AgriNurture receives ‘Medium Green’ rating for 75-M euro bonds

March 30, 2021 | 12:02 am

ANTONIO L. TIU-led AgriNurture, Inc. (ANI) announced that it had received a “Medium Green” rating from an international research and rating agency for its planned 75-million euro green bonds.

The listed agricultural firm said in a statement on Monday that the rating given by Cicero Shades of Green is for “projects and solutions that represent steps toward the long-term vision.”

ANI seeks to issue up to 75 million euros of green bonds with a maturity of up to seven years.

Proceeds from the green bonds will be allocated to ANI’s agricultural project expansion related to climate change adaptation and reduced environmental footprint, and for the improvement of production and trade of organic produce.

“ANI has previously secured the authority to issue the long-term green bonds as well as the issuance of commercial papers, with terms and conditions to be recommended by management and to be approved by the Board of Directors,” the statement said.

According to ANI, the rating showed that it has strong governance procedures and ambitions to further improve.

Some of the company’s targets include being climate neutral by 2030 and other initiatives on renewable energy and organic farming, all of which are part of its commitment to be a top sustainable producer of organic agricultural food products.

ANI said Cicero Shades of Green provides independent evaluations on green bond investment plans to determine their environmental strength. Its ratings also give investors a view of the environmental quality of green bonds.

Current and upcoming projects of ANI include organic farming, renewable energy, energy efficiency, environmentally sustainable management of living natural resources and land use, clean transportation, and digital agriculture.

Brands under ANI include Big Chill, Tully’s, Cheesecake Etc., and Fit Bites. The company exports its products to countries in Asia, Middle East, Europe, and North America.

On Monday, shares of ANI at the stock exchange rose 1.14% or eight centavos to end at P7.08 each. — Revin Mikhael D. Ochave

Damosa Land hopeful as signs of recovery seen

March 30, 2021 | 12:01 am

By Jenina P. Ibañez, Reporter

DAMOSA LAND, Inc. is expecting recovery this year after the coronavirus disease 2019 (COVID-19) caused a slowdown across its property segments.

The Davao-based property developer started seeing an uptick in business at the end of the third quarter last year, Damosa Land President Ricardo F. Lagdameo said in an online interview on Friday.

The real estate arm of the Floirendo-owned Anflo Management and Investment Corp. offers residential, office, commercial, tourism, and industrial spaces.

“For instance, residential sales have actually been quite decent considering the whole situation. Inquiries to our other projects, whether it was our offices, our industrial spaces — inquiries already started to really pick up in the fourth quarter of last year,” Mr. Lagdameo said.

Some segments hit hard by the pandemic, including the loss of foot traffic for commercial spaces and tourism, have also seen slight recovery. Some new tenants and visitors have started occupying their commercial and hospitality spaces respectively, he said.

“If we hit our targets for this year — there are certain milestones we need to hit — we’ll actually match our 2019 numbers this year already,” Mr. Lagdameo said.

The milestones, he said, include finishing and turning over residential construction delayed last year, leasing out 15-20% of its newly completed office space, and selling or making long-term leases on two to three hectares of its industrial park.

The office sector maintained some resiliency last year due to business process outsourcing, Mr. Lagdameo said, while the hospitality segment suffered.

Davao remains an outsourcing hub outside Metro Manila due to its skilled manpower, with 2021 office recovery likely to be led by demand from both traditional and outsourcing occupants, Colliers Philippines said in a December report.

Damosa Land has been receiving an uptick in outsourcing inquiries starting in the fourth quarter last year, especially with renewed business confidence among United States firms after the country’s COVID-19 vaccine rollout started. The interest, however, is still far from pre-pandemic levels.

Meanwhile, the company is still in talks with two foreign agri-industrial firms that could locate at its Anflo Industrial Estate in Panabo City.

“We’re looking to close these in the second quarter of this year,” he said of the European and Asian companies.

“If we are able to bring in these two locators in the next couple of months, these will probably be the biggest deals to date that we’ve done for the company,” he added, referring both to the space they will occupy and the size of the investments.

Outstanding debt rises to P10.4 trillion at end-February as gov’t borrowings increase

March 30, 2021 | 12:01 am

THE GOVERNMENT’S outstanding debt inched up by 0.8% to P10.405 trillion at the end of February from the month prior, the Bureau of the Treasury (BTr) reported.

Latest BTr data showed the government’s debt stock rose from the P10.327 trillion recorded at end-January, after more borrowings last month. Meanwhile, the debt pile climbed by 27.4% from the P8.166 trillion seen as of February 2020 and by 6.2% from the P9.8 trillion level at the start of 2021.

Of the P10.41-trillion debt stock, 71% were sourced from local creditors and the rest were from foreign lenders.

Outstanding domestic obligations went up by 0.5% from the month-ago level to P7.363 trillion as of February due to increased borrowings that month. Year on year, it jumped by 35.1%.

Since the year started, the local debt pile rose by 10% because of the P540 billion in provisional advances from the Bangko Sentral ng Pilipinas (BSP) in January.

Government securities issued to the domestic market stood at P6.822 trillion last month, up 1.9% month on month and 25.2% higher year on year.

Meanwhile, the external debt stock went up by 1.4% to P3.043 trillion as of February from P3 trillion in January. Year on year, foreign debt grew by 12% from the P2.72 trillion seen at end-February 2020. However, the external debt stock went down by 1.9% since the year began as the government repaid some of its maturing debts.

The BTr attributed the monthly increase in external outstanding debt to the new foreign loans worth P14.53 billion and foreign exchange adjustment worth P36 billion after the peso weakened to P48.653 per dollar last month from P48.076 the month before. However, the net appreciation of the peso versus third currencies trimmed the overall debt by P9.7 billion.

The outstanding foreign debt was comprised of P1.36 trillion in direct loans and P1.68 trillion in global bonds issued so far, broken down into P1.34 trillion in dollar-denominated bonds, P115 billion in euro bonds, P112 billion in Japanese samurai bonds, P85 billion in peso global bonds, and P30 billion in Chinese panda bonds.

Meanwhile, total guaranteed obligations went down by 2.1% from the month prior to P446.72 billion in February after the BTr’s net redemption of local and foreign guarantees worth P9.99 billion and P340 million, respectively.

“Third-currency exchange rate fluctuations further lowered the peso value of external guarantees by P1.77, slightly offsetting the P2.43 billion effect of local currency depreciation against the dollar,” it added.

Year on year, outstanding guaranteed debt fell 7.8% from P484.36 billion.

The country’s outstanding debt was equivalent to 54.5% of gross domestic product (GDP) last year, up from the record low of 39.6% in 2019, after the government ramped up borrowings to plug its ballooning deficit amid the global health crisis.

The government is planning to raise P3 trillion this year from domestic and external lenders to help fund its budget deficit seen to hit 8.9% of GDP.

Official estimates showed the government’s debt stock could rise to P11.98 trillion by end-2021. — B.M. Laforga

Cebu’s first indoor dog park opens

March 30, 2021 | 12:01 am

ROBINSONS Malls has opened its second dog park — and Cebu’s first indoor dog park — at Robinsons Galleria Cebu. The dog park, located at the second level of Robinsons Galleria Cebu, has an array of colorful agility equipment. Created in partnership with TopBreed, the spacious dog park was created for pets to freely play, exercise and enjoy quality time with their owners. It’s also a safe space for dogs to socialize with other dogs and humans. Use of this new mall amenity is free, Users are encouraged to become Happy Pets Club members, and enjoy exclusive invites to pet events, special giveaways and discount perks. To join, visit the nearest Robinsons Mall branch, fill-out the registration form, and submit the updated vaccination records and photo of the pet.

First Philec to roll out ‘super green’ transformer this year

March 30, 2021 | 12:01 am

DISTRIBUTION transformer manufacturer First Philec, Inc. is set to launch a “super green” transformer model made out of a 100% recyclable and biodegradable materials in the market this year.

First Philec, a wholly owned subsidiary of the Lopez-led First Philippine Holdings Corp. (FPH), said that it had scheduled the transformer’s rollout in the fourth quarter of 2021, initially for the local market.

In a press release on Monday, First Philec President Ariel C. Ong was quoted as saying that the company’s new transformer model offers the “highest efficiency” in its class and allows for extended product life use, aside from helping customers to reduce their carbon footprint.

“All metallic parts of our upcoming transformer model are recyclable; while all its non-metallic components will be biodegradable or recyclable,” Mr. Ong said.

“The new transformer model will use an insulating coolant from natural ester, which is a vegetable-based and non-polluting oil product from renewably sourced and sustainably grown crop seeds. Any accidental release of the transformer’s non-metallic parts poses no risk to the environment due to its full biodegradability,” he added.

The “super green” transformer also features an amorphous core, a magnetic material which will contribute to higher efficiency levels and lower losses, according to First Philec Customer Development Head Luis Antonio D. Trinidad.

Mr. Trinidad said that the firm’s new transformer model is seen to “reduce distribution losses and improve distribution efficiency to create savings, and this will benefit distribution utilities and their customers.”

Standard manufacturing practices in many countries rely on petroleum and single-use plastic packaging, among others, Mr. Ong noted. But the firm’s use of environment-friendly raw materials and avoidance of plastic waste will mark a departure from this practice, he said.

The firm is still finalizing the price of the transformer model.

First Philec has installed 250,000 transformers across the country, and currently has two plants inside the First Philippine Industrial Estate in Batangas.

FPH, the parent firm of First Philec, earlier said that its attributable net income last year slid 22% to P9.9 billion as revenues dropped due to the economic disruptions caused by the global health emergency.

FPH’s major business segments are in manufacturing, power generation, real estate development, and construction and other services.

Shares of FPH in the local bourse. improved 1.20% or 85 centavos to finish at P71.45 apiece on Monday. — Angelica Y. Yang

2GO Group, Inc. sets schedule of virtual stockholders’ meeting

March 30, 2021 | 12:00 am

Philippines ranks 110^th in terms of protecting children’s welfare

March 30, 2021 | 12:00 am

How PSEi member stocks performed — March 29, 2021

March 30, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, March 29, 2021.

Peso climbs on signing of tax reform law

March 29, 2021 | 9:00 pm

THE PESO strengthened versus the greenback on Monday following the passage of a key tax reform law and a decline in oil prices.

The local unit closed at P48.415 per dollar yesterday, gaining 7.5 centavos from its P48.49 finish on Friday, data from the Bankers Association of the Philippines showed.

The peso opened Monday’s session at P48.47 versus the dollar. Its weakest showing was at P48.51, while its intraday high was its close of P48.415 against the greenback.

Dollars exchanged declined to $576.4 million yesterday from the $740.8 million seen on Friday.

The peso strengthened on the back of the signing of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act on Friday, a trader said.

Republic Act 11534 was signed by President Rodrigo R. Duterte on Friday. It will immediately bring down corporate income tax to 25% from 30% and will further cut it by a percentage point every year from 2023 to 2027 until it reaches 20%.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the peso’s appreciation to lower oil prices.

“[T]his could reduce the country’s oil imports,” Mr. Ricafort said in a text message.

After four sessions of price swings, oil prices slightly stabilized on Monday as continued efforts to dig out the giant container ship clogging the Suez Canal eased market worries, Reuters reported.

Brent oil slipped 0.3% or 18 cents to $64.39 a barrel by 0141 GMT while the price of US crude dropped 22 cents or 0.4% to $60.75 per barrel.

For today, the trader expects the local unit to move within P48.30 to P48.50 per dollar, while Mr. Ricafort gave a forecast range of P48.36 to P48.46. — L.W.T. Noble with Reuters

PHL stocks rise on bargain hunting, CREATE Act

March 29, 2021 | 9:00 pm

PHILIPPINE SHARES closed in the green on Monday on bargain hunting ahead of the Holy Week break and improved sentiment following the signing of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

The benchmark Philippine Stock Exchange index (PSEi) gained 63.15 points or 0.96% to close at 6,607.78 on Monday, while the broader all shares index went up by 20.30 points or 0.51% to 3,988.09.

“The market proved its resiliency as it ended higher despite starting the day with a substantial loss. The tightening of quarantine restrictions caused some panic selling at the open, however, buyers were quick to come in and pick up shares at cheaper prices,” Christopher John J. Mangun, research head at AAA Southeast Equities, Inc., said via e-mail.

“The optimism may be coming from the government’s commitment to the economy’s recovery despite the recent setback,” Mr. Mangun added.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said bargain hunters took advantage of the market’s decline earlier on Monday and from the previous trading day.

“Malacañang’s signing of the CREATE Act into law also helped spur optimism in Monday’s trading,” Mr. Tantiangco added.

The CREATE Law, signed by President Rodrigo R. Duterte on Friday, reduces the country’s corporate income tax rate to 25% from 30%. It will further slash the rate by a percentage point every year from 2023 to 2027 until it reaches 20%.

Mr. Duterte vetoed some sections of the measure, including one that allows incumbent and future presidents to exempt an investment promotion agency from CREATE’s coverage and another section that increases the threshold of low-cost housing eligible for value-added tax exemption to P4.3 million from P2.5 million.

Majority of the PSE’s sectoral indices closed in the green on Monday, except for mining and oil, which declined by 42.99 points or 0.49% to 8,590.95; and industrials, which fell by 25.22 points or 0.29% to 8,565.50.

Meanwhile, property increased by 72.45 points or 2.21% to finish at 3,349.41; financials went up by 19.05 points or 1.35% to 1,420.69; holding firms gained 38.02 points or 0.57% to 6,643.42; and services rose by 4.75 points or 0.33 to close at 1,440.73.

Value turnover increased to P7.27 billion on Monday with 2.88 billion shares switching hands, from the P6.28 billion with 4.91 billion issues traded on Friday.

Decliners outnumbered advancers, 116 against 97, while 44 names closed unchanged.

Foreigners turned buyers, with net inflows amounting to P30.43 million on Monday, versus the P724.71 million in net foreign outflows logged on Friday.

“Despite the gains, we are not out of the woods yet as the main index is coming up against resistance at 6,600 to 6,700,” AAA Southeast Equities’ Mr. Mangun said. “We may see it give back some gains in the coming days.” — Keren Concepcion G. Valmonte

PHL tariff revenue losses from RCEP deal expected to be mild

March 29, 2021 | 8:14 pm

THE GOVERNMENT is expected to forego tariff revenue of over $58 million a year from the 15-country Regional Comprehensive Economic Partnership (RCEP) trade deal, among the smallest projected losses in the region, Boston University (BU) said, citing the findings of a study.

These losses are milder than the foregone revenue to be experienced by other ASEAN countries. The trade pact binds all 10 ASEAN countries and major trade partners and was signed in November.

“Simulation for tariff liberalization under RCEP shows that tariff revenue loss post-RCEP will be highest for Malaysia, which will lose around $2.1 billion per annum, followed by Thailand with tariff revenue loss of $800 million,” BU said.

According to the working paper RCEP: Goods Market Access Implications for ASEAN published this month, Cambodia and Vietnam will sustain tariff revenue losses of $334 million and $192 million per year, respectively.

Developing countries are facing health and economic threats due to the pandemic, the report said, adding that it is now important for the economies to revisit trade policies.

“Tariffs are the most simple and efficient tools in the hands of the governments for raising financial resources at the times of crisis, protecting valuable domestic financial resources from being wasted on imports of luxury items, protecting domestic firms from unreasonable competition, and protecting the livelihoods of their citizens.”

The report said that the balance of trade will deteriorate for ASEAN countries, but will improve for countries like Japan and New Zealand.

“The reason for deterioration of BoT (balance of trade) of most of the ASEAN countries is trade diversion within the RCEP group towards more efficient exporters which adversely impacts the existing exports of ASEAN countries. This will lead to a decline in intra-ASEAN trade as ASEAN countries import from more efficient exporters like China instead of other ASEAN countries,” BU said.

The percentage change in balance of trade for the Philippines post-RCEP is a 1.1% decline, equivalent to $260 million each year. ASEAN countries in total stand to lose $8.5 billion each year in their goods trade balance post-RCEP.

Imports to the Philippines will increase by more than $148 million each year. In ASEAN, the largest increase will be seen in Malaysia and Cambodia at $3.7 billion and $2.3 billion, respectively.

“Around half of the increase in imports of Malaysia, Myanmar and Philippines post-RCEP will be from China,” BU said, adding that the Philippines will experience a fall in imports from all ASEAN countries but higher imports from China and South Korea in products like arms and ammunition and electrical equipment.

Philippine exports to RCEP countries are also expected to fall, because of “trade diversion in favor of more efficient exporters within the RCEP.”

The study was conducted by United Nations Conference on Trade and Development (UNCTAD) Senior Economic Affairs Officer Rashmi Banga, UNCTAD Consultant Prerna Sharma, and BU Professor of Global Development Policy Kevin P. Gallagher.

According to the Trade department, the bulk of imports under RCEP are raw materials and intermediate goods, which Philippine manufacturers will be able to buy at cheaper rates.

The department has been promoting the deal as an export market access advantage for the country’s exports in garments, automotive parts, and agricultural products such as canned food and preserved fruit. — Jenina P. Ibañez

WFH staff seen at 34% of workforce by 2023

March 29, 2021 | 8:14 pm

FULL-TIME EMPLOYEES working from home are expected to account for 34% of the workforce by 2023 compared to 3% in 2017, triggering real estate spending cuts and generating transport savings, according to advisory firm Willis Towers Watson, citing the results of a survey.

The survey, conducted in October and November, found that the pandemic pushed Philippine employers “to consider remote work and other flexible work arrangements. This practice will most likely continue as part of the new normal as companies realize that flexible work arrangements play a significant role in employee productivity and engagement,” Willis Towers Watson Philippines Head of Talent and Rewards Patrick Marquina said in a statement Monday.

The company surveyed 434 Asia Pacific organizations, including 47 Philippine firms.

Around 95% of the Philippine companies said that employee safety concerns motivated the shift to alternative work arrangements. With 35% using flexitime, 66% of companies said flexibility promotes employee retention.

Almost half of the companies said that savings will come from real estate, while a third expect savings from expenses connected to work commutes.

“Some of these savings are being channeled to facilitate the necessary changes to the companies’ total rewards programs, such as equipping employees to work from home or for the health and wellbeing programs to support employees in a more agile and flexible workplace in the future,” Willis Towers Watson said.

But the survey also found that three out of five respondents believe flexible work will not impact overall pay budgets, although almost half said new requirements will require a “hybrid” model for pay and rewards.

Companies have also not fully adapted to alternative work arrangements, with almost a fifth saying that they do not have policies to manage flexible work. Two thirds created a formal policy just last year.

The survey also found that 30% of firms have an integrated digital and business strategy.

“An integrated work strategy supported by technology and strong digital capability will enable companies to maximize the full potential of emerging work arrangements,” Mr. Marquina said.

“Employers now need to take a step back and examine the future state of their organization overall and decide how they can make the most of their new agile workforce.” — Jenina P. Ibañez