Home Blog Page 9289

Pandemic forces GMA Network to defer 30% of year’s spending

By Arjay L. Balinbin, Reporter

GMA Network, Inc. will defer 30% or around P376 million of its capital expenditure (capex) budget for this year due to the ongoing coronavirus disease 2019 (COVID-19) pandemic, its top official said.

“Around P376 million worth of capex will be deferred due to the COVID crisis, which are composed mostly of equipment upgrades,” GMA Network Chairman and Chief Executive Officer Felipe L. Gozon told BusinessWorld via e-mail on Monday.

In a disclosure to the stock exchange on June 30, the network said it had set a capex of P1.22 billion this year, which will be financed by internally generated funds.

The network is planning to launch more digital channels this year. “The programming of which are seen to complement those of our existing channels: GMA-7, GMA News TV, and our recently launched digital channel Heart of Asia,” Mr. Gozon said.

“Another major project will also be announced soon. It is important to note that all these were conceptualized prior to the COVID-19 pandemic,” he added.

Mr. Gozon said during the company’s annual stockholders’ meeting last week that its newly introduced GMA Affordabox has been selling like “hot pandesal.”

He said GMA is looking to increase the production of the device with the surge in demand.

The device is part of the company’s compliance with the government-mandated digital television shift over the next three years.

Mr. Gozon also said GMA is free of debt as of end-March, emphasizing its “ability to balance ratings growth with sound financials.”

In the first three months of 2020, GMA’s net income plunged by 19% to P583.42 million with the lack of ads and the pandemic-induced quarantine imposed in the middle of March.

Total revenues were down 7% in the first quarter to P3.53 billion. Online advertising sales expanded by 39%, especially from its online news and entertainment sites and YouTube channels.

“In the next months and years, we will see a transformation of the broadcast industry,” Mr. Gozon said, adding it will be “challenging” yet “filled with opportunities to enrich the lives of Filipinos.”

Eagle Cement sets aside P1.5B for new Bulacan mill

RAMON S. ANG’s Eagle Cement Corp. has earmarked P1.5 billion for the construction of its new cement mill in its Bulacan manufacturing plant.

In a statement on Tuesday, the listed cement producer said the fifth cement mill of its San Ildefonso plant will augment the company’s total annual output by 1.5 million metric tons (MT) of cement to 8.6 million MT by yearend.

Last week at the company’s annual stockholders’ meeting, Eagle Cement President and Chief Executive Officer John Paul L. Ang said the company aims to finish the construction of the mill facility by the last quarter of 2020 from the supposed commissioning schedule in the second quarter.

While the company is cutting down its budget for non-critical projects and activities given the economic slowdown, its expansion spending remains untouched.

“Our strong financial position will allow us to weather this health crisis battering the economy without giving up major components of our expansion plans,” Mr. Ang said.

The company noted its current gearing at 0.30x debt-to-equity ratio provided it with the flexibility to fulfill investment plans.

Eagle Cement has “ramped up” production since it resumed operation in June to support the government’s push for accomplishing “critical” infrastructure projects.

“Eagle is fully prepared to supply the steadily increasing demand for cement as more and more construction projects both in the public and private sectors open up,” Mr. Ang added.

The company president is optimistic that construction activities will “rebound” by the second half of the year.

Meanwhile, the cement producer said it had teamed up with an undisclosed international provider of enterprise resource planning (ERP), which will aid the company to further digitalize its operations by putting up an online customer portal.

The future ERP system via an online platform will feature booking, tracking and the arrival of cement orders.

Eagle Cement’s shares inched up 0.51% to close at P9.90 each on Tuesday. — Adam J. Ang

Megaworld says first-half reservations hit P38B

LISTED property developer Megaworld Corp. said it still registered billions from reservations during the first half of 2020 despite the ongoing pandemic-induced lockdowns across the country.

In a statement, Tuesday, the Andrew L. Tan-led company said it booked P38 billion in reservations sales for various residential projects in the first six months of the year, with the second quarter seeing sales hit P17 billion.

Mostly upper-middle market buyers patronized the company’s properties during the strict quarantine months of April to June, said Megaworld’s Chief Operating Officer Lourdes Gutierrez-Alfonso.

“Even during the ‘enhanced community quarantine’ in Luzon during the second quarter, we received a lot of inquiries and reservations via our online channels mostly coming from the upper-mid market,” the official said.

Ms. Gutierrez-Alfonso claimed its digital sales strategies “paved the way for faster, smoother and safer transactions, and client engagements,” albeit, selling real estate during the period was “quite” challenging.

Megaworld noted its provincial properties make up most of the sales booked in the second quarter. Its big-ticket projects added to the period’s reservations sales, including Arden Botanical Estate in Cavite; Eastland Heights in Antipolo, Rizal; Hamptons Caliraya in Laguna; McKinley Hill and McKinley West in Taguig; and other projects in Makati City and Pasig City.

Citing demand pickups, it generated P7 billion in reservations last month for its residential lots in the Calabarzon region, as well as for its residential properties in Boracay Newcoast and Iloilo Business Park.

It opened showrooms nationwide with executing stringent safety protocols, including pre-visit registration, contactless payments, document sanitation, and digital presentations. It also provided clients with personal hygiene kits.

On Tuesday, shares in Megaworld picked up by 1.92% to close at P3.18 each. — Adam J. Ang

DoubleDragon plans sale of $75-million bonds

DOUBLEDRAGON Properties Corp. is planning to offer $75-million fixed-rate senior notes, the proceeds of which will be partly used to finance its capital expenditure projects and maturing loans.

The listed property developer on Tuesday told the stock exchange that it priced its five-year dollar bonds at a rate of 7.25%. It will issue these through its wholly owned subsidiary DDPC WorldWide Pte. Ltd.

This came following the series of investor calls which Credit Suisse and PNB Capital and Investment Corp. arranged for DoubleDragon last week.

It plans to list the Regulation S-only bonds on the Singapore Exchange Securities Trading Ltd. in a still undisclosed date. Regulation S pertains to securities sold outside the United States.

The proceeds from the dollar notes, along with those from its P16.97-billion real estate investment trust (REIT) public offer, are seen to “significantly” augment the company’s cash position, which is at P5.3 billion.

By end-March, the company’s total assets stood at P115.32 billion and total equity was at P44.5 billion. Its debt-to-equity ratio remains “healthy” at 1.01x.

In the first quarter, its earnings fell 42% to P536.69 million after a one-off fair value gain in 2019. Sans unrealized fair value gains, its core net income jumped 133% to P427.94 million.

DoubleDragon tapped Credit Suisse (Singapore) Ltd. as the sole global coordinator for the bond issuance, as well as its lead manager and bookrunner with PNB Capital and Investment Corp.

On Tuesday, shares in DoubleDragon inched down 0.60% to close at P16.48 each. — Adam J. Ang

A music festival might have the solution to safe, live performance

WHEN COVID-19 (coronavirus disease 2019) cases began to ramp up around the world in early March, cultural organizations began to cancel their summer plans.

But the organizers of the Salzburg Festival, one of the world’s most prestigious summer platforms for classical music, opera, and theater, bided their time. “We decided to wait, and developed a series of scenarios for how to [still] make it,” says Lukas Crepaz, the festival’s executive director. “We were thinking, maybe even a single event to celebrate our 100-year anniversary — we didn’t dare hope that we could present four weeks of programming.”

Other festivals continued to abandon their programs. The Verbier Festival in Switzerland was canceled, as was the prestigious Ojai Festival in California. Salzburg canceled its Whitsun festival in mid-April, even as it kept its summer plans open-ended.

The Austrian government continued to ease restrictions. It declared in June that 100 people were allowed to gather, then 250 in July, and up to 500, even 1,000, in August, depending on the venue. Salzburg’s directors announced they would put on an abbreviated program, with 90 performances over 30 days. Austria, which briefly had a spike of 1,000 cases a day in March, has now crushed its infection rate: Just 12 people in the entire country tested positive for the virus on Tuesday, according to a report by the World Health Organization.

Now, as the festival begins rehearsals, its preparations could serve as a template for other performing arts organizations around the world, from Broadway to ballet to philharmonics.

“We did develop very comprehensive prevention concepts, because we want to set a standard that could be adopted by other festivals and concerts after,” Crepaz says. “We are in contact with many Austrian and European institutions, who are obviously looking at how we’re dealing with this situation.”

THE AUDIENCE
The easiest part, at least from a logistical standpoint, was determining regulations for the audience.

Attendees are required to wear face masks until they’re seated, with the number of attendees slashed by about 50%. Seating is arranged in a chessboard pattern, meaning that even couples won’t be able to sit next to one another. Tickets are non-transferable and names will be checked before entry; should an infection occur, authorities can conduct speedy contact tracing. Intermissions and concessions have been removed.

Those restrictions, organizers say, didn’t dictate the program. Mozart’s more than three hours-long Così fan tutte, which will be conducted by Joana Mallwitz starting Aug. 2, certainly wasn’t chosen for its brevity. The program was based on “a dramaturgical vision and on the compliance with federal regulation and security concepts,” a spokesperson says.

Legally, concerts are allowed to offer a concessions stand of some sort, but “we’re aware that during intermissions, it’s really hard to control peoples’ distance,” Crepaz says. “And we decided not to offer anything to eat or drink, because those create hot spots you can’t control easily.”

They’ve winnowed down the venues from 16 to eight, and staggered performances to avoid audience bottlenecks or any sort of crowded overlapping. The venues though, are all the same: The ornate State Theater, the Haus fuer Mozart (a 1,600-seat concert hall that was renovated in 2006), and the massive Großes Festspielhaus (Large Festival Hall) will all be in use. HVAC systems were “assessed with experts and adapted where necessary,” a spokesperson says, though he notes that “only 50% of the normal audience capacity will be admitted; therefore, the outside air stream per hour is up to 2.5 times as high as before.”

THE ARTISTS
When it comes to the festival’s staff and performers, things get trickier.

It’s very hard to have a socially distanced 30-person chorus, and it’s even hard to have a socially distant orchestra, whose proximity is not only a logistical necessity — orchestra pits aren’t famously roomy — but also an artistic one. It’s easier to play together when you sit together. Masks, for obvious reasons, are often impossible: No one’s going to play the oboe behind an N95 mask, although a conductor, or even a string quartet, might be able to swing it, Crepaz says.

Then consider rehearsals and such people as the choreographer, who is normally close to — if not touching — various dancers, and the director, who’s often in close contact with performers as they work out a scene’s mechanics.

Finally, there are the performers themselves: Actors and singers, generally speaking, are supposed to interact at distances smaller than Austria’s sanctioned one meter. Given the now-storied history of choir members infecting each other and their audiences, “there will be a minimum distance of two meters between the people onstage and the audience, but that’s the minimum,” Crepaz says. “With choirs, they will be at a greater distance from the audience.”

The Salzburg festival’s solution, Crepaz says, was developed in coordination with a group of health professionals that included specialists in clinical microbiology and hygiene, the head of pulmonology at the Salzburg University Hospital, and the head of internal medicine at Salzburg’s Paracelsus University of Medicine.

Their solution: Break staff into three groups.

The first unit is the “red” group — performers who, for the aforementioned reasons, are unable to comply with Austria’s social distancing rules. Even before they come to rehearsals, they’ll be tested and screened within four days. “They’re expected to have a health log every day, along with a diary and contact log: With whom did they stay in intense contact?” Crepaz says. In that way, organizers hope, the people in the riskiest roles can start safe and stay safe. (They are not expected to quarantine at home between rehearsals.)

The “orange” group comprises the festival’s temporary staff and some artists who might not be able to keep a one-meter distance from one another, but who are able to wear masks. These are artists performing recitals alone onstage, and even some chamber music groups. This group will also be tested and screened on arrival in the city and is expected to maintain health and contact logs.

The final, “yellow” group covers festival staffers and artists who can remain socially distant and wear face masks at all times. They will also be tested initially, but they won’t have to keep logs or undergo screening.

Some rehearsals, Crepaz says, “will take place outside, and initial rehearsals will be done with more distance.” In terms of actual choreography, “I don’t want to reveal too many parts, because it could have a role in one of the operas’ staging.”

Asked whether the festival has a contingency plan if these measures fail, and the concerts turn out to be enabling broad spread of the novel coronavirus, a spokesperson says “the festival believes the procedures it has in place will work to ensure that the festival is a success for both its artists and audience.” Should something go wrong, the spokesperson continues, “the festival has a contingency plan for different scenarios,” though he declined to elaborate on them.

BUT WILL IT WORK?
There are three key ways to measure the efficacy of Salzburg’s efforts: Audience members have to buy tickets, the reorganization has to make enough money to justify the cost of putting on the performances, and, most important, people — attendees and artists alike — can’t get sick.

Unless something goes wrong during rehearsals, organizers won’t have an answer to the third question until after the performances have concluded, but the first two — ticket sales and profitability — are easier to answer.

The bad news is that “we’re losing a lot of money” under the new arrangement, Crepaz says. The good news is that the festival has been able to modify its budget accordingly, without going into the red. “We had a budget of €68 million ($78 million). Now our budget is €41 million, and that only works if you cut costs at every point in the budget.”

One of the easiest ways to cut, he says, was to postpone multiple operas to next year. “It’s not a secret that opera productions are much more expensive than concerts or other, smaller productions,” he says. “So we’re limiting ourselves to two productions in opera and three productions in theater, and the rest is concerts.”

In postponing five of this summer’s planned operas, he continues, the festival has been able to more or less break even. “If we were only an opera festival, I think it wouldn’t have been feasible,” Crepaz says. “If you have the full cost of putting on an opera, and your box office income is reduced by 50% or more, you couldn’t afford to go on. In a couple of weeks, you’d be bankrupt.”

As for ticket sales, the festival had sold 180,000 tickets in advance; with the modified schedule and seating arrangements, it had to refund all of them and start from scratch.

Under the new arrangement, the festival’s total capacity is a mere 76,000 tickets. Using an algorithm, it gave the original ticket purchasers the option to buy about 50,000 of the new tickets, and all were sold. Some 26,000 went on sale on Monday to the general public. “We’ve gotten a huge response from our audience,” Crepaz says. “People really want to come.” A spokesperson for the festival says that the majority of ticket buyers are from Austria and Germany.

The success (or failure) of this year’s festival, Crepaz concludes, boils down to responsible behavior.

“What really counts is personal responsibility,” he says. “That means all of us, including the audience, have to behave in a way that keeps the pandemic as low as we have it now.” — Bloomberg

Report anti-competitive firms benefiting from crisis — PCC

THE Philippine Competition Commission (PCC) is urging the public to report companies’ anti-competitive behavior to reduce the risk of businesses taking advantage of the crisis through price fixing.

PCC Enforcement Office Director Orlando P. Polinar said in a phone interview on Monday that he also expects more voluntary compliance from the private sector to follow competition rules.

The commission created a resource page on its website to guide the public and companies on its regulations and mandate.

Mr. Polinar said that it launched the page in support of economic recovery while businesses deal with losses.

“The message here is that firms should not use the COVID-19 pandemic as a pretext to engage in practices that will undermine market competition and take advantage of consumers who also continue to suffer from financial challenges.”

He said experiences from other jurisdictions show how emergencies and crises lead to a spike in business practices leaning towards collusion and price fixing.

PCC Chairperson Arsenio M. Balisacan in May warned against unchecked price controls that could be used as a reference point for collusion, noting that declining business profits during crises at times fuels collusive behavior.

While temporary cooperation among firms could be beneficial in improving efficiency in producing essential goods, Mr. Balisacan said there is a possibility this may lead to price fixing.

Starting this month, PCC will release enforcement advisories to guide the public on business practices, as well as advisory letters to companies being assessed for possible practices that could violate Philippine competition law prior to a formal inquiry.

The commission’s enforcement office is currently limited in its field work capacity given public health risks. Employees mostly continue their work through technology and interview-based investigations.

Mr. Polinar explained that the online resource page would also guide individuals that have been reporting consumer protection violations, instead of anti-competitive abuse.

The website lists anti-competitive behaviors that could harm consumers, including price fixing, predatory pricing or selling goods below cost to drive out competitors, excessive pricing, bid-rigging, or limiting output.

“Not just despite of the pandemic but especially during the pandemic, there is a need…. to protect consumers from anti-competitive conduct and practices,” he said.

The Trade department said that it saw a spike in online transaction consumer complaints during the lockdown. — Jenina P. Ibañez

Ballet Philippines launches new website

with performances and classes to maintain presence during pandemic

BEFORE THE pandemic hit, Ballet Philippines (BP) had grand plans and a hefty P74-million budget for its 51st season which included the introduction of a new artistic director, an announcement that caused a controversy and crisis on its own. Then the stages closed and performances were canceled because of health and safety restrictions thanks to the COVID-19 (coronavirus disease 2019) pandemic, halting all of the dance company’s plans. But BP isn’t going down without a fight as with a revamped website it’s trying to make sure “to keep and maintain BP’s presence in everyone’s minds,” the company said in an e-mail.

“The birth of BP OnStream [is] a testament to BP’s determination to continue bringing to their audience enriching and relevant content while keeping the love and practice of ballet alive,” BP said in a release.

The website (ballet.ph) will feature exercise tutorials, lectures, and masterclasses. It will also be an avenue to discuss “lifestyles, personalities, health tips, and all relatable subjects,” Ballet Philippines told BusinessWorld in an e-mail on July 18.

Most importantly, the new website is the company’s new virtual stage, featuring performances from Ballet Philippines’ 50 year history. Its maiden offering is Opera, the ballet adaptation of Gabriel Barredo’s art installation of the same name. The 2016 production with choreography by Redha is touted as one of BP’s finest productions, in the words of its president, Kathleen L. Liechtenstein.

The website is the only stage BP will be able to perform in currently seeing that the Cultural Center of the Philippines’ stage is closed until December.

“It was the threat of COVID-19 that propelled us on what you may call our determination to survive and keep ballet alive. While some may say that dance and the arts are non-essentials during a pandemic, we beg to disagree. On the contrary, dance and the arts become even more vital during these unprecedented times,” Ms. Liechtenstein said during the site’s digital launch on July 14 via Zoom.

She explained that “art is the language of the soul [and] if that is squelched, all else falters and dies.”

STUCK IN MOSCOW
Because of travel restrictions brought about by the pandemic, Ballet Philippines’ new artistic director Mikhail Martynyuk wasn’t able to come to Manila, therefore his training and exercises have been done online. The company’s dancers have also been dancing from home.

In February, Ballet Philippines announced that Russian dancer and choreographer Mikhail “Misha” Martynyuk would be replacing National Artist for Dance Alice Reyes — the founder of Ballet Philippines who had returned to the company to mark its 50th anniversary — as the company’s artistic director.

BP Board Chair Antonio C. Cojuangco previously said that the appointment of Mr. Martynyuk, which set a fire under ballet patrons and artists alike on social media, was meant to improve Ballet Philippines saying, “we’re not the best in ballet. We may be good but we’re not the best,” signalling the need for a Russian artistic director trained in the Vaganova style.

(Read more: https://www.bworldonline.com/the-russians-are-coming-the-russians-are-coming/ and https://www.bworldonline.com/total-fail-how-communication-breakdown-broke-ballet-philippines-leg/)

The 51st season had a lot going for it, the company told BusinessWorld. They had planned five “extravagant” productions on the back of a P75-million budget — in contrast, the 50th season only had P14 million — but the pandemic threw a wrench in those plans. But not all of it though, as Mr. Martynyuk decided that this would be the best time to hold masterclasses conducted by artists from around the world.

“Thanks to the fact that online conferences became very popular and not replaced at this time. I invented a project for BP — Masterclasses from around the world,” he said during the digital conference.

Online masterclasses, he said, are easier to mount as they wouldn’t have to fly artists into the Philippines to conduct them.

Among those conducting the masterclasses are Eduard Akhmetshin, principal dancer and teacher at the Ballet Moscow Theater, George Bikdaze and Joy Womack of the Boston Ballet School, and Liza Macuja-Elizalde, artistic director and CEO of Ballet Manila.

This season’s guest dancers, Joseph Phillips and Joshua Serafin, will also be holding online training and rehearsals.

Mr. Martynyuk also announced plans for an online performance to be released late this year or early next year, before saying that performances lined up for the season “will resume” once everything is back to normal.

“I think right now is a new era for the company. And it’s very, very exciting because this is the first time that Ballet Philippines is really opening the doors for the rest of the world,” Mr. Phillips said during the conference, adding that having dancers from different backgrounds is “so important for all the dancers” because they get to “experience different cultures and grow.” — Zsarlene B. Chua

RTB sales exceed P250 billion

THE GOVERNMENT has sold more than P250 billion in five-year retail Treasury bonds (RTBs) four days into the offer period, already exceeding the “new money” raised in February, amid strong demand for state debt.

National Treasurer Rosalia V. de Leon said in a Viber message on Tuesday that the government already raised more than P250 billion via the five-year RTBs, which carry a coupon rate of 2.625%.

This is over P57 billion more than the initial P192.71 billion raised at the rate-setting auction on Thursday.

“(The) new money (raised in the latest offer has) exceeded the P250-billion new money (sold in) February,” Ms. De Leon told reporters.

However, Ms. De Leon did not disclose the exact amounts raised so far in new money and via the exchange offer component of the RTB offering. She has said they will not set a target volume for the offer.

This is the second time the Bureau of the Treasury (BTr) is offering retail bonds this year. The government raised a record P310.8 billion via three-year RTBs in February — P250 billion in new money or fresh funds and P60.8 billion from the exchange offer program.

RTBs target small investors and are deemed as low-risk assets with relatively high returns.

Investors can still buy the debt papers in denominations of P5,000 through selling agent banks and several online platforms. The public offer period is set to run until Aug. 7, unless closed earlier.

The Treasury also opened an exchange offer program for holders of the RTB 10-01, FXTN 05-73, RTB 10-02 and FXTN 07-57 who want to swap their old bonds for the new RTBs. The total amount of bonds eligible for swap is around P321 billion.

The retail bonds will be issued on Aug. 12 and will mature on Aug. 12, 2025. The papers will be listed on the Philippine Dealing and Exchange Corp.

State-run lenders Land Bank of the Philippines (LANDBANK) and the Development Bank of the Philippines (DBP) are the joint lead issue managers for the transaction.

The joint issue managers are LANDBANK, DBP, BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., PNB Capital and Investment Corp., RCBC Capital Corp., SB Capital Corp. and UnionBank of the Philippines, Inc. — BML

Aboitiz unit speeds up construction of water project in Davao

ABOITIZ UNIT Apo Agua Infrastructura, Inc. has sped up the construction of its bulk water supply project in the Davao City Water District.

In a statement on Tuesday, Apo Agua Operations Head Shake A. Tuason said the company is targeting to complete the project by 2021 while prioritizing the health and safety of its employees.

“We are ramping up our construction activities while implementing the appropriate health protocols in our offices and project sites per government guidelines,” he said.

In response to the decision to fast-track project construction, Mr. Tuason said the company plans to hire 3,000 additional workers by November this year.

Apo Agua has so far signed about 1,500 personnel for the water project. After the target hiring, the project’s manpower will be at 4,500 people.

“We are glad to assist our fellow Davaoeños during this challenging time by helping provide a much-needed source of livelihood,” Mr. Tuason said.

He said the additional manpower is to help hasten the completion of “Part A” of the water supply project handled by Apo Agua.

Part A includes the construction of raw water facilities, hydroelectric power plant, water treatment plant, treated water pipelines, and facilities for various off-take points in the city.

The manpower requirement comes after construction was temporarily suspended in April in compliance with the enhanced community quarantine imposed in Davao City.

The company said the project’s construction activities resumed in May after the National Government released guidelines that permitted construction works for water projects to continue.

Meanwhile, Apo Agua said it is in search of skilled workers such as carpenters, masons, steel men, rebar fitters, pipefitters, machine and equipment operators, signalmen, watchmen and utility personnel.

In 2015, Apo Agua entered into a bulk water supply agreement with the Davao City Water District to provide a more sustainably sourced surface water from the Tamugan River and change the city’s dependence on groundwater wells.

Once operational, the water project will provide over 300 million liters of water daily to more than one million Davao City residents. — Revin Mikhael D. Ochave

BSP urges banks to prioritize sustainability

THE BANGKO SENTRAL ng Pilipinas (BSP) is urging lenders to prioritize sustainable sectors and activities, especially amid the current crisis.

“For banks, it means that it must refocus its strategy towards sectors and activities that support sustainable recovery. By harmonizing sustainability with recovery efforts, banks can seize various opportunities,” BSP Governor Benjamin E. Diokno said in a keynote address on Tuesday at the World Wide Fund for Nature and Bankers Association of the Philippines CEO Forum on BSP’s Sustainable Finance Framework.

The BSP in May launched its sustainable finance framework and said banks will be given a three-year period to adopt its provisions.

The guidelines include banks’ adoption of sustainability principles through environmental and social risk management systems as well as Environmental, Social and Governance considerations in their governance frameworks, risk management systems, strategies and operations.

Part of this sustainability drive is launching financing instruments meant to help sectors affected by the crisis such as micro-, small- and medium-sized enterprises (MSMEs), health, education and food security.

“Channeling funds to support these sectors can help boost the country’s response to the pandemic and fast-track our recovery,” Mr. Diokno said.

Last week, the Bank of the Philippine Islands cut short the offer period for its COVID Action Response or CARE Bonds amid strong demand. The bank said subscriptions already went beyond the P3 billion it initially targeted to issue. The proceeds raised will be used to finance eligible MSMEs under the lender’s own Sustainable Funding Network.

Mr. Diokno added that boosting digital banking and financial inclusion can also affect sustainability as businesses and clients turn to online platforms and transactions amid the lockdown.

Moreover, he said banks will learn lessons from this health crisis to develop and strengthen their environmental and social risk management.

“The pandemic has features akin to climate and other environment-related risks. It requires science-based data and has underlying physical and transition risks,” Mr. Diokno said.

“Environmental and social risks arising from the health crisis offers a glimpse of how severe and long-lasting other potentially systemic risks such as climate change may drag the banks’ performance and long-term growth,” he added. — L.W.T. Noble

AgriNurture acquires 51% of IT company Pay8, Inc.

LISTED agricultural firm AgriNurture, Inc. (ANI) has acquired 51% of information technology (IT) company Pay8, Inc. in efforts to serve farmers living in rural areas across the country.

In a disclosure to the stock exchange on Tuesday, the company said it had forged a memorandum of agreement with Hatchasia, Inc. and Pay8, Inc. for the acquisition of P377.91 million of the latter’s authorized capital stock.

ANI said the acquisition is part of its plan to complete the agricultural ecosystem it envisioned. Further, the company said the financial platform that will be introduced aims to reach the farmers in the “unserved” rural areas of the country.

“The valuation, among other standard matters, shall be subject to ANI’s conduct of due diligence before the execution of definitive agreements. Further, other matters such as the mode of acquisition shall be finalized after satisfactory outcome of due diligence,” the disclosure said.

According to the disclosure, Hatchasia Inc. is a major shareholder of Pay8, Inc. The two companies are engaged in information and technology that provide multiple systems of ad platforms to various industries. — Revin Mikhael D. Ochave

Gavel&Block auction to benefit Hands on Manila, Escuela Taller

A PANDEMIC does not seem to freeze the movement of art, for Salcedo Auctions subsidiary Gavel&Block is going on its fourth online auction titled “Interiors.”

The auction, featuring lots ranging from art to home decor, will have about 700 lots up on the block on Saturday, July 25, at 11 a.m.

About 100 of these items, as shown in an online vernissage last Saturday, will serve to benefit volunteer organization Hands on Manila Foundation, Inc. (HOM).

“Operating for close to two decades in the Philippines, HOM specializes in mobilizing communities through their volunteer programs. Patterned after the Points of Light affiliates in the United States, and now in different continents, HOM is the first international affiliate in the world,” said a release.

Meanwhile, HOM President Lizette Cojuangco said during the Zoom call that HOM promotes volunteerism by teaching volunteers leadership skills and providing programs in the areas of education, the environment, livelihood, and health. “With the current situation we have, it is imperative that we mobilize volunteers to address COVID-related issues,” said Ms. Cojuangco. She said that early during the pandemic, they have responded by providing for the needs of frontliners by way of transportation and donations in cash and in kind (in the form of equipment and food). “This time, Hands on Manila aims to promote COVID-19 food security solutions through sustainable programs like urban and rural gardening,” she said.

Another special section of the sale will be devoted to the Bid for the Future fundraising program for Escuela Taller de Filipinas Foundation, an NGO that trains underprivileged youth with the skills needed for cultural heritage preservation.

The lots that are earmarked for the benefit of HOM, along with the other lots, are available for viewing at Salcedo Auctions website. Among these, there are four items that are sure to generate a lot of interest. A Jose Joya work in acrylic on paper titled China Sea has an estimate of P1.45 million to P1.55 million. Two paintings by Betsy Westendorp (No. 714 — 1993 and Orquidsis No. 1471-2018) have estimates that range from P850,000 to P950,000. Meanwhile, one of the Crucifix paintings by National Artist Ang Kiukok has an estimate of P1.2 million to P1.5 million.

Other works up on the block are pieces by National Artists Vicente Manansala, Benedicto “BenCab” Cabrera, Federico Aguilar Alcuaz, and Cesar Legasi. There are also works by Mauro “Malang” Santos, Juvenal Sanso, Gus Albor, Romulo Olazo, and Ramon Orlina. Also up for grabs are a Zobel watercolor, sculptures from National Artists Arturo Luz and Guillermo Tolentino, an untitled work in ink on paper by Roberto Chabet, and an acrylic painting by National Artist for Sculpture Abdulmari Imao titled Sarifish.

On the Interiors theme, antiques such as vases and Art Deco settees are also up on the block, as are pieces from Lalique and Lladro. A bit unusual are cookware (they’re still part of the interior, after all), as are a set of gold-plated cutlery. Antique silver also accompanies this hoard, as are pieces from Baccarat. — Joseph L. Garcia

Handbags from Dior, Prada, Louis Vuitton, and Chanel are also included among the lots.

Salcedo Auctions director Richie Lerma indicates that the entire hammer price of the lots dedicated to HOM will go to the organization. However, he does make clear that while some of the items are full donations to the organization, some lots are partial donations.

Asked about the relevance of auctioning off art during a pandemic, he points not just to the potential buyers, but also the people selling their own pieces. “There is an ongoing need, of course, given everything that’s happening,” said Mr. Lerma. “Art allows all of us to be able to unlock value, and through that value, it allows us to be able to contribute; to help others… most of these things, people just have sitting around at home. Given a venue where one could present or share all of these pieces, where they can be sold, either in whole or in part, that could go towards helping others — I think that’s a wonderful thing to have.”

He also points out: “People also have, given the current situation, very different reasons as well, whether it be financial, an estate issue that they’d like to settle, or simply being able to unlock value; to be able to continue to enjoy a certain modicum of comfort in these unprecedented times.

“We don’t see these as being incongruous to what’s happening today. In fact, we feel that we fill in a need for people.”

“Interiors” by Gavel&Block forms part of the continuing commemoration of Salcedo Auctions’ 10th anniversary. To join the auction, one should register through salcedoauctions.com/auctions. — Joseph L. Garcia