Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 9637

Eagle Cement net income hits P4.8 billion in 2018

EAGLE Cement Corp. continues to expand its capacity amid rising demand for cement. — EAGLECEMENT.COM.PH

EARNINGS of Eagle Cement Corp. jumped 13% in 2018, supported by a double-digit growth in sales volume despite higher input costs for the latter part of the year.
In a statement issued Wednesday, the listed cement manufacturer said net income climbed to P4.8 billion last year, following an 11% increase in net sales to P16.5 billion.
Earnings before interest, taxation, depreciation, and amortization went up by 9% to P6.8 billion, even as the company recorded higher input costs in the second half of 2018.
“While we are faced with challenges in the industry, we remain steadfast to expand the Company to meet the increasing local demand for cement, driven by the thriving property sector, growth in consumption, as well as the anticipated roll out of government’s infrastructure projects,” Eagle Cement President and Chief Executive Officer John Paul L. Ang said in a statement.
Eagle Cement reported a 36% profit increase to P1.3 billion in the fourth quarter alone, versus the P964.8 billion it posted in the same period in 2017. The company was able to generate record sales for the period at P4.3 billion, 19% higher year on year.
“We expect the momentum to continue, as Eagle sets the stage for the next cycle of growth for the company. We seek to continue to invest in expanding our market reach to become a nationwide player,” Mr. Ang said.
Eagle Cement hopes to bring its annual cement capacity to 8.6 million metric tons by 2020, from the completion of an additional grinding capacity of 1.5 million metric tons from its Bulacan plant.
The company is also constructing its fourth cement line in Cebu as it tries to get a larger share of the Visayas and Mindanao market. The facility in Malabuyoc, Cebu will have a capacity of two million metric tons.
Shares in Eagle Cement rose 0.63% or 10 centavos to close at P15.92 each at the stock exchange on Wednesday. — Arra B. Francia

Metrojet invests $25M in Clark facility

METROJET LTD. started on Wednesday the construction of its aviation parking and maintenance facility in Clark, Pampanga, targeting its opening by second quarter of 2020.
The Hong Kong-based firm said it is investing $25 million to build the 26,000-square meter (sq.m.) facility, which is eyed to become its hub for all of its operations in Asia.
“This is the largest in our 21-year history, largest single investment in behalf of Metrojet and the Kadoorie Group in aviation. We’re very, very excited about this. It shows our long-term commitment to the business and to the Philippines, and in particular, to the Clark region,” Metrojet Chief Executive Officer Gary Dolski told reporters after the groundbreaking ceremony.
Metrojet is a business jet operator with presence in Hong Kong, the Philippines, Singapore and China. It offers maintenance, repair and overhaul services to its aviation clients.
Mr. Dolski said they have a 50-year lease contract with the government for the Clark facility, which is their second facility after Hong Kong.
“This will be our largest facility and this will be where we will do our base maintenance. Currently, Hong Kong, where we’re based at for many, many years, it’s a congested airport…. Which is why we are doing something over here,” he said.
He added that the location, relative to Metrojet’s area of operations, and the support of the government, are the main factors why they chose Clark.
“Clark in the Philippines is a very good area for us to grow,” Mr. Dolski said.
The facility will have a maximum capacity of 10 long range business jets, with 7,100 sq.m. of its floor space dedicated for the hangar, 2,500 sq.m. for customer accommodation and storage and 11,000 sq.m. for taxi-way and parking ramp.
Metrojet is tapping Aircraft Support Industries for the construction of the facility and MERx Construction Management Pte. Ltd. for the design and build of the project. — Denise A. Valdez

Top Philippine managers keep faith as once hot stock market gets cold

JUST a month ago, Philippine shares were flirting with a bull market. Then came the brutal breakup and since then, they’re back to being some of the world’s worst performers.
But the nation’s biggest fund managers are closing an eye on the reasons for the sell-off — a re-balancing of indexes and last year’s corporate earnings that weren’t good enough. Instead, they’re doubling down on Philippine equities on bets that slowing inflation and a growing economy will help the market.
BDO Unibank, Inc., the country’s largest money manager with $20 billion, is scooping up laggards with cash from some of its gainers. ATR Asset Management, Inc., which runs the nation’s best-performing fund this year, is adding to its winners while cutting back on picks that haven’t paid back as much.
“This is a good time to rotate the money from those that ran up sharply and plow it into laggards that promise growth this year,” said Fritz Ocampo, BDO Unibank’s chief investment officer. “Inflation is falling, while the outlook for accelerating economic growth is getting better. This isn’t time to get out.”
The Philippine Stock Exchange index lost as much as 6.2% from a 10-month high on Feb. 1 as investors had to modify their holdings to reflect changes in equity benchmarks. Those for the PSEi and MSCI Philippines Index already happened, while tweaks in FTSE gauges will take effect in mid-March.
But this week things are looking better. First, data showed that inflation slowed for a fourth month in February. And then, the president named a new central bank governor, Benjamin Diokno, who is seen as favoring lower interest rates and a weaker peso. When he was budget chief, he advocated for robust state spending to spur growth.
“Diokno’s appointment bodes well for the Philippine economic growth story and equities,” said Julian Tarrobago, head of equities at ATR. “What would be very interesting under his watch is how the government will monitor, address and manage the fiscal imbalances that will come about from a strong pro-growth strategy.” — Bloomberg

Philippines’ AG&P dominates LNG business in south India

FILIPINO FIRM Atlantic Gulf and Pacific Co. (AG&P) said on Wednesday that it had emerged as the dominant player in south India’s liquefied natural gas (LNG) business after it secured nine licenses in the 10th round of auction of city gas distribution concessions by the regulatory board.
“AG&P is only one of two foreign companies to secure the coveted agreements to deliver natural gas directly to the residential, commercial, industrial and transport sectors in some of India’s most densely populated states,” the 119-year-old Philippine-based company said in a statement.
AG&P said the 25-year exclusive rights cover natural gas pipelines to residential users, supply for commercial establishments and compressed natural gas (CNG) stations for cars, buses and trucks in the districts of Andhra Pradesh, Tamil Nadu, Kerala, Karnataka and Rajasthan.
The announcement comes as the global gas logistics company looks towards the Philippines for participation in infrastructure construction for the energy, transport and civil work projects under the government’s massive “Build, Build, Build” program.
“AG&P is very excited by this tremendous opportunity, which ultimately is a serious responsibility to the people and businesses in our geographic areas,” Joseph M. Sigelman, AG&P chief executive officer, said.
He said the company has started mapping the routes of its lines in each area, and crafting an implementation plan to be rolled out in the next few months.
“The roll-out of the project will include the installation of infrastructure making the following possible across the 28 districts we have been awarded: piped natural gas (PNG) for use in domestic households; PNG for for industrial and commercial use; CNG stations supporting use as an automotive fuel; delivery of LNG by truck to service various customer segments,” PPG Sarma, AG&P’s managing director for the city gas distribution and logistics business, said.
“The investments will be substantial and phased over time as construction of the infrastructure gets underway, with a projected investment of $1.3 billion,” he added.
AG&P’s city gas distribution networks are expected to bring significant foreign direct investment and generate direct and indirect employment across India. The construction of the networks is also seen to create thousands of local jobs. — Victor V. Saulon

Coffee like mother used to make


COFFEE is as much a staple in some Filipino homes as rice. However, the minute a Pinoy steps out of the house, there’s hardly any way to get the taste of home — instead we’re inundated with every other cosmopolitan caffeine fix out there. KapeTayo Coffee then, gets the way a Filipino mom likes her coffee, and offers it to the rest of the country.
KapeTayo Coffee, a café with multiple branches (its flagship is in UP Town Center; the rest are in SM Marikina, Maginhawa, VT Hospital Marikina, the Boracay-Kalibo International Airport, and Ateneo de Manila University) takes a cue from these large, international players and sees if Filipino coffee can be replicated on that scale.
Brian Tenorio, CEO of KapeTayo Coffee, is proud to say that his brand is 100% homegrown. While one may argue that Filipino-owned coffee chains do exist, Mr. Tenorio points to three pillars that identify his brand as Filipino: brand, bean origin, and brew.
For starters, he points out that other coffee chains are not tied to a distinctly Filipino identity: it’s either Italian or generally Western-inspired. This bleeds into their brews: for example, Mr. Tenorio does not use the Italian espresso techniques for his coffee, but instead uses brewed or pour-over techniques, which replicates more closely the Filipino way. Finally, his beans are all from the Philippines, from multiple sources from Abra to Zamboanga. He notes, “There’s no secret to the beans.”
“It’s really about the recipes and the presentation.”
Mr. Tenorio, who opened his first Marikina branch in 2015, recounts how he started. He was doing a venture in tea with some people, then realized that he didn’t even drink tea.
As for the brand’s name, he points to the “tayo” (we), that suggests inclusivity. “I have a very strong affinity for the concept of ‘us.’”
Take for instance, his Kapeng Ginto, sold in three sizes: Puwede, Sakto, and Panalo. Sweetened with Philippine honey and muscovado, it is pale and the scent is familiar. The taste is even more so, bringing me back to a Sunday morning as a nine-year old. Mr. Tenorio said that the recipe comes from his mother, who drank her coffee this way. Mr. Tenorio, who was once better known for his work in design (shoes, jewelry, designer coffins, even — name it), said, “I know it’s just right if it’s a particular color.”
“I think Filipinos naturally; unfortunately, have a certain level of insecurity,” he said about why the concept has not been picked up before. There’s a thought that foreign coffees — or brands of any sort — are better, but he says, “Maybe it’s colonialism; I don’t know… but then again, that doesn’t make it good for a country, in terms of business.”
His goal at the end is to export the brand to the rest of the world: maybe the same way Jollibee has become an unofficial ambassador.
“We export a lot of beans,” he said about the coffee industry. “But the profitability of exporting beans is cents to a kilo; or cents to a gram. But once a country exports brands, then there’s more profitability for the things they export.
“We’ve brewed your beans together with meaning and context,” he said.
While coffee has been used to sweeten deals, and urge a person to rise, can a cup, just by itself, change the world? “I don’t know,” said Mr. Tenorio. “But what I do know is that we try.
“I’m not sure if a cup of coffee can change the world. But I do understand that a cup of culture, heritage, and feelings will make a difference.” — Joseph L. Garcia

Solar Philippines secures ERC go signal to raise rates by 2% annually

By Victor V. Saulon, Sub-Editor
SOLAR Philippines Tarlac Corp. has secured the regulator’s approval to raise by 2% annually the P2.999 per kilowatt-hour (kWh) electricity rate it signed with distribution utility Manila Electric Co. (Meralco).
In an order promulgated on March 4, 2019, the Energy Regulatory Commission (ERC) has reversed its initial ruling that disallowed the annual price escalation after Solar Philippines presented evidence proving that even on the 20th year of the power supply agreement (PSA), the rate at P4.4577/kWh will still be the lowest among the previously approved applications for solar power plants.
“The Commission likewise took note that under [Solar Philippines’] proposal, the rate of return over the project’s 20-year term is only 0.05% which is much lower than the rate of return allowed by [it] in other applications,” the ERC said.
The regulator also noted that the project is not foreseen to earn any profit until several years from the start of operation. Denying the 2% annual escalation, which is part of the rate agreed by the contracting parties will deny Solar Philippines the opportunity to recover its investments in the project, the ERC said.
The ERC said a denial is deemed inconsistent with Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA), which mandates the commission to “fix rates that will allow the recovery of just and reasonable costs and a reasonable return on rate base” for investors to operate viably.
The commission also said that its current policy in evaluating PSA applications is to arrive at the generation rate after employing the cost-based methodology. It said Solar Philippines’ proposed rate of P2.999/kWh “was found to be significantly lower” than the calculated generation rate computed by the ERC using the said methodology.
The ERC ruling comes after the regulator issued an order on Feb. 20, 2018 provisionally authorizing Meralco and Solar Philippines to implement their PSA at the agreed rate but without the annual adjustment or escalation.
Solar Philippines is the price challenger to an offer made by Citicore Power, Inc. to Meralco for solar power at a price of P3.7144/kWh and a 2% annual price escalation. Citicore did not match Solar Philippines’ offer of P2.999/kWh.
On June 29, 2018 Meralco filed a manifestation wherein it informed the ERC of Solar Philippines’ refusal to accept the February order because of the disallowed 2% annual escalation rate.
On July 3, 2018, Solar Philippines filed a motion for partial reconsideration wherein it said, among others, that even with the application of the annual escalation, the PSA rate is still significantly lower than the prevailing feed-in-tariff rate for solar energy at P8.69/kWh and the approved rates for other solar power plants.
Solar Philippines had said should the price escalation still be rejected, the company should instead be allowed to charge the levelized average rate of P3.7144/kWh, a price Meralco objected because it was not the one agreed during the price challenge process.
Solar Philippines also sought to move the timeline for the performance of its obligation under the PSA from December 2017 to February 2018. It also said that for the first 10 years of the PSA, and based on the ERC’s simulation, the rates range from P2.999/kWh to P3.6569/kWh — all of which are lower than the 20-year average of the PSA amounting to P3.7144/kWh.
The company said without the escalation, the agreement will be financially unviable to the prejudice of Solar Philippines and the consuming public.

Too many cooks make a good paella


ON March 17, 2018, the annual Festival de la Paella Gigante brought together chefs from many of the metro’sa hotels, restaurants, and culinary academies to pool their skills in creating, as the event’s title clearly stated, a giant paella. It was a night of smoke and music, dance and wine, and, of course, good paella.
On March 16 this year, the 7th Festival de la Paella Gigante will again be held at the Greenbelt 3 Park, on from 5 p.m. onwards.
The Festival is organized by Sociedad Española de Beneficencia in collaboration with the LTB Philippines Chefs Association, the Ayala Malls, and various other sponsors. That evening, the LTB chefs will be cooking a gigantic paella that is approximately 11-feet in diameter.
Aside from the paella, there will be food booths at the perimeter, and performances.
Sociedad Española de Beneficencia is an NGO founded in 1948 by Spanish nationals to principally address the needs of elderly Spanish residents in the Philippines. This annual gathering raises funds for the care of the elderly beneficiaries.
Given the Festival’s popularity, it is recommended to pre-purchase the P400 tickets by e-mailing the number of tickets one needs along with a copy of a deposit/payment slip made to the Sociedad’s account, and one’s mailing address. For more details, e-mail sociedadespanolabeneficencia@gmail.com.

Lenovo opens first Legion concept store in PHL

Lenovo Legion Y740
Lenovo Legion Y740 (15-inch)

By Zsarlene B. Chua
Reporter
HONG KONG-BASED technology company Lenovo has opened its first Legion concept store in the country in an attempt to strengthen the company’s local gaming segment.
Located at the fourth floor of the Annex building of SM City North EDSA in Quezon City, the less than 40-square-meter space features Lenovo’s Legion-branded gaming computers and functions as an “experience zone” so gaming enthusiasts can try the products for themselves.
The brand also plans to host “mini gaming tournaments to further engage the local gaming community,” according to a press release.
The space will also introduce other Legion-branded gaming peripherals in the near future.
“[We want to open] as many as we can [but] it relies on available spaces… I want the store to open, the third store to open and even the fourth [this year] but it depends,” Michael Ngan, Lenovo Philippine general manager told BusinessWorld during the launch on Feb. 28.
Since the launch of Legion in 2017, Mr. Ngan said the company is bullish on trying to gain market supremacy in the gaming segment as the Lenovo sees the Philippines as a growth space for the company’s gaming sub-brand.
In fact, Mr. Ngan said they are lobbying to have Lenovo host its annual Legion of Champions in the Philippines. Legion of Champions is one of the biggest Asian e-sports tournaments and is currently on its third year. It was held in Thailand in January.
“We’ve had a lot of customers asking why don’t we host [the tournament] in the Philippines…so I’m lobbying that we can have the opportunity to host the fourth edition here in Manila,” he said.
Aside from the opening of the concept store, the company also launched the new Legion Y740 gaming laptop, the company’s first device to have NVIDIA GeForce RTX graphics card. The graphics card combined with its Intel Core i7-8750H processor, the Y740 claims to be able to easily handle graphics-intensive games such as Shadow of the Tomb Raider, Battlefield V and Anthem at either 1080p or 1440p resolution.
It is also said to be the thinnest and lightest among similarly specked devices with it being 19.95 mm thin and 2.2 kg light. It also has an RGB keyboard powered by Corsair iCue and USB-C Thunderbolt 3 support.
The P119,995 device also comes with 16GB RAM, 1TB+256 GB SSD memory and a 15.6-inches FHD IPS 144Hz panel size.

Cebu Pacific to mount flights from Manila to Marinduque in April

CEBU PACIFIC announced on Wednesday it will start flights between Manila and Marinduque next month through its subsidiary Cebgo.
In a statement, the budget carrier said the Manila-Marinduque route will commence on Apr. 1. Cebgo will use its brand-new ATR aircraft for the three flights weekly, every Monday, Wednesday and Saturday.
“It takes only about an hour to fly between Manila and Marinduque — in contrast to the eight-hour trip by ferry and land today. Regular flights will allow business to prosper and the island’s tourism sector to boom,” Cebgo President Alexander G. Lao said in the statement.
Once Marinduque operations begin, it would be the 37th domestic destination in the portfolio of Cebu Pacific.
Marinduque Rep. Lord Allan Jay Velasco said in the statement the new route is expected to spur tourism growth in the area.
“We are optimistic that with larger aircraft and regular flights, tourists will have greater access to Marinduque and harness its potential as a world-class eco-tourism destination,” he was quoted as saying. — Denise A. Valdez

Wine Made Easy: It’s time to pay attention to the other Cabernet

By Elin McCoy, Bloomberg
QUICK: when you hear a wine is Cabernet, do you automatically think cabernet sauvignon? Of course you do. It’s the world’s most widely planted red grape, noted for big, rich, power-packed wines you can swoon over and even invest in.
But I’m here to convince you to remember cabernet franc, its lighter, fresher, juicier, and more versatile relative. (In fact, cabernet franc turns out to be one of the parents of cabernet sauvignon.) Once an underdog, cabernet franc become the new insider choice for wine geeks, somms, and those who like to be up on the fashionable grape of the moment.
That’s partly because of the current craze for all things Loire Valley, where cabernet franc is the grape of wines labeled Chinon, Bourgueuil, Saumur Champigny, Anjou Rouge.
In Bordeaux and California, cab franc was mostly relegated to a blending grape, adding acidity, spark, savory herbs, and lush floral aromas to fat-bottomed merlot and cabernet sauvignon blends.
But the all-cab franc style of France’s Loire Valley is inspiring more wine makers around the world, from Argentina to Italy, to create their own lively versions. Canada even uses it for ice wine.
In 2018 the volume of direct shipments of cabernet franc in the US jumped 19%, according to the recently released Direct to Consumer Wine Shipping Report. The growth trend, it says, started in 2014.
California, naturally, is behind a new wave of cabernet franc wines. Last weekend, at Napa’s annual barrel auction Premiere, where cabernet sauvignon is always the star, eight special lots of cabernet franc were auctioned, leading off with Lot #1, “Gravity’s Rainbow” made by wine whiz Aaron Pott, who has long championed the grape.
What’s cabernet franc’s appeal? Napa’s Rob Sinskey, owner of Robert Sinskey Vineyards, likes to say that if wine were cars, cabernet franc would be a Citroen DS from the early ’60s (still a collectible that placed third in the 1999 Car of the Century poll).
Cab franc, he says, is misunderstood and quirky, yet smooth and elegant. The medium-bodied wines are different from cabernet sauvignon: loaded with charm and finesse, soft bright raspberry-ish fruit, aromas of violets and mint, less tannin, and a silky texture that can remind you of pinot noir. While some top examples sell for three digits, the majority are modestly priced. Examples from outside the Loire are fruitier and sunnier, often with softer edges.
More cab franc is definitely in your future. Because the grape ripens a week or two earlier than cabernet sauvignon, it’s ideally suited to cool climates like New York’s Finger Lakes and other places in the US such as Virginia and Michigan. Acreage in Argentina is growing, and the grape is planted in Hungary and Kazakhstan. At the same time, global warming has helped cabernet francs in the very cool Loire Valley develop more fruit and sensuality.
So what are you waiting for?
Here are 12 top examples that cost under $50.
2016 Ravines Wine Cellars Finger Lakes Cabernet Franc ($21) The owners of this boutique winery on Seneca Lake are convinced cabernet franc will become the region’s flagship red. This vintage is light and supple, with flavors of tart cherries, perfect with grilled chicken.
2015 Olivier Cousin Anjou Pur Breton ($30) A legend in the natural wine world and the Loire Valley, biodynamic producer Olivier Cousin makes a couple of cab francs. This one is a wonderfully juicy combo of ripe fruit flavors and aromas, with plenty of zing, and from a superlative vintage.
2017 Philippe Alliet Chinon ($22) Chinon is the most famous region for Loire Valley reds, and a family noted for meticulous wine making is behind this juicy, tasty entry-level example from old vines. One of their four cab francs, it’s a combination of bright fruit and a mineral edge.
2015 Broc Cellars Cabernet Franc ($27) This easy-drinking natural wine from a trendy urban winery in Berkeley has pure, bright sour cherry flavors and light floral aromas. Its lighter-style reminds me of Beaujolais. The grapes are from Happy Valley, Santa Barbara.
2016 Bodega Catena Zapata Appellation San Carlos Cabernet Franc ($25) This pioneering winery in Argentina never stops experimenting. This purply, mouth-filling, spice-and-cassis-inflected example from their appellation lineup comes from one of the cooler spots in the Uco Valley and from a cool year.
2016 Calcu Reserva Especial Cabernet Franc ($13) Made from younger vines in Chile’s Colchagua Valley, this wine is all about bright, fresh raspberry and blueberry fruit with floral and herb aromas, and it’s a very good value.
2016 Duemani Cifra Cabernet Franc ($32) Superstar wine maker Luca d’Attoma planted his property on the Tuscan coast with the grape he loves. Certified organic and biodynamic, it’s a hearty, high-personality example, with aromas of dark berries, plummy flavors, and a rich, thick texture.
2015 Raats Family Cabernet Franc ($42) In South Africa, the grape was only introduced in the 1980s. Stellenbosch wine maker Bruwer Raats has been growing it since 2000, and makes several bottlings. This one is intense and complex with spicy fruit, hints of dark chocolate, and a velvety texture.
2015 Early Mountain Cabernet Franc Shenandoah Valley ($30) Jean and Steve Case (founder of AOL) increased the acreage of cabernet franc vines after purchasing this property in 2010. This silky-textured red is their less expensive bottling and shows what a great future the grape has in Virginia’s Shenandoah Valley.
2017 Lieu Dit Cabernet Franc ($30) Founded in 2011 by two Loire lovers, this Santa Barbara County winery specializes in grapes from that region. This wonderfully pure, bright, floral wine has intense cherry-savory notes.
2015 Garage Wine Cabernet Franc San Juan de Pirque Vineyard ($37) This exciting wine made by a native Canadian comes from a high-altitude vineyard in the Maipo region of Chile. It’s dark and concentrated with plush polished fruit.
2014 Lang & Reed Cabernet Franc North Coast ($27) The founders of this Napa winery aimed to make charming wines from this grape more than 20 years ago. They’ve succeeded big time. This vintage has violet and herb scents and stylish berry and lavender flavors, with a kick of acidity.

Yields on term deposits decline as demand rebounds after RTBs

By Melissa Luz T. Lopez, Senior Reporter
YIELDS ON term deposits fell across the board this week, supported by stronger demand as banks appear to remain awash with cash.
Bids for the term deposit facility (TDF) soared to P95.029 billion yesterday, soaring from the P69.995 billion in offers received a week ago and nearly double the P50 billion which the Bangko Sentral ng Pilipinas (BSP) looked to sell.
The recovery in demand came the week after the Bureau of the Treasury rolled out its public offering of five-year retail bonds, which shored up P173 billion as of March 1.
Liquidity returned to the TDF on Wednesday, which in turn had banks asking for lower returns amid abundant supply.
The seven-day tenor saw tenders rise to P42.285 billion, improving from the P36.759 billion received last week and logging more than double the P20 billion which the central bank wanted to offer.
To compete with the overwhelming demand, banks pared down the returns they wanted to average 5.0342%, coming from a range of 4.88-5.1% from 5.1027% last week.
The same trend was observed for the 14-day papers, with demand soaring to P33.516 billion from P21.874 billion to also beat the P20-billion auction volume. As a result, yields also dipped to a 5.1452% average from 5.1661% a week ago.
The 28-day instruments also received stronger appetite, with the P10-billion offering met by bids worth P19.228 billion. This rose from the P11.362 billion tenders during the Feb. 27 exercise. Yields also slipped to 5.1758% from 5.2017% previously.
The TDF has been the central bank’s primary tool to shore up excess cash in the financial system.
Through the weekly auctions, the BSP wants to bring market and interbank rates closer to their desired range through the yields which they accept.
Banks had been betting more placements under the TDF since the Monetary Board voted to keep interest rates at the 4.25-5.25% range during the Feb. 7 meeting, which in turn sets the benchmark for term deposit rates.
BSP Deputy Governor Diwa C. Guinigundo has said that recent auction results show the market is not tight, as the TDF continues to receive ample bids even with an ongoing retail Treasury bond offering.
“This situation continues to suggest that the system remains liquid, that banks have increasing surplus funds they can place with the BSP’s facilities, including the TDF,” Mr. Guinigundo said via text message.
Some market players have been calling for fresh cuts in the 18% bank reserve requirement, but the central bank official said they need to see real tightness in liquidity before they do so.

Grab raises $1.5B from SoftBank fund

LEADING Southeast Asian ride-hailing provider Grab raised about $1.5 billion from SoftBank Group Corp.’s Vision Fund, bankrolling its effort to expand into new services across the region.
The funding brings to about $4.5 billion the amount of money the company has collected from investors in the past year, it said. SoftBank is already a major backer of the Singapore-based start-up, and the latest investment will boost its stake.
Grab founder Anthony Tan is battling Go-Jek for leadership in the Southeast Asian market after vanquishing Uber Technologies, Inc. in the region last year. Mr. Tan is holding a press conference today in Indonesia, its rival’s home turf, and plans to spend a significant portion of the latest proceeds in the country.
Go-Jek has presented the thorniest challenge, with the Jakarta-based startup marching into Grab’s home market of Singapore as well as Vietnam and Thailand. Go-Jek, led by Mr. Tan’s Harvard Business School classmate Nadiem Makarim, is also raising additional capital to compete for customers and drivers.
Southeast Asia’s two most valuable start-ups are aiming to expand swiftly in everything from mobile payments to food delivery. Go-Jek raised over $1 billion in its ongoing funding round from a clutch of internet giants including Google, JD.com Inc. and Tencent Holdings Ltd., Bloomberg reported last month. Both companies are using the proceeds to shore up their positions in Indonesia and expand around the region, while merging payments with ride-sharing and food delivery to create so-called super apps.
“It is an incredibly dynamic market where the consumer class is rapidly digitizing. And within this digitization, we see tremendous opportunities to continue growing our super-app platform,” President Ming Maa told Bloomberg Television. “We are already profitable in some of our most mature business segments and in our more mature markets.”
Southeast Asia’s best-funded technology start-ups are raking in billions of dollars of investments. The region’s internet firms raised $9.1 billion from venture capitalists, private equity firms and corporate investors in the first half of last year, headed for an all-time record, a report from Google and Temasek Holdings Pte. shows. The industry raised $9.4 billion in all of 2017, according to the November research.
The region’s ride-hailing market is expected to reach $28 billion by 2025 from an estimated $7.7 billion last year, the report shows, underscoring the ambition of Go-Jek and Grab to become Southeast Asia’s super apps. On Wednesday, Maa said his start-up had no plans for an IPO at this point but was monitoring the impending debuts of Uber and Lyft, Inc. — Bloomberg

1...9,6369,6379,638...12,605Page 9,637 of 12,605
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube