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Gotianun’s Filinvest studies bond, equity offering

GOTIANUN-LED Filinvest Development Corp. (FDC) is planning to raise capital this year through both debt and equity measures in the local and offshore markets.

In the company’s annual stockholders’ meeting held virtually Monday, FDC President and CEO L. Josephine G. Yap said the company is currently studying capital raising initiatives to support business expansion.

“We are considering reviving our bond offering now that the (lockdown) has been lifted. We’re evaluating both peso- and US dollar-denominated bonds given the attractive rates,” she said, referring to FDC’s deferred plan to float an P8-billion bond in March.

Ms. Yap added FDC is “especially keen to raise equity… to unlock its untapped value and share it to the public.” FDC’s public float is 10.8% at present and Ms. Yap said the company is just waiting for the right timing for an offering.

FDC has set its budget for capital expenditures this year at P25.7 billion, which it intends to use to support expansion and diversification efforts. Ms. Yap also said FDC is looking out for possible acquisitions.

“To maintain this posture, it is imperative to strike a careful balance of equity and debt,” she said.

The company’s equity stood at P132 billion at the end of the first quarter, with its net debt-to-equity ratio at 0.54:1.

During the three-month period, amid the coronavirus disease 2019 (COVID-19) pandemic, FDC posted an 8% increase in earnings to P3 billion. Its banking unit led the growth with a P2.3-billion contribution, higher by 75% from last year.

Ms. Yap said despite the continuing rise in its financials, FDC will be more cautious and will adopt a “more flexible short-term planning process, while still being mindful of our medium-term strategy.”

Focus will be on strengthening recurring income base such as power, office and logistics leasing and new investments in renewable energy.

“Our strategy is to optimize our existing asset base while leveraging on digital and technology to answer to the changing needs of our markets,” Ms. Yap said.

Among the plans FDC expects to materialize this year are recognizing income from its P15-billion multi-tower mixed-use complex in Filinvest City by the second quarter, and completing the 64-hectare phase 1 of Filinvest Innovation Park in New Clark City by the second half.

“Our disciplined and strategic approach to financial management has prepared us for this current global health and economic crisis. The resilience of our management teams and experience surviving several global and local crises have provided us some invaluable insights,” Ms. Yap said.

Shares in FDC at the stock exchange closed two centavos or 0.25% lower at P8.10 apiece on Monday. — Denise A. Valdez

RWM complex getting ready to open with ‘smart disinfection’ and ‘anti-virus patrols’

INTEGRATED casino-resort Resorts World Manila (RWM) has applied stringent measures to ensure the health and safety of its guests and employees as the 3,600-room complex and its facilities prepare to reopen in the new normal.

“The Resort World Manila management team has been looking far ahead about how we’re going to ensure that our guests continue to have the seamless experience when they visit the resort and how we can ensure our touchpoints are covered from safety [and] security. Ultimately, we want to give world-class service with a Filipino touch to the best of our ability, which we’ve always done in the last 10 years,” Stephen Reilly, RWM’s COO, said in a digital briefing on June 19.

The casino-resort complex in Pasay City is composed of the main Newport City mall (which also houses its casino and theater) and seven hotels: international hotel brands Marriott Hotel Manila, Sheraton Manila Hotel, Hilton Manila, Holiday Inn Express Manila (HIEx Manila), and Filipino hotel brands Belmont Hotel Manila and Savoy Hotel Manila. Also included in the hotel list is the soon-to-open Hotel Okura.

During the briefing, executives from each hotel outlined the safety measures they are taking which includes global safety programs from the international hotel chains — the Marriott Global Hotel Cleanliness Program for both Manila Marriott and Sheraton Manila, Hilton’s CleanStay program, and HIEx Manila’s guidelines for COVID-19 prevention following the direction of the Intercontinental Hotel Group’s guidelines -— while local brands Savoy Hotel Manila and Belmont Hotel Manila have their Stay Safe programs.

The said efforts are being done in collaboration with hygiene and sanitation brands Lysol, Ecolab, and Diversey.

“The first thing we had to do was change our mindset [in order] to prepare for this new normal. And the new normal is ever changing — it could be different tomorrow then the following weeks, until we get to the degree of real normality,” Mr. Reilly said.

The reopening of the hotels is still up in the air as the Department of Tourism only allows hotels to open once a city or region is under a looser form of lockdown called modified general community quarantine.

The department also requires hotels to acquire a permit before resuming operations.

The National Capital Region is still under a stricter general community quarantine.

The mall and other areas on the property also use sanitation and disinfection technologies including a smart disinfection and temperature chamber, Multi-Quat sanitizers (a sanitizing concentrate used for food service and housekeeping), and escalator handrail sanitizers using UV light.

“[W]e have our screening chambers in every single entrance. We’re actually adjusting our air-conditioning for the whole property to have UV technology to enable the whole resort to screen viruses coming in,” Mr. Reilly said at the briefing.

While the hotels are poised to reopen, the complex’s casino remains closed following the guidelines set by the Inter-Agency Task Force on Emerging Infectious Diseases.

Among the sanitation procedures being followed in the hotels include the frequent disinfection of high-touch areas in the properties and using “electrostatic sprayers with hospital-grade disinfectants” for both Marriott and Sheraton.

The entire property meanwhile, will have an “antivirus patrol” which will be responsible for checking and ensuring that guests wear face masks and follow physical distancing protocols.

The hotels are readying themselves for eventual reopening while their restaurants and food and beverage outlets are already adjusting to the new normal and protocols set by the Department of Trade and Industry.

Pick-up and delivery services are now available in-house for outlets such as Victoria Harbour Cafe, Silk Road, Happy 9, and Casa Buenas. The service, called Delishvery, will soon include outlets from Marriott Manila and the Hilton Manila. Hotel Okura Manila, though it is yet to open its hotel rooms, is offering its Japanese cuisine for takeout with Okura at Home. Sheraton Manila currently offers takeout from its all-day dining restaurant S Kitchen and Korean restaurant, Oori.

Savoy Hotel Manila and Belmont Hotel Manila, meanwhile, both have their own pick-up and takeout services. — Zsarlene B. Chua

A Brown acquires developer of natural gas facility in Batangas

A BROWN Co., Inc. (A Brown) has acquired a Singaporean energy firm that plans to build a liquified natural gas (LNG) power plant and floating terminal in Batangas.

In a stock exchange disclosure on Monday, the Cagayan de Oro-based listed company said it completed last week its purchase of 99.995% outstanding capital of Vires Energy Corp. (Vires), which is owned by Singapore-based Agro Group Pte. Ltd.

Vires is set to build an integrated floating LNG storage and regasification terminal and a P35-billion 506-megawatt floating natural gas-fired power plant in Barangay Simlong, Batangas City.

“The acquisition of Vires Energy reflects our confidence in the role of natural gas in providing for a clean and cost-effective energy source. We are excited to push the project forward,” A Brown Chairman Walter W. Brown was quoted as saying.

The gas project has been cleared for environmental compliance and has secured registration with the Board of Investments.

A Department of Energy (DoE) technical working group reviewing Vires’ application for notice to proceed has yet to submit its report, Rino E. Abad, the director of the DoE-Oil Industry Management Bureau, said in a phone message.

The Philippines has planned to import LNG from global importers as a substitute for the diminishing output of Malampaya.

The country’s sole indigenous gas producer, Malampaya gas-to-power project, which supplies 20% of the country’s electricity, is expected to be almost depleted by 2027.

Meanwhile, Mr. Brown is slated to be the chairman of Vires, while Eduardo V. Manalac will remain as president and chief executive officer of the company.

It was in October last year that A Brown and Agro Group signed a memorandum of agreement for Vires’ capital acquisition.

A Brown is the holding company of Brown Group of Companies which business interests include real estate development, palm oil production, and power generation.

On Monday, shares in A Brown jumped by 11.11% to close at P0.70 apiece. — Adam J. Ang

Oyo’s PHL occupancy rate at 40% despite pandemic

OYO HOTELS and Homes reported keeping a relatively good performance in the Philippines and Southeast Asia despite the coronavirus disease 2019 (COVID-19) pandemic.

In a statement, the tech-based hospitality firm said it had an occupancy rate of 40% in the Philippines for the month of May, even as the occupancy rate dropped to 20% for the whole industry.

“Based on the available industry data, Oyo properties in Southeast Asia have fared better than the market in these troubled times, with Oyo revenue per available room dropping by 5% vs 20% for the industry in February over January,” Mandar Vaidya, Oyo CEO of Japan, Southeast Asia and Middle East, said in the statement.

The company noted in the Philippines, Oyo was a partner of government and medical organizations, including the Office of the Vice-President, in providing shelter for frontliners and returning overseas Filipino workers.

With this reception, the company remains optimistic in keeping its Philippines and Southeast Asia footprints as strategic growth markets for Oyo.

“We are learning from trends in countries like Vietnam and Malaysia that are slowly coming back post-lockdowns…,” Ankit Gupta, Oyo country head in the Philippines, said in the statement.

“Learning from our experiences in these countries, we’ve observed that travel destinations near larger cities show very high occupancies during weekends and customers prefer long stays, especially with offline partners,” he added.

Mr. Gupta said Oyo’s thrust is to launch sanitation efforts that would keep customer confidence in its properties. Among these initiatives are implementing hygiene protocols and training hotel staff on improved sanitation procedures.

“As a brand committed to offering safe accommodation options, Oyo is proactively leading the change in housekeeping and cleanliness protocols within the hospitality industry, across all Oyo properties,” he said.

Oyo is a hotel start-up that started in 2013 and is now present in over 800 cities in 80 countries across the world. In the Philippines, it operates properties in Manila, Batangas, Cebu and Davao. — Denise A. Valdez

Electronic Arts sees social features as the future of gaming

ELECTRONIC Arts Inc. has seen the future of gaming and it’s as much about socializing as it is blasting enemies.

The company is working to build more ways to communicate into its software, so that friends can chat and share the experience without having to leave the game.

Right now, many people play games while simultaneously using video apps such as Discord. The idea is to bring more of those capabilities into the games themselves, said Laura Miele, Electronic Arts’ chief studios officer.

“I think we need to support video social engagement in one experience versus people having multiple apps,” Miele said in an interview. “There’s a big opportunity there.”

The company, which makes the Battlefield, Sims and Madden NFL series, is trying to develop new ways for people to plot their strategy and exchange gear before battle, and to share user-generated content, she said. She called the effort “a priority.”

With many people still stuck at home during the coronavirus pandemic, video games have become bigger gathering places. A growing number of people are using game platforms to watch movies, attend concerts, and just hang out with friends. In-game birthday parties and graduations also are becoming more common.

Next-generation consoles from Sony Corp. and Microsoft Corp. due later this year also are expected to generate more buzz around gaming. They’re designed to offer better graphics and faster gameplay.

“We are evaluating all possibilities,” Miele said. “New hardware and platforms will clearly enable new services.”

NEW GAMES
At Thursday’s EA Play virtual expo, which replaced the typical physical event in Los Angeles, the company highlighted its upcoming games for the new consoles. With Madden NFL 21 and FIFA 21 sports games, players will be able to upgrade to next-generation console versions for free. And Electronic Arts is making its games available on online services like Steam and Google Stadia.

The company also announced it was bringing back the cult favorite Skate game after a decade.

Its Apex Legends battle game that’s coming to Steam in the fall will allow for cross-play, letting console owners play with people using PCs. Star Wars: Squadrons, launching in October, also allows for cross-play support.

Future release dates may hinge on how long the pandemic lasts. With some 6,000 employees working from home, Electronic Arts has managed to roll out several titles and updates without a hitch. But now it’s trying to figure out how to reconfigure its offices so employees could eventually return, as the gaming industry thrives on in-person collaboration.

“Our future slate is looking strong,” Miele said. “But we are watching it, and we will prioritize the well-being and health of our teams. If we’d need to move the dates, we will, but we haven’t announced anything yet.” — Bloomberg

SEC clears AboitizPower’s P6-billion fixed rate bonds

Aboitiz Power Corp. is set to issue the fourth tranche of its P30-billion fixed-rate retail bonds after the Securities and Exchange Commission (SEC) signed off its release.

The latest tranche of the peso-denominated securities, which the corporate regulator cleared last Friday, is worth P6 billion, with an oversubscription option of up to P3.55 billion.

It is composed of Series E fixed-rate bonds with an annual interest rate of 3.125% that is due in 2022 and Series F fixed-rate bonds with an interest rate of 3.935% per annum that is due in 2025.

The bonds offer commenced on June 19 and will end on June 26. These will be issued on July 6.

AboitizPower chose BDO Capital & Investment Corp., China Bank Capital Corp., and First Metro Investment Corp. as joint issue managers and joint lead underwriters.

It also designated BDO Unibank, Inc.’s trust and investments group as the trustee and Philippine Depository & Trust Corp. as the registrar and paying agent.

The company started selling securities under the shelf registration program of the SEC in 2017.

Shares in AboitizPower increased by 2.16% to close at P28.40 each on Monday. — Adam J. Ang

DMCI Homes project offers big units

DEVELOPER DMCI Homes is offering big unit options at The Atherton, a residential condominium project in Parañaque City.

The project, located along Dr. A. Santos Avenue (formerly Sucat Road), has three- and four-bedroom tandem unit options that “aim to give a growing family larger dwelling spaces that suit their wants and needs.”

The three-bedroom unit has a total floor area of 91 square meters (sq.m.), while the four-bedroom unit has a floor area of 113 sq.m.

DMCI Homes allotted nearly 70% of the approximately 1.76-hectare land area for outdoor amenities, such as pools, activity lawn, picnic area, basketball court, jogging path, gazebos and roof deck.

The three buildings of The Atherton — Oak, Helicia, and Almond — are now preselling with prices starting from P3.4 million.

Virtual fan meeting in the new normal

By Cecille Santillan-Visto

FAN MEETING
Virtual Hangout
with Park Jinyoung
June 19, 7 p.m.

WITH the continuing threat of the coronavirus disease 2019 (COVID-19), it will take time before the Korean pop scene will return to what it used to be.

In Seoul, live audiences are no longer allowed in music shows. Concerts are now staged online as rubbing elbows in a packed performance venue will undoubtedly heighten the risk of virus transmission. Even fan meetings are now being held virtually.

These online K-pop events are not even half of the cost of what producers normally charge. If a fan is lucky, these could even be shown for free in exchange for the expected heavy commercial endorsements. The shows do not burn big holes in the fans’ pockets, but admittedly, these are not as much fun as the live versions.

But everyone has to adjust to the so-called new normal.

And in the case of fan meetings, loyal followers of K-pop idols will just have to resort to their vivid imagination and can only hope that their feelings are transmitted through their computer or mobile phone cameras.

Last Friday, fans of Korean band GOT7 received a treat from Globe Telecom when it brought in one of its members, Park Jinyoung, for a “virtual hangout.”

Mr. Park is one of the GOT7 members with a thriving solo career on the side. His latest drama show on tvN, When My Love Blooms, just finished its run on June 14. He received positive reviews for the series, where he plays the younger version of the lead character, Han Jae Hyun. He also released his solo photo book, Hear Here, on June 18, making last week very busy for the 25-year-old Park.

When asked how he is able to connect with GOT7’s fandom, the Ahgases, amidst the pandemic the singer-actor said technology is a huge help.

“I used to ‘see’ my fans through my dramas and since my last one has ended, I was worried that I would not be able to ‘see’ them. But with Kmmunity PH, I am happy to be given this opportunity to see them,” he said, through an interpreter, adding that he and his agency, JYP Entertainment, are carefully considering offers for his next project.

Kmmunity PH is an online group created by Globe for its subscribers and customers to be able to continue to bring K-pop fun despite the limitations brought about by the COVID-19.

As in the usual fan meeting, there was a Question & Answer portion, some games, and even a short live performance. Mr. Park chose to sing an English piece, perhaps to better connect with the Filipino audience. His version of Justin Bieber’s “Changes” definitely excited the viewers. Six contestants were picked for the “Guess That Scene” and “Get To Know More of Jinyoung” games. Before the close, a fan-made video for the Korean star was also shown.

The one-hour virtual hangout was shown live on Facebook, but over 100 selected fans were invited to have a brief Zoom meeting with Mr. Park after the main event. These fans clinched their slots by joining contests prior to the online fan meet.

It was less than an hour with the GOT7 member but for fans left hanging by the global health crisis, it was an hour well spent.

Those who spent the additional few minutes with the artist for an “online photo opportunity” were luckier. True, there was no eye-to-eye contact or even a high five on the side but Mr. Park indulged the winners with some cute poses. These should have satisfied their K-pop cravings — at least until face-to-face fan meetings are again permitted.

As host Kring Kim said, online fan meetings at least allow all their followers to be “front and center” of the action. Everyone was on equal footing and there was no need to jockey for position in front of the stage.

Globe has scheduled more online K-pop events including a seven-day concert series between June 20 and 26 featuring 32 K-pop groups including Monsta X, N.Flying, Mamamoo, GFriend, Astro and Stray Kids.

No meet-and-greets are included in the package and enthusiasts will have to content themselves with vicariously experiencing it with other fanatics.

Razon, Leviste ink 800-MW solar energy joint venture

RAZON-LED Prime Metroline Infrastructure Holdings Corp. (Prime Infra) and Solar Philippines Tarlac Corp. are set to jointly build big solar projects after they signed a P1.5-billion deal boosting the latter’s energy capacity.

In a statement on Monday, the infrastructure company said the deal, which gives it 50% of common shares of Solar Philippines, will raise the renewable energy firm’s capacity to as much as 800 megawatts (MW), touting the partnership as the “largest solar project joint venture established in the country.”

“Renewables as a stand-alone power source or combined with other forms of power generation and storage are the future of power generation both in terms of reliability and cost,” Prime Infra Chairman Enrique K. Razon, Jr. was quoted as saying.

The agreement will see the development of two new solar projects serving the Luzon and Visayas grids, as well as the capacity expansion of the 150-MW Concepcion solar farm in Tarlac to up to 200 MW.

“We believe that partnerships are key to be competitive in the power business,” said Leandro L. Leviste, president of Solar Philippines, the largest solar developer in the Philippines.

The latest transaction follows Prime Infra’s acquisition of a gas-fired asset in Iraq in February this year, further expanding its power generation portfolio.

Prime Infra, which was incorporated in 2017, owns businesses focused on construction, water, and power. — Adam J. Ang

Australia fears 2nd wave of COVID-19 cases

AUSTRALIA’S second-most populous state has tightened coronavirus controls as a spike in cases triggers fears the nation could be hit by a second wave of infections.

Victoria extended a state of emergency by four weeks to July 20, halved the number of visitors allowed in homes to 5 and delayed a planned increase in the size of gatherings in cafes, restaurants and pubs.

The weekend announcement, and a jump in cases in countries including the US, Israel and South Korea, heightened market concerns about the difficulty of reviving economic growth while controlling the spread of COVID-19 (coronavirus disease 2019). The Australian dollar declined against most of its Group-of-10 peers on Monday, falling as much as 0.4% before recovering, while the benchmark S&P/ASX 200 index initially declined as much as 1% before recouping its losses.

Australia has managed to limit the total number of coronavirus cases to about 7,460 by closing international and state borders, quarantining returning residents in hotels, social distancing measures and a widespread testing and tracing regime. But concerns are growing about community transmission in Victoria, responsible for 116 new cases in the past week — 83% of the national total, as of June 21. Of those, 87 were largely associated with community transmission.

“This is part of living with COVID-19,” Prime Minister Scott Morrison told reporters in Sydney on Monday. “We will continue on with the process of opening up our economy and getting people back into work. But there will be setbacks from time to time.”

On Monday, Victorian health authorities announced they had detected a further 16 cases in the past 24 hours — six linked to known outbreaks, four detected in hotel quarantine, five detected through routine testing, and one under investigation.

Health authorities are warning people to avoid traveling to six areas in the state capital, Melbourne. A professional Australian Football League match scheduled to be played in the city on Sunday was postponed after a player contracted the virus.

The spike in cases may cause states and territories such as Queensland, Western Australia and Tasmania to keep their borders closed beyond July, despite pressure from Morrison to allow inter-state travel to boost tourism and buoy the shattered economy.

On Monday, health authorities in New South Wales state strongly discouraged travel to and from Victoria because of the spike. Queensland Premier Annastacia Palaszczuk told reporters that the National Cabinet was expected to discuss interstate border restrictions when it meets on Friday, describing the outbreak in Victoria as a “national concern.”

Australia’s Chief Medical Officer Brendan Murphy on Monday said he was concerned by the “fairly rapid rise” of infections over a few days in Victoria, which appeared to be caused by family gatherings. In some instances, people who had tested positive or come into contact with an infected person had failed to self-quarantine.

“Complacency is dangerous,” Mr. Murphy told the Australian Broadcasting Corp.

There was no sign the Black Lives Matter rally in Melbourne earlier this month had caused a spike, he said. Officials don’t believe the three protesters who have tested positive were infected at the rally, or transmitted it there. However, the mass protests may have encouraged other people to flout social distancing rules and gather in larger numbers, he said.

If lockdown measures are re-imposed more widely, it could further damage the economy and erode business confidence and consumer sentiment, said Nathan Cloutman, a senior industry analyst at IBISWorld. “Businesses are now less likely to restock supplies and rehire employees when social distancing is removed, out of fear that restrictions will be re-imposed before they can generate revenue to cover those costs.” — Bloomberg

HKL, RLC committed to The Velaris Residences

HONGKONG Land (HKL) and Robinsons Land Corp. (RLC) expressed their long-term commitment to the premium condominium project, The Velaris Residences.

The flagship development of RHK Land Corp. occupies a prime spot in Bridgetowne, a 31-hectare master-planned destination estate spanning Pasig City and Quezon City. It offers direct access to C5 Road, Ortigas Avenue, and Amang Rodriguez Avenue.

Lee Chee Hoe, chief representative of Hongkong Land Philippines, said even with the ongoing pandemic they are “fully committed to bringing world-class living accommodations to the country.”

“As the country goes through great challenges brought forth by the pandemic, you can count on the company to remain steadfast in our commitment. We remain optimistic about the future, and we are confident that our clients and investors recognize the inherent value that The Velaris Residences offers,” Henry Yap, Business Unit General Manager of RLC residential division and concurrent RHK Land president, said.

Units at The Velaris Residences come with “smart home features such as biometric fingerprint scanning, PIN code, RFID card access, and smart digital locks for state-of-the-art security.”

The Velaris Residences also has private lift lobbies for two-bedroom, three-bedroom, and penthouse unit owners.

Twenty-Nine Eleven tackles 6Cyclemind’s ‘I’ on cover project

FILIPINO indie pop rock band Twenty-Nine Eleven has released its version of 6Cyclemind’s “I” as part of 6Cyclemind’s ongoing Sige I-Cover Mo Lang project.

The cover project started in March and was intended as a digital album featuring covers of 6Cyclemind songs. The first song was 16-year-old singer Bianca’s rendition of “Biglaan,” which the band originally released in 2003.

“Throughout our career, we have been touring different parts of the country. We are lucky to witness how our audience, even from far-flung areas, sing our songs with us. This is indeed a very magical feeling. Online, we can also view our fans cover our songs. This makes us feel that, somehow, through our music, we have touched their lives. This is the reason why we have decided to do this project,” Fortunato “Tutti” Caringal, the band’s vocalist, said in a statement during the launch of the project in March.

6Cyclemind, the five-piece rock band started playing in Manila in 2001 and has so far released six studio albums, the most recent in 2012 titled Good By Sunday. Some of the band’s biggest hits include “Biglaan” (2003), “Sandalan” (2005), and “Prinsesa” (2007).

This time, the 2005 song off of their Panorama album got the cover treatment from Twenty-Nine Eleven and this take on the alt-rock song stood out because of its “earnest simplicity and delicate arrangements, giving the song a refreshing spin while maintaining the original’s timelessness and emotional appeal,” according to a press release.

“[In] order to make it sound like us, we wanted to rearrange the song and add more of our personality to it. As with all of the songs that we’ve done before, we experimented with it until we got the right ‘feel’ that we wanted to express as a band,” Fony Alfonso, Twenty-Nine Eleven lead vocalist, was quoted as saying in the release.

The members of the five-piece band said they considered 6Cyclemind as one of their inspirations.

“After spending time with the members of 6Cyclemind, we were able to understand that it wasn’t only their music style that made them successful, but also their perseverance in pursuing their career and passion,” Alexandre Abesamis, the band’s guitarist, said in the release.

“As they’ve told us back then, there were a lot of other better and more skilled bands than them, but what made them stand out is that they never stopped playing,” he added.

Currently, the band is working on new material inspired by the various styles and genres of music (“from dramatic love songs to the heaviest rock songs,” said Jerell Co, the band’s drummer) that they have been listening to since high school.

Twenty-Nine Eleven’s rendition of “I” is now available on various music streaming and download platforms worldwide. — ZBC