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PSBank raises P6.3 billion from offer of 2-year bonds

PHILIPPINE SAVINGS Bank (PSBank) raised P6.3 billion in fresh funds via two-year fixed-rate bonds as it saw robust demand from investors.

In a regulatory filing on Thursday, the thrift lending arm of Metropolitan Bank & Trust Co. (Metrobank) Group said it raised P6.3 billion through its maiden peso bond offering, more than double its initial P3-billion program.

Due to “strong demand,” PSBank had to cut short the offer period to July 5 from the original July 17.

The two-year instruments carry a coupon rate of 5.6% per annum to be paid quarterly until 2021.

“We were overwhelmed by the market reception to our bond offering with strong investment from both institutional accounts and retail investors,” Jose Vicente L. Alde, president of PSBank, was quoted as saying in the statement. “In just five days, the total order book was four times oversubscribed, allowing us to significantly upsize the transaction to P6.3 billion.”

The fund-raising activity marks the first tranche of PSBank’s P40-billion bond program, which will be offered in multiple tranches.

The raised funds will be used by the bank to “access long-term funding as it expands its consumer banking business” and to diversify its funding base.

“This is solid proof of trust placed in PSBank as an institution as well as the confidence of the market in the various business initiatives we have been undertaking to further the growth of the bank,” Mr. Alde added.

Standard Chartered was tapped to be the sole arranger of the transaction. It also served as a selling agent alongside PSBank, Metrobank and First Metro Investment Corp.

The IOUs are scheduled to be listed on the Philippine Dealing & Exchange Corp. on July 24.

In January, the bank raised P8 billion via a stock rights offer, selling 142.9 million common shares priced at P56 apiece.

PSBank also raised P5 billion and P3 billion last year through offers of long-term negotiable certificates of deposit and medium-term fixed rate notes, respectively.

The lender booked a P680.7-million net income in the first quarter, up 10.3% from the same period in 2018, driven by interest income growth and expense management.

Local debt watcher Philippine Ratings Services Corp. affirmed its “PRS Aaa (corp.)” issuer rating on PSBank last month, indicating continued growth in core interest income and strong market position.

PSBank shares gained 25 centavos or 0.43% to close at P58.40 each on Thursday. — Karl Angelo N. Vidal

Insurance Commission chief tapped to chair Asian Re

INSURANCE COMMISSIONER Dennis B. Funa was elected as chairman of Asian Reinsurance Corp. (Asian Re), the Insurance Commission (IC) said.

In a statement sent to reporters on Thursday, the regulator said that the regional reinsurance firm unanimously elected Mr. Funa last June 28 to head Asian Re for two years.

Headquartered in Bangkok, Thailand, Asian Re operates as a professional reinsurer accepting business from the insurance markets in member states and elsewhere. It also serves as a regional center for the collection of insurance information as well as development of expertise in insurance and reinsurance.

Mr. Funa replaced Abdolnaser Hemmati, who had been appointed as the governor of the Central Bank of Iran.

The last time the Philippines chaired Asian Re was in 1985 when Insurance Commissioner Gregoria Cruz Arnaldo was elected.

Asian Re was established in May 1979 as an intergovernmental organization endorsed by the United Nations Conference on Trade Development as well as the United Nations Economic and Social Commission for Asia and the Pacific.

At present, Afghanistan, Bangladesh, Bhutan, China, India, Iran, the Philippines, South Korea, Sri Lanka and Thailand serve as regular member states of Asian Re.

In addition, 19 insurance and reinsurance firms from Asia serve as associate members of Asian Re, which include companies from Iran, India, Japan, Thailand, United Arab Emirates and Bangladesh, among others.

Mr. Funa said Asian Re is facing issues such as tight competition as well as the US’ sanctions against Iran.

“The reinsurance business is very competitive in Asia with the presence of big and well known reinsurers such as Swiss Re and Munich Re,” Mr. Funa said in a text message.

To address this, he said the firm is now looking at the African market.

Apart from this, he said the sanctions imposed by the US on Iran, which has a significant stake in Asian Re, is another main issue that impacts the business.

“However, Asian Re business has been growing strong in the past three years.” — Karl Angelo N. Vidal

Your Weekend Guide (July 12, 2019)

Binondo: A Tsinoy Musical

BINONDO: A Tsinoy Musical returns for a limited run at The Theater at Solaire until July 14. The musical centers on a Filipina nightclub singer in pre-Martial Law Manila, and a mainland Chinese scholar returning to Cultural Revolution-era Beijing, who meet and fall in love during the 1972 mid-autumn festival. With the book and lyrics by Ricky Lee and direction by Joel Lamangan. For tickets and schedules, visit TicketWorld (www.ticketworld.com.ph, 891-9999).

Ang Huling El Bimbo

FULL HOUSE Theater Company returns with the final run of Ang Huling El Bimbo, a musical featuring the songs of the Eraserheads, until Aug. 15 at the Newport Performing Arts Theater, Resorts World Manila, Pasay City. The musical tells a story of friends who reunite after 20 years and look back on the things that brought them together and kept them apart. For tickets and schedules, visit TicketWorld (www.ticketworld.com.ph, 891-9999).

Stop Kiss

POSITIVE Space, MusicArtes, and the New Voice Company presents Diana Son’s Stop Kiss, a play which focuses on the challenges faced by a lesbian couple after being assaulted when they shared a kiss in public. Directed by Ed Lacson, Jr., the play stars Jenny Jamora and Missy Maramara. It will have performances on July 12 to 14 and July 19 to 21 at the PowerMac Center Spotlight, Circuit, Makati City. Tickets are available at www.ticket2me.net/e/2445/stop-kiss. For inquiries and show buying, call 0915-835-9210, or e-mail stopkiss2018@gmail.com.

Rak of Aegis returns

THE hit Pinoy jukebox musical Rak of Aegis returns to the PETA Theater Center, with ongoing performances until Sept. 29. The show brings the songs of the Aegis band such as “Halik,” “Sinta,” and “Basang-Basa sa Ulan,” to tell the tale of a perennially flooded barangay. This latest production features a mix of original cast members including Aicelle Santos and Kim Molina, Isay Alvarez-Seña and Sweet Plantado-Tiongson, Robert Seña and Renz Verano, and Kakai Bautista and Neomi Gonzales. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999,).

Ortigas mall events

AT Estancia, there will be a workshops called Level-up Your Writing Skills on July 13, 3-5 p.m., conducted by Jonah Chipeco of Writing Hacks. On July 14, 2 and 4 p.m., The Nutty Scientist will be on at the 2/F Bridgeway. Meanwhile, at the VMall Lobby at the Greenhills Shopping Center, Entre Pinoy presents a Payday Food Fair on July 11 to 14 featuring 24 new concepts.

The Lean Hiring process unknown to HR

I heard that you are advocating the application of Kaizen and Lean principles in the human resource function. Can you tell me how it works, for example in processing the application of job applicants? How should it benefit company management? — Yellow Submarine.

A story is told about a zoo that has a unique proposition to attract visitors. In one part of the zoo, a cage was labeled “Coexistence.” Visitors were amazed to see a lion and some meek lambs living side-by-side with one another inside the cage. The zookeeper explained that there was nothing extraordinary about it, but just the same, he admitted: “All we have to do every now and then is to check what’s missing and replace it with another lamb.”

Just like a meek lamb, the HR department is often portrayed as “the weakest group within an organization,” according to Cheryl Jekiel, author of “Lean Human Resources” (2011). More than that, critics say that HR is a cost center and there’s nothing much it do but to perpetuate itself as a glorified custodian of employee files.

I feel hurt by this baseless generalization as I have lived and worked my whole life doing HR work since 1981 when I started my career as a Personnel Supervisor at a telecommunications company. Since then, we have progressed a lot with the digital age but HR people still clings to their old style.

In 1995, management guru Dave Ulrich started advocating that HR professionals adopt a four-role model: employee champion, administrative expert, change agent and business partner — all rolled into one. So where does Lean HR comes in? If you still don’t understand it, let me tell you that Lean HR is the actual implementation of the Ulrich model.

It’s all about making HR relevant by actively identifying and eliminating waste or non-value added things in its operations, including the hiring process. It’s all about Kaizen and Lean or the continuous elimination of waste in HR operations. There are so many things to do. And to answer your question, allow me to introduce the three stages in the lean hiring process, which is carelessly ignored by some irresponsible HR managers. Let’s count the ways:

First Stage. Do the digital screening of applicants’ curriculum vitae. Ask all job applicants to send the PDF copy of their CVs to the company’s email address. There is no need to secure the print copy of their CVs and other documents like transcript of records, diploma, birth certificate, police clearance and all. Not at this early stage. There is no need to seek more documents other than the CV. More than that is unnecessary and superfluous.

That’s because you don’t want your office to become a warehouse containing mountains of file folders as it is with government offices that unwittingly display their inefficiency. Furthermore, you don’t want to be responsible for keeping all the personal information private, thereby risking data privacy violations. Be aware that there are some rejected applicants who play games by asking you to return their documents even if the ones submitted are photocopied.

Now, if you’re convinced that an applicant has passed the paper screening, the next step is to conduct the initial interview via Skype or other similar means. If he passes, schedule him for the IQ or psychological written examination, if necessary. Take advantage of digital screening and you’ll save a lot of time, money and effort for you and the applicants.

Second Stage. Conduct a face-to-face interview to validate applicant claims. If you’re convinced there is potential that certain applicants will get the job, then proceed with a series of interviews. Depending on the nature of each vacant job, do the interview without using those ho-hum questions and their suggested answers you can find on the Internet. It’s better for you to be creative by asking situational questions designed to test one’s aptitude and potential on the job.

Level up the interview process by having a panel or conduct a stress interview with the help of other department managers. They must have a uniform set of killer situational questions for consistency and fairness because you don’t want to ask different questions to different applicants. If necessary, arrange for IQ and psychological testing for entry positions.

At this point, proceed to ask for a copy of essential documents of the applicant’s transcript of records or proof of passing a government examination. Those are the only documents you need to evaluate the competence of an applicant. Don’t ask for original copies as you may lose them in the process and rejected job applicants may pester you to return them.

When you seek a copy of the documents, require the concerned applicant to sign in the space with a rubber stamp that says: “I certify that this copy is a faithful reproduction of the original and I vouch for its authenticity. If proven otherwise, I respect the right of my employer to terminate my employment.”

Last Stage. Finalize your short list of the top three job candidates. Make an offer to your number one choice and require him to undergo the pre-employment physical and medical examination while alerting him to be ready with all pertinent documents. Don’t accept any original copy as you don’t want to be disturbed by applicants asking for its return, should they change their mind or if they fail to pass.

Follow the requirements in Stage Two about certifying authenticity.

On the pre-employment documents, notice that you have not asked all job applicants, except from your number one applicant. This is an important element of Lean Hiring. After all, why bother securing those documents from all applicants where you’re not sure whom to hire among them? Why do you need for the applicants’ SSS and Pag-Ibig ID? Would that help HR to assess the competence of people?

Also, what’s the value of a clearance from the National Bureau of Investigation or other government agency during the first and second stage? The same question can be asked in the case of the birth certificate and marriage certificate. Would a correct name or marital status help you predict excellent work performance? You should have understood Lean Hiring by now.

If everything is in order, the successful applicant must sign a contract that includes the pay and perks package, terms and conditions of employment and adherence to the basic management policies, including those found in the Code of Conduct. Then, proceed to do background checks within the first two months of employment date.

Easy does it with less hassle. Now, do you still wonder about the value of securing all those documents from all applicants in the first step of the hiring process?

ELBONOMICS: The art of being wise lies in the science of being simple.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

SEC warns public vs investing in Paycheck companies

THE Securities and Exchange Commission (SEC) warned the public against investing in several “Paycheck” companies, since these are not authorized to solicit investments or have the license to sell securities.

In an advisory on the SEC website, the corporate regulator said individuals or groups representing Paycheck AB Online Services Co., Paycheck AB Online Advertising Services, Paycheck.Net.Inc., Paycheck-AB.com, Paycheck Affiliate Marketing, Paycheck: E-commerce System and Affiliate Marketing or Paycheck have been “enticing the public to invest money with the promise of monetary rewards or profits.”

“The public is hereby informed that the above named entities are not authorized to solicit investments from the public, not having secured prior registration and/or license to sell securities or solicit investments as prescribed under Section 8 of the Securities Regulation Code (SRC),” the SEC said.

The SEC said Paycheck firms have been asking participants to pay P1,000, and in exchange, will receive “high monetary rewards” if they recruited more people to join the investment scheme.

“[T]he public is hereby advised to stop investing in the investment scheme being offered by the said entities,” it said.

The SEC also warned that salesmen, brokers, dealers and agents of these Paycheck companies may be criminally charged and penalized with a fine and imprisonment, as indicated in Section 73 of the Securities Regulation Code (SRC).

Section 73 of the SRC said the penalty for violating any of the SEC’s regulations may be a fine between P50,000 and P5 million, or imprisonment of between seven to 21 years.

“Furthermore, the names of all those involved will be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed,” it added. — Denise A. Valdez

How does the Philippines’ tax effort compare to those of its neighbors?

How does the Philippines’ tax effort compare to those of its neighbors?

How PSEi member stocks performed — July 11, 2019

Here’s a quick glance at how PSEi stocks fared on Thursday, July 11, 2019.

 

First tranche of Malolos-Clark Railway loan from ADB signed

PRESIDENT Rodrigo R. Duterte witnessed the formal signing last Thursday of a $1.3 billion loan, the first tranche of a total $2.75 billion facility, between the Philippines and the Asian Development Bank (ADB) for the Malolos-Clark Railway Project (MCRP).

The loan agreement was signed by Finance Secretary Carlos G. Dominguez III and ADB Vice-President Ahmed M. Saeed.

“The Malolos-Clark railway is part of the Philippine government’s North-South Commuter Railway project, which aims to link New Clark City to Calamba by 2025,” the ADB said in a statement.

The project, according to the ADB, will use “cutting-edge technology to build an elevated railway line, with a maximum train speed of 160 kilometers per hour, to help ease chronic road congestion in and around Metro Manila, reduce air pollution, cut the costs of transport and logistics, and encourage economic growth and a population shift outside the capital.”

Mr. Saeed was quoted as saying: “Our work in the Philippines has always held a special place in the history of ADB. Now, under President Duterte’s ‘Build, Build, Build’ infrastructure program, ADB is considerably scaling up its own support to the government… The Malolos-Clark Railway Project is ADB’s single largest infrastructure project financing ever at $2.75 billion. We are pleased to be supporting this important flagship project in our host country.”

The President said in his speech during the ceremony: “I am directing the Department of Transportation (DoTr) to fast-track the completion the MCRP and observe the highest quality standards as we complete this railway project.”

“By the time it is completed, I expect that our people, especially those from Central Luzon, will greatly feel the impact of our ‘Build, Build, Build’ program,” he added.

The ADB noted that the project is the result of its “close collaboration” with Japan International Cooperation Agency (JICA) and the DoTr.

“During project preparation, a joint technical team from the department and the two institutions conducted regular ‘Build, Build, Build’ meetings, with reporting to Transportation Secretary Mr. Arthur Tugade. ADB’s safeguard and resettlement policies were adopted and are being implemented for the project,” it also said. — Arjay L. Balinbin

NFA palay procurement tops 5.4M bags in first half

THE procurement of palay, or unmilled rice, amounted to more than 5.4 million bags in the first half, exceeding the target by 16%, the National Food Authority said in a statement, as the agency concluded its first half-year focused only on domestic rice procurement.

“With a very high rate of procurement during the previous months, we were able to raise the NFA’s total palay procurement for the first half of 2019 to 5.412 million bags. In total, our palay procurement is 16% higher than our 4.649 million target during the first six months this year,” NFA Administrator Judy Carol L. Dansal said in the statement Thursday.

The Rice Tariffication Law opened up rice imports to private firms, leaving the NFA to concentrate on procuring palay from domestic farmers to build its emergency reserves. It offers various incentives to make selling to the NFA attractive relative to prices offered by private rice traders.

Ms. Dansal also noted that the agency was able to front-load its procurement before the onset of the lean months. In June procurement totaled 626,100 bags, beating the target by 140%.

“It is very favorable because the agency is now preparing for the lean months, from July to early September, and for calamities that may hit the country during the rainy season. The rice import liberalization law still requires us to ensure at least 15-30 days of buffer stock and since the agency can no longer source its stock from imports, it is fortunate that our agency is performing well in procuring palay from our own farmers and that we were able to meet our mandated level of buffer stock,” she said.

The Rice Tariffication Act, or Republic Act 1120, opened up the import market to private entities while charging tariffs on their shipments. Imports used to be a key part of the NFA’s operations.

In October, the agency increased its buying price to P20.40 per kilogram (/kg) for individual farmers and P20.70/kg for members of farmer cooperatives or organizations, from P17.40/kg and P17.70/kg previously.

It has also added a P3.00/kg buffer stock incentive on top of the P0.20/kg drying, P0.20/kg delivery, and P0.30/kg Cooperative Development Incentive Fee.

Ms. Dansal said she has instructed NFA field offices to start milling palay in preparation for the lean months to ensure adequate supplies ready for release anytime.

“We have to efficiently manage our stocks, both to ensure our financial stability, and to see to it that by the time the main crop harvest starts in September until December, we will be ready again to serve our clients. We must be able to sustain our procurement operations with sufficient logistics, especially warehouse space to store the stock that we will be continuously procuring from our farmers,” she said.

She also noted that NFA rice is still being distributed at P27 per kilogram through accredited retailers. — Vincent Mariel P. Galang

South Korea free trade talks seen completed by Sept., signing by Nov.

NEGOTIATIONS for a Free Trade Agreement (FTA) with South Korea are expected to finish by September in time for possible signing in November, according to Trade Secretary Ramon M. Lopez.

“September, kasi yung major agreements, anong produkto ang kasama, ilang percent ma-liberalize, tariff reduction program, yung mga basic terms syempre kailangan mag-agree na kayo doon so that you can work on the text, the components,” (The talks are due to wrap up in September because the two sides need to agree on included products, the percentage which will be liberalized, a tariff reduction program, the basic terms — of course you have to agree on that so that you can work on the text, the components) Mr. Lopez told reporters Thursday during the Philippines-Korea Business Forum organized by Korean Importers Association (KOIMA) at the Conrad Manila.

Asked if it could be signed in time for President Duterte’s visit, he said, “That’s the target nga, November. So that should be the highlight of the visit as well, that there’s a new FTA. The original intention is for us to really have better tariff rates sa (on) banana.”

The Philippines and South Korea mark the 70th year of diplomatic relations this year.

The Philippines is seeking lower tariffs for agricultural products like bananas, pineapple and mango as well as processed food, industrial products and auto parts. South Korea on the other hand is pushing for more leeway to ship in auto-related products.

The Philippines is hoping to get tariffs for bananas to be reduced to around 5% from 30% currently, amid stiff competition from other suppliers like Ecuador.

Di naman kailangan zero, I think i-match lang (It doesn’t have to be zero, I think we’ll be happy to match the rates for other countries)… A single-digit rate… in the vicinity of 5% (will suffice),” he said.

Mr. Lopez also said that to reciprocate, import tariffs on South Korean fruits like strawberries and pears could be lowered to 5% as well.

FTA talks started earlier this month.

In 2018, imports from South Korea were valued at $10.55 billion, while the exports were worth $2.54 billion. — Katrina T. Mina

BoC foils attempts to smuggle onions, sugar, rice worth P15.5M

CUSTOMS OFFICIALS posted to the Manila International Container Port (MICP) seized P15.5 million worth of food shipments from China which were misdeclared, the Bureau of Customs (BoC) said Thursday.

One of the four shipments was declared as 3,300 boxes of fresh apples which the BoCs discovered were red onions after X-ray and physical inspection. According to BoC, the onions were valued at P1.8 million at market price.

Two of the shipments were declared as red beans but turned out to be 5,300 sacks of refined sugar worth P9.6 million.

One shipment, meanwhile, was declared as 1,058 packages of clothing but instead contained 200 sacks of rice, 1,300 packs of other food products, 30 packs of medicine and 425 packs of non-perishable items. The goods were valued at P4.1 million, BoC said.

According to the BoC, the goods arrived at MICP on separate dates in June.

“BoC heightened its efforts against the smuggling of agricultural products in a bid to improve revenue collection and protect our local farmers,” the bureau said in the statement.

Earlier this month, the BoC seized 800 grams of Kush, a strain of cannabis, valued at P1.4 million, hidden in tortilla chip packages.

In February, the Department of Agriculture (DA) said that imported fruit, vegetables and meat brought into the country without proper sanitary permits will be confiscated to protecting the farm sector from the possible entry of animal and plant diseases. — Reicelene Joy N. Ignacio

BoC ordered to form task force to guard against garbage shipments

FINANCE SECRETARY Carlos G. Dominguez III has ordered the Bureau of Customs (BoC) to create a team to guard against future attempts to bring waste material into the Philippines.

“[t]he strike team that he wants at the BoC will be akin to a special environmental strike force that will be activated to guard against the entry of hazardous materials in the country,” the Department of Finance (DoF) said in a statement on Thursday.

“It’s time we put up something like an environmental unit in the Customs (bureau) to really act on this garbage issue,” Mr. Dominguez was quoted as saying in the statement.

According to the Finance Department, Customs Commissioner Rey Leonardo B. Guerrero proposed to his agency’s counterparts in the Association of Southeast Asian Nations (ASEAN) region to cooperate not only on preventing the entry of drugs but also garbage.

The DoF said other countries responded positively to Mr. Guerrero’s proposal.

Between 2013 and 2014, 69 containers with garbage were shipped to the Philippines from Canada. On May 30 the containers were finally shipped back.

“Malaysia was thanking the Philippines for setting the example in this waste problem, because now it has come to the consciousness of the international community,” Mr. Guerrero was quoted as saying in the statement.

Meanwhile, the DoF also noted that the South Korean government has committed to take back 5,176 metric tons (MT) of waste material shipped to the Philippines last year.

The South Korean shipments are currently stored at a PHIVIDEC Industrial Authority site in Misamis Oriental. — Reicelene Joy N. Ignacio