasive part of our workshop students’ lives and how much interest it has generated in newcomers,” Repertory Philippines Artistic Director Liesl Batucan told BusinessWorld in an e-mail. “We hope to continue the online workshops all-year round.”

REP’s Workshops for the Performing Arts include musical theater classes covering the basics of acting, singing, and dancing. Enrollees will be grouped by age: Kiddies (ages four to eight), Pre-Teens (ages nine to 12), Teens (ages 13-16), and Adults (ages 17 and above). Special classes will also be offered for voice, and dance and movement designed for musical theater performance.

REP is also launching its first class on costume design. It is open to people aged 16 and above. Workshops on Costume Design for Children’s Theater Musicals will be facilitated by three-time Gawad Buhay for Outstanding Costume Design nominee Raven Ong.

Enrollment is now open for the Musical Theater classes, special classes in voice, and special classes in Dance and Movement. The class fees are P6,000. The costume design class costs P8,000.

For more information, visit bit.ly/2zMOV14 or e-mail Marketing@Repphil.org or Repphilfoundation@gmail.com. For more updates, like and follow repertoryphilippines on Facebook and Instagram. — MAP Soliman

Fintech support sought for small firms

THE Philippine arm of an Asia-Pacific business council is urging the country to take on financial technology tools to assist small businesses recovering from the effects of the coronavirus disease 2019 (COVID-19) pandemic.

The Asia-Pacific Economic Cooperation Business Advisory Council (ABAC) had a series of virtual discussions in May and June to develop recommendations to address the health and economic impacts of the pandemic.

The Philippines advocated for boosting financial inclusion for micro, small, and medium-sized enterprises (MSMEs), ABAC Philippines said in a press release on Friday.

“A number of innovative solutions in providing financial relief and assistance for SMEs such as in insolvency regimes and digital IDs, can be leveraged effectively when the technologies and systems are in place,” ABAC PH member and co-chair of ABAC’s Finance and Economics Working Group Joanne de Asis said.

She said that, among ABAC members, fintech entities should have access to support from the government. Members should also upgrade and digitize systems for access to finance and asset management, and develop standardized or manual tool kits for small businesses to operate once lockdown restrictions are relaxed.

ABAC PH member Francis Chua said small businesses need strategic interventions.

“What our SMEs need is not temporary relief, but support mechanisms to build their capacities, to have access to finance and to tap new markets,” he said.

Sabin M. Aboitiz, Aboitiz Equity Ventures, Inc. president and chief executive officer, said that digital technology is critical.

“Business, big and small, as well as communities should embrace digital transformation if we are to compete let alone survive in a post-COVID environment,” he said.

ABAC in its response to the crisis is focusing on four issues, including digital technology, supply chain resilience, open markets for goods and services, and MSME support.

The council discussed trade barriers to essential goods, digital infrastructure for work and education, and data privacy. — Jenina P. Ibañez

Bridal fair goes online

JUNE is the traditional month for bridal fairs, giving the prospective bride and groom at least six months to get their wedding together before the most popular period for Philippine weddings — December to February when the weather is cooler and chances of rain much reduced. But the coronavirus, as it has with most aspects of life, has thrown a greasy spanner at all the white lace and promises, as both weddings and bridal fairs find themselves in limbo thanks to quarantines, social distancing, and the need to wait for a functional vaccine. But just like other aspects of life, the digital world has provided a lifeline.

The hotel Conrad Manila has mounted its first ever “Online Wedding Fair,” done in partnership with Bridalpod.ph. It is ongoing until June 14 at Bridalpod.ph Online Wedding Fair. .

In a press release, the hotel points out that the “‘virtual event’ marks a milestone where soon-to-wed couples can have memorable, safe and convenient ways to plan their inspired wedding celebration with some of the wedding industry’s best brands, and work with the most professional and creative minds on the biggest day of their life.”

Like a bridal fair in normal times, the virtual fair offers exclusive hotel wedding packages, as is a venue for couples and wedding planners to search for providers of all aspects that make up a wedding: the gown, flowers, makeup artist, photographer, videographer, stylists, etc.

Among the features on Bridalpod.ph are Interactive virtual halls and booths, mobile-first responsive design available on any device, suppliers grouped by category/ field and their respective portfolios, and, of course, the discounts, special promotions and packages which draw couples to fairs.

The Conrad Manila is a popular choice for weddings, and when times get better, brides and grooms will be able to hold their weddings at the pillar-less Grand Ballroom (it can accommodate up to 500 guests for a sit-down dinner and up to 900 for cocktails) assured that the hotel will be following “stringent health and safety measures in accordance with global and government standards including social distancing practices.” And as experts are now saying that the COVID-19 video is less transmissible in open-air venues, the hotel also has a 2,300 sq.m. outdoor space “with sweeping views of the city landscape” for open-air wedding ceremonies and cocktail receptions.

The Bridalpod.ph Online Wedding Fair can be found at https:/bit.ly/BridalpodConradManila.

OUTLIER: Profit taking drags Globe Telecom stock lower

By Lourdes O. Pilar, Researcher

PROFIT taking drove much of Globe Telecom, Inc.’s stock activity last week.

Globe was the 14th most actively traded stock last week with a total of 526,610 shares worth P1.14 billion having exchanged hands on the trading floor during the week from June 1 to 5, data from the Philippine Stock Exchange showed.

Shares in Globe closed at P2,170 apiece on Friday, down 5.4% on a week-on-week basis. Year to date, however, the stock is still up by around six percent.

“Start of [last] week, Globe Telecom was the third-best performing stock in the PSEi (Philippine Stock Exchange index) with a year-to-date gain of 13.6%. We believe the company was one of the most actively traded stocks as investors locked in their gains and perhaps rotated to some of the laggards,” said Philippine National Bank (PNB) Senior Equity Research Analyst Jonathan J. Latuja in an e-mail.

“Consequently, Globe Telecom was the second-worst performing stock in the PSEi last week,” he added.

In a regulatory filing earlier last month, the Ayala-led telecommunications company reported its core net income for the first quarter — which excludes the impact of non-recurring charges, one-time gain, foreign exchange gains and mark-to-market charges — stood at P6.6 billion, a 3% decline from P6.73 billion in the same period a year ago.

Earlier last month, the Ayala-led telecommunications company reported a three-percent decline in its first-quarter core net income — which excludes the impact of non-recurring charges, one-time gains, foreign exchange gains, and mark-to-market charges

“The implementation of the extended community quarantine partially affected Globe’s performance in the first quarter. We expect earnings to further decline in the second quarter as the stay-at-home measure resulted in a reduction in mobile data usage,” Mr. Latuja said.

“However, the surge in demand for home broadband will partially offset the weakness of the mobile segment. We expect that the company will continue to preserve its cash in favor of funding its monthly operating expenses and working capital. We expect full-year 2020 earnings to decline by four percent,” he added.

Globe said its capital expenditure guidance for the next quarter would likely be lower by at least P2 billion from the first quarter’s spending given the delays it is experiencing with its network rollout due to the community quarantine.

“Investors might continue to take profits on Globe as investors participating in [the stock market rally] might prefer to take advantage of stocks that have not yet significantly bounced from their lows,” Mr. Latuja said.

In a separate e-mail, Mercantile Securities Corp. Analyst Jeff Radley C. See noted Globe’s slight drop in net income, but said this was expected due to the adverse effects brought by the pandemic.

“The company has limited movement thus having a slight weakness in its financials. I am not afraid for Globe with their second-quarter income since they are not that affected by the pandemic as compared to other industries,” said Mr. See.

Mr. See placed the stock’s support and resistance levels at P2,080 and P2,300, respectively.

For his part, PNB’s Mr. Latuja provided a discounted-cash-flow target price of P2,330, or a 7.4% upside based on Friday’s closing price.

Winging it: Paris gallery keeps visitors apart with extension hats

PARIS — An art gallery in Paris has sought inspiration in ancient China to help it enforce social distancing, by providing hats with winged extensions for visitors.

The colorful papier-mâché hats are modeled on headgear from the Song dynasty, which ruled China between 960 and 1279, with extensions just long enough to keep wearers the one meter (three feet) apart stipulated in France’s COVID-19 regulations.

The first Song emperor is said to have ordered his officials to wear winged hats so that they could not gossip without being heard.

“Back in the day, these were worn to prevent public officials from whispering,” Dominique Pouzol, who designed the hats for the 59 Rivoli gallery, told Reuters. “And so, there was already then this notion of social distancing.”

Some of Pouzol’s creations carry a political message too, painted in the colors of the rainbow is a nod to gay rights.

“The hats are to protect us from COVID-19,” Pouzol said. “But I said to myself perhaps they can also shield us from… human viciousness, from small-minded people.” — Reuters

Bustos Dam rehab given green light

REHABILITATION of the damaged Bustos Dam in Bulacan has been approved for repairs under warranty, the National Irrigation Administration (NIA) said.

In a statement Sunday, NIA said a coffer dam will be constructed as a temporary replacement for the damaged Rubber Bladder in Bustos Dam’s Bay No. 5.

The NIA said the construction of the coffer dam will be executed by the consortium of ITP Construction, Inc. and Guangxi Hydroelectric Construction Bureau Co. Ltd.

NIA inspected Bustos Dam on May 13.

It said the contractor has completed all preparatory works to repair the dam’s rubber bladder.

The Notice to Commence Work was issued to the contractor after NIA approved the plans from the Regional Office.

The dam’s damaged rubber bladder is covered by the contractor’s 20-year warranty policy which is in force until 2037. — Revin Mikhael D. Ochave

SEC to limit physical contact in pandemic

The Securities and Exchange Commission (SEC) will be limiting the physical operations of its registration department to select services as the coronavirus disease 2019 (COVID-19) pandemic persists.

In a notice on its website, the corporate regulator said it would be accommodating most services related to company applications via e-mail, despite resuming work for its Company Registration and Monitoring Department (CRMD) at the SEC headquarters.

Examples of services to be entertained through e-mail are petitions to lift order of revocation/suspension, submissions of supplemental requirements for registrant corporations, applications for amendment of articles of incorporation, and requests for issuance of certificate of paid up capital.

The physical operations of CRMD will be limited to receiving proof of payment and documents related to the processing of a company’s registration, releasing of certificates of incorporation, releasing of orders such as petitions to lift order of suspension, and registration of stock and transfer/membership book.

“These guidelines and procedures shall take effect immediately and until further notice as the general quarantine situation improves,” the SEC said.

The SEC reopened CRMD for physical operations since the last week of May, but on limited operating hours: Monday to Thursday, 9:00 a.m. to 4:00 p.m.

Before reopening parts of its physical office, the regulator has maintained remote operations through the duration of the lockdown to accommodate corporate transactions.

While its CRMD office is back to physical operations, the SEC continues to observe safety protocols such as wearing face masks and maintaining physical distancing to protect its personnel from contracting COVID-19.

It has also started requiring companies to submit annual reports, audited financial statements and general information sheets via courier to limit face-to-face interactions.

In a May 11 memorandum circular, the SEC said it is implementing these stringent measures to “provide adequate protection to the frontline service personnel… from undue exposure to the risk of COVID-19.”

Quarantine measures in Metro Manila have eased twice since May to restart the economy despite the ongoing threat of the coronavirus. The Health department reported 714 new COVID-19 cases on Saturday, bringing the country’s total to 21,340. The virus has so far killed 994 in the Philippines. — Denise A. Valdez

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