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Refreshed BR-V bulks up on features

Text and photos by Kap Maceda Aguila

NUMEROUS CHANGES mark the mid-cycle refresh of Honda’s compact crossover, the BR-V. Formally launched last week, the updated vehicle was conceptualized by its designers with an “enhanced SUV image” touting a “masculine and premium look with its sleeker design and advanced features.”

This launch helps to highlight a promising year thus far for the Japanese car maker. In a speech, HCPI President and General Manager Noriyuki Takakura revealed that the company was able to post sales growth despite “challenges since 2018” due to “factors such as excise tax, unfavorable foreign currency and inflation.” From January to May this year, HCPI moved 8,660 units — 5,030 vehicles in the passenger car segment and 3,630 units classified as commercial vehicles.

The all-new Honda Brio, launched just last April 23, performed exceedingly well with 610 units already sold. “This translated to a 1,257% increase versus its predecessor year on year. Thank you very much for your contribution to this success,” underscored Mr. Takakura.

Meanwhile, the Honda BR-V, first unveiled locally at the 6th Philippine International Motor Show (PIMS) in 2016, has already sold more than 14,500 units — earning some industry awards along the way such as the 2017 People’s Choice Award for the Subcompact SUV of the Year and 2017 Best Compact Crossover (Two-Wheel Drive).

“Indeed, the BR-V (has) had good reception in the Philippine market (since) it became the first affordable seven-seater SUV and… Honda’s second best-selling model,” continued the executive. Significantly, the vehicle has been produced in the country since last year. “This also means the BR-V will always be available to our customers with no waiting time.”

EXTERIOR CHANGES
Honda designers went for increasing the perceived heft in the BR-V’s exterior through a new chrome front grille paired with a redesigned front bumper, with the rear bumper also being reworked. LED daytime running lights are available for the 1.5 V CVT variant, complementing the standard halogen and fog lights on it and the 1.5 S CVT.

The BR-V also receives newly designed 16-inch alloy wheels and power folding door mirrors with integrated side turn signals. Both variants still get a roof rail, while the 1.5 V CVT is fitted with a shark fin antenna.

INTERIOR REWORKS
At the heart of the infotainment system of the 1.5 S CVT is a seven-inch capacitive touchscreen display, with the 1.5 V CVT getting Apple CarPlay and Android Auto on top of that. A reverse camera is now standard on the two variants.

A new leather interior distinguishes the higher-spec 1.5 V CVT, accentuated with red portions on the door panel armrest, and red stickers on the steering wheel and shift knob. A Dark Steel theme rounds out the changes within.

SAME ENGINE
A 1.5-liter i-VTEC engine delivering 120ps at 6,600rpm and 145Nm 4,600rpm still powers both variants. Mated to Honda’s Earth Dreams Technology continuously variable transmission (CVT), the engine “delivers a smooth, refined, and fuel-efficient driving performance,” according to an HCPI release.

The 1.5 V CVT variant comes with smart entry and push start system, and additionally boasts paddle shifters for easier shifts. Honda’s Eco Assist System, which consists of the Econ mode and Eco-Coaching Ambient Light, is also available to encourage conscientious, efficient driving.

SAFETY SUITE
The BR-V boasts Honda’s G-force Control (G-Con) collision safety body that “dissipates G-forces in the event of a crash, and disperses it away from the vehicle’s occupants on impact.” Common to both variants are driver and front passenger SRS air bags, anti-lock brakes with electronic brake force distribution (EBD), hill start assist, vehicle stability assist (VSA) that restricts sideway skidding during cornering, and speed-sensing auto door lock that activates when the vehicle accelerates. Child seats can be latched on to Isofix anchors. Honda reports that the BR-V received a 5-Star ASEAN NCAP rating in the Adult Occupancy Protection (AOP) category.

The new Honda BR-V is available starting today at all 38 Honda dealerships nationwide. It comes in six colors: Platinum White Pearl (1.5 V CVT only), a new color available for an additional P20,000; Passion Red Pearl (1.5 V CVT only), also a new color; Taffeta White (1.5 S CVT only); Lunar Silver Metallic; Modern Steel Metallic; and Premium Amber Metallic (now also available for 1.5 S CVT).

The 1.5 V CVT variant is priced at P1.155 million; the 1.5 S CVT goes for P1.035 million. For more information, visit any authorized Honda Car dealership today or the official Web site www.hondaphil.com.

Grab, Citi tie up for co-branded credit card

By Manny N. de los Reyes

IN A press conference held last week at Greensun in Makati City, Grab, Southeast Asia’s leading app, and Citi, the largest pan-regional credit card issuer, have teamed up to offer a co-branded Citi Grab credit card that promises users of a life in the fast lane with exclusive offers and rewarding features.

The co-brand card, an extension of the deepening partnership between Citi and Grab, is first introduced in the Philippines, and will soon be available in other Southeast Asian territories with Thailand following the Philippine launch in the second half of the year.

“Citi has been a long-term partner since 2016 and there is great synergy between both Citi and Grab. The Citi Grab credit card is a natural next step as we create more value for our users. With the Citi Grab credit card, cardholders will be introduced to a whole new level of access, value, and convenience. This will bring us one step further in realizing our vision of becoming the leading everyday super app in SEA,” said Huey Tyng Ooi, managing director of GrabPay Singapore, Malaysia, and the Philippines.

“We are delighted that the Philippines will be the first market to launch the Citi Grab co-brand credit card. We are excited to work with Grab to offer the best value proposition to Grab’s all-digital consumer base,” said Manoj Varma, Consumer Bank head, Citi Philippines.

Citi Grab cardholders can enjoy:

• 10x points earning on all Grab spend — from getting a ride to getting deliveries.

• Platinum Tier upgrade for the first 6 months giving cardholders priority booking benefits and dedicated customer support.

• 3x points on dining, entertainment and online subscriptions, while all other spend will earn 1 point for every P30 spend.

• 12 free Grab rides upon sign up equivalent to P2,500 worth of GrabPay Credits upon spending the first P10,000 within 60 days of using the card. Cardholders can also get free Grab vouchers worth P2,000 when they use the card to top up their GrabPay Wallet with at least P1,000. Membership fees for principal and supplementary cards are also waived for the first year.

• Greater convenience by going cashless, when using Citi points to pay for Grab services.

The co-brand card partnership expands an ongoing collaboration between Citi’s Consumer Banking business and Grab that dates back to 2016. Citi has participated in Grab’s financing round through Citi Ventures, the bank’s venture capitalist arm.

In 2016, Citi and Grab announced their first partnership across six markets in Southeast Asia. In what is a regional-first, the partnership enabled Citi cardholders to use their earned points and miles to pay for rides on the Grab platform.

Since then, the partners have systematically widened the scope of their cooperation to include all of Grab’s services. This includes incentives for topping up the GrabPay wallet, to gifts and cash back benefits for spending on Grab services.

The new Citi Grab co-brand credit card allows both companies to leverage each other’s strengths. Grab will be able to offer its users credit card benefits and rewards, and extend its offering to Citi’s affluent cardholder base in the region. Citi will be able to scale its business through Grab’s unique mobile-first user base.

Grab’s partnership with Citi is a reflection of the everyday super app’s commitment to continue on improving its services to bring greater convenience to its users.

“We believe that the way moving forward is to harness the benefits of the digital economy, and as such, Grab will always put prime importance to innovations in the spaces that it operates — be it transport, food delivery, parcel services, or payments. Partnering with the best companies in the region like Citi allows Grab, as an everyday super app, to offer more reliable, convenient, and rewarding services to its users,” Grab Philippines President Brian Cu said.

Coconut products maker plans to raise nearly P8B from IPO

A COCONUT products manufacturer is looking to raise up to P7.7 billion via an initial public offering (IPO) in October.

In a statement, Axelum Resources Corp. said it has filed an application for an IPO with the Securities & Exchange Commission (SEC) and Philippine Stock Exchange (PSE). The company did not say when the application was filed.

Romeo I. Chan, chairman of Axelum, said the company is planning to sell up to 700 million primary shares and up to 430 million secondary shares.

“We hope to raise up to P7.7 billion at a price of up to P6.81 per share. The final offer price shall be determined prior to the scheduled listing of the IPO hopefully in October of this year,” Mr. Chan was quoted as saying.

If approved, Axelum’s IPO could be one of the first to push through this year. The last company to go public at the local bourse was property developer D.M. Wenceslao & Associates Inc. in June 2018.

Axelum appointed First Metro Investment Corp. (FMIC), the investment banking arm of the Metrobank Group, as issue manager, bookrunner and lead underwriter of the IPO.

Henry J. Raperoga, president of Axelum, said the company is planning to use the proceeds to ramp up its expansion.

“The net proceeds from the primary offer will be used to fund our strategic acquisitions, expand our domestic and international distribution networks, install new manufacturing facilities for new products, and improve and expand the company’s existing manufacturing facilities. A portion of the proceeds will also be utilized to retire our loans, reduce payables, and for other capital expenditure requirements,” Mr. Raperoga said.

Asked whether there would be an appetite for the IPO, Timson Securities, Inc. Trader Jervin S. de Celis said, “Well, if the company’s plan is to use the proceeds of the IPO for business expansion then it can attract investors. Since the company is also export-oriented and sells their wide array of coconut products to international market, that makes it a factor to consider among investors who would like to diversify their portfolios.”

Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said it would be better for the company to have the IPO after the US-China trade tensions have subsidied.

“Once the trade war between the US and China is resolved… I think the IPO for this, since it’s a consumer industry, will have a good start as long as it’s on the proper timing… siguro mga (maybe around) fourth quarter pa ’yan,” he said in a phone interview.

Axelum is described as a fully integrated manufacturer of coconut products such as coconut water, desiccated coconut, coconut milk powder, and coconut cream for both domestic and international use.

Its main production facility is located in Medina, Misamis Oriental, while two manufacturing and distribution facilities are in the United States and Australia.

The company supplies its products to international food and beverage companies, confectioneries, bakeries, supermarkets, and food service industry in United States, Canada, Australia, New Zealand, Eastern Europe, Europe, Middle East, Japan, and parts of Asia.

Axelum said its direct or indirect customer-base and end-users include global brands such as Vita Coco, The Hershey Co., ConAgra Foods, Kellogg’s, Quaker, Nestlé, Russell Stover, Unilever, Kroger, Mondelez International, Ferrero, Kraft Foods, General Mills, Campbell’s, Mars, Cadbury Schweppes, and Calbee.

It also has retail products such as Fiesta Coconut Milk Powder and Fiesta Tropicale Coconut Water. — Vincent Mariel P. Galang

Despite the rainy weather:The march goes on

IT WAS a cloudy morning when the crowd began to gather at the Marikina Sports Center on Saturday, June 29. The line of attendees coming in stretched around the entire perimeter of the venue from the main gate. Unlike the weather, guests were dressed in eye-catching bright outfits — the colors of the rainbow.

Despite the periodic heavy rain and even heavier traffic, members of the LGBTQI+ community, straight allies, and participating organizations gathered at the 2019 Metro Manila Pride march for love and equality, for friends and family, and for those who can’t march.

According to the event’s Pride Guide brochure, this year’s theme “#ResistTogether” means that Pride is rooted in protest and “not merely a celebration of our community — it is a protest against the status quo.”

Organizers later said that the event attracted some 70,000 participants, a considerable increase from past year’s figure of 25,000.

During the solidarity speeches, Marikina City Mayor Marcelino R. Teodoro stressed that everyone is welcome and respected in the city.

“Welcome to Marikina City. This is our home where each individual is respected and valued as a person. [In here], there is no room for violence nor discrimination,” Mr. Teodoro said. “It is destiny today that we are all gathered here with one plight: that our voices be heard for equal inclusive human rights.”

In support of the community, Mr. Teodoro signed the Marikina Anti-Discrimination Ordinance protecting the LGBTQI+ community against Sexual Orientation and Gender Identity and Expression (SOGIE)-based discrimination. The implementation of the ordinance gives equal opportunities in employment, education, and government services to everyone.

“Let us continue the fight not only for today. Carry on this fight and never waver… Do not be afraid in sharing your stories. Be visible, be out, and be proud,” Mr. Teodoro said.

Later that day, the crowd cheered “Happy Pride!” as the march pushed through — later than scheduled — at 5:30 p.m. from the sports center’s main gate to Sumulong Highway and ending at Toyota Ave.

In the evening, the celebration continued with performances by artists including Ja Quintana, Juan Miguel Severo, and DJ sets by Katie Kace of EuroPride Vienna 2019 and Deej Diaz. — Michelle Anne P. Soliman

TMP hosts Asia-Pacific region production meet

TOYOTA MOTOR Philippines Corporation (TMP) recently hosted the 11th Asia Pacific Production Self-Reliance Meeting, which aims to strengthen capabilities of Toyota’s manufacturing plants in the region.

During the two-day summit, participating companies reported on their progress towards achieving jiritsuka or self-reliance in their respective production operations. Several genba or actual shop visits were also held, allowing opportunities for mutual sharing of good practices.

Being a first-time host, TMP showcased significant efforts related to safety, quality assurance, new technologies, carbon dioxide emission reduction, cost management and process efficiency.

Twelve Toyota affiliates from nine countries participated in the activities, which included high-level manufacturing officers from Toyota Motor Corporation (Japan) and Toyota Daihatsu Engineering and Manufacturing Co., Ltd. (Thailand).

Three-year bonds to fetch lower rates on strong market demand

THE RATE of the three-year Treasury bonds (T-bond) on offer tomorrow will likely decline amid persistent strong demand for short-term securities.

The Bureau of the Treasury (BTr) is offering on Tuesday P20-billion worth of fresh three-year bonds.

Kevin S. Palma, Robinsons Bank Corp. peso debt trader, expects the three-year bonds to fetch a coupon rate of 4.875%.

“(The average) rate of the three-year paper for issuance will be lower versus the last time the same tenor was auctioned in August 2018,” Mr. Palma said in a mobile phone message.

On Aug. 29, the Treasury made a full award of the reissued three-year bonds. Carrying a coupon rate of 4.25%, the debt papers fetched an average rate of 5.136%, 43.3 basis points higher from the 4.703% recorded in the previous bond auction.

At the secondary market on Friday, the three-year debt notes were quoted at 4.959%, based on the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System’s website.

“The government will likely get a healthy demand for the three-year offering as the said tenor has always been a sweet spot for investors given its modest return with a relatively short tenor,” Mr. Palma said.

He added that demand for the auction will be driven by some additional liquidity after the second phase of reserve requirement ratio (RRR) cut took effect last June 28.

After a 100-basis-point (bp) RRR cut across all banks last May 31, the Bangko Sentral ng Pilipinas trimmed the reserve ratios of universal and commercial lenders and thrift banks by another 50 bps last Friday to 16.5% and 6.5%, respectively.

“The increased liquidity from the RRR cut will be additional demand for the short tenor,” another trader said in a phone interview.

The trader added that the rate of the three-year bonds on offer tomorrow will likely settle between 4.875% and 5% as strong demand is seen to persist amid reduced auction volumes for short-term papers this quarter.

The government plans to borrow P230 billion from the domestic market from July to September, broken down into P60 billion in Treasury bills and P140 billion worth of T-bonds.

The programmed amount for this quarter is smaller than the P315 billion planned in April-June as well as the P300 billion placed on the auction block in last year’s third quarter.

The government is looking to raise P1.189 trillion this year from local and foreign sources to fund its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product. Of the amount, 75% will be sourced domestically while the balance will be from foreign creditors. — Karl Angelo N. Vidal

Megaworld targets P4-B sales from new tower

MEGAWORLD Corp. expects to generate P4 billion in sales from its newest residential tower in its McKinley Hill township in Taguig.

The listed property development said in a statement that it has launched St. Mark Residences, a 23-storey tower that will be among the last residential properties to be launched in the township.

The project will offer 235 units, with the studio layout sized up to 41 square meters (sq.m.); one-bedroom units go up to 66 sq.m.; two-bedroom up to 163 sq.m.; while three-bedrooms are up to 120 sq.m. Each unit will have its own balcony.

“Living in McKinley Hill allows walkable access to the mall and close proximity to and from C5 and the South Luzon Expressway, as well as the Makati central business district via McKinley Road,” Megaworld Senior Vice-President Noli D. Hernandez said in a statement, noting how the tower will be directly connected to Megaworld’s Venice Grand Canal Mall.

Amenities located on the third-level podium will include a clubhouse pavilion, swimming pool, children’s playground, fitness station, mini-theatre, function halls, library, gym with sauna, massage area, badminton courts, and a tennis court.

The property will also feature landscaped gardens such as a meditation garden, sculpture garden, and rock garden.

For additional security, Megaworld will install full radio frequency identification (RFID), access for each unit as well as the elevators.

Megaworld is scheduled to complete the project by 2021.

The tower will rise within McKinley Hill, Megaworld’s 50-hectare township in Fort Bonifacio. It is already home to several residential towers, office towers, schools, foreign embassies, and the McKinley Hill Football Stadium.

Megaworld said about 100,000 workers are employed inside McKinley Hill’s office towers, most of which cater to the information technology and business process outsourcing sectors. Meanwhile, around 15,000 people reside within the estate.

The company currently has 24 townships across the country, which it hopes to bring to 30 by 2020. It is spending P65 billion in capital expenditures for this year to support its expansion.

Bullish on the Philippine economy’s growth, Megaworld has also committed to spend P300 billion from 2020 to 2024 to continue developing residential, office, retail, and hotel projects. Of this, about 65% will be used for residential projects and investment properties. The remaining 35% will be used for land acquisitions.

So far, Megaworld already has 4,700 hectares under its portfolio. It will add another 2,000 hectares by next year.

The company’s net income attributable to the parent climbed 16% to P3.8 billion in the first quarter of 2019, afer a 15% increase in consolidated revenues to P14.9 billion.

Megaworld is the property arm of tycoon Andrew L. Tan’s holding firm, Alliance Global Group, Inc., which also has core investments in gaming, liquor, quick-service restaurants, and infrastructure. — Arra B. Francia

‘God loves me for who I am’ — a journey from Sunday school teacher to Manila Pride

“If a man lies with a male as with a woman, both of them have committed an abomination; they shall surely be put to death; their blood is upon them.” (Leviticus 20:13)

THIS Bible verse has been used for centuries by Christians to discredit same-sex love, leading LGBTQ+ individuals to be excluded from their communities. It rings like a gong, to tell them that what they’re doing is wrong. The people who bring up the specific Bible verse though, forget that that same chapter forbids round haircuts, tattoos, blended fabrics, and shellfish.

If there’s anybody out there who knows the Bible, it’s Abby Orbeta. Ms. Orbeta works as a senior copywriter for an advertising agency, performs spoken-word poetry, and serves as Co-Head for Arts, Culture and Expression for Metro Manila Pride. In another world, she was once a Sunday School teacher and a church youth leader. She also identifies as queer.

“I grew up in a very devout evangelical Christian home,” Ms. Orbeta told BusinessWorld at the tennis courts of the Marikina Sports Center on the sidelines of the Metro Manila Pride March on June 29. She told BusinessWorld that she once identified as straight, then as a lesbian, then as a bisexual. “Now, I am queer and open to all. I’m just out,” she said with a bit of laughter.

Her parents, meanwhile, identified deeply with the church: her father worked his way up from a servant of the church to a leader for small groups, and then became a preacher. Her mother, meanwhile, serves as a head of an intercessors’ prayer group.

In her very Christian surroundings, Ms. Orbeta found herself attracted to a neighbor before she turned 10. “There was this very beautiful, very butch woman in our village.” She thought that she was just attracted to the woman’s masculine energy, but she soon found herself attracted to a feminine girl in school as well. “Why do I feel that same attraction that I have for men and even masculine women towards a feminine woman?” she asked herself.

“That was when I first knew that there was something different with me,” said Ms. Orbeta. “This was not something that’s right — according to what I was taught.” She said that she suppressed her attraction to females by actively pursuing men, all in an effort to reconcile her faith and her feelings. “I’ve struggled with it since forever.”

Eventually, her truth came out — and not to the pleasure of everyone. “My parents were horrified,” she said. Rumors in church about her attraction to the same sex had been spreading for a while, and her mother went through Ms. Orbeta mobile phone for proof. Ms. Orbeta said that there was a “mega-confrontation.”

“It put into question my position in the church,” she said. “I wasn’t really trying to hide it, but I wasn’t very out about it either. I knew the world I was living in.”

Eventually, Ms. Orbeta had to give up the community she found in church. She says that she has since stopped going to that church, but still attends on special occasions, at the request of her mother.

What she has found instead was her community in Pride, which she found through her spoken-word performances, which enabled her to connect with other queer people. “Without it, I probably wouldn’t be alive,” she said. “I still have faith in Christ; that’s still there.

“This is why I keep volunteering, and keep moving forward: so that people that have the same experiences as me don’t have to feel the same way.”

The Metro Manila Pride March last Saturday attracted over 70,000 people, according to a count by the Metro Manila Pride organization. Included among these were Christian groups who held up signs that said: “I’m sorry for using the Bible to hurt you” and “God loves you, and so do we.”

“Now, there are so many people embracing us with open arms, telling us that who we are is valid, and that we are loved, and we are seen,” Ms. Orbeta said. “That’s all I want to happen; that’s all I want to feel… that’s there’s nothing wrong with us.”

The Bible says in 1 John 4:7-8: “Beloved, let us love one another, because love is from God; everyone who loves is born of God and knows God.”

Ms. Orbeta said, “I believe that God loves me for who I am. He made me who I am. I spent so many years on my knees to try to pray the gay away. But God never really made it go away.” — Joseph L. Garcia

San Isidro aiming to become Davao del Norte’s cacao capital

THE SMALL landlocked municipality of San Isidro, with a population of under 27,000 as of the 2015 census, wants to become the cacao capital of Davao del Norte province.

The cacao industry in the town got together last month through a forum organized by the Peace and Equity Foundation (PEF) to discuss how to achieve that goal.

“This is a welcome development for us because San Isidro is a fourth-class municipality. We need the support from other stakeholders to deal with the limitations,” Municipal Administrator Allan Delideli was quoted in a statement released by PEF.

Apart from local government officials, representatives from the business sector, community leaders, farmers, and PEF trustees and program committee members attended the gathering.

PEF Executive Director Roberto R. Calingo said the forum served as an opportunity to strengthen partnerships and cooperation to build up “the cacao commodity.”

San Isidro has a total land area of 15,249 hectares with 3,600 hectares planted to cacao.

PEF said aside from developing the cacao industry, also discussed during the forum were strategies to cope with falling copra prices, including intercropping cacao with coconuts, improving farming practices, value-adding, and improving the quality of nuts.

The forum was part of a two-day visit by PEF’s board and program committee members to look into the foundation’s efforts to help the town move up in the agricultural value chain.

The group visited model and demo cacao and coconut farms, as well as local enterprises of the Laak Multipurpose Cooperative and Chokolate de San Isidro, Inc. — Marifi S. Jara

Isuzu turns over modern PUVs to Boracay transport cooperative

By Manny N. de los Reyes

RESIDENTS and tourists of Boracay Island will not only get to enjoy one of the world’s best beaches, they will now also get to travel around this tropical paradise in utmost comfort, convenience, and safety on board the Isuzu modern public utility vehicles (PUVs).

Isuzu Philippines Corporation (IPC), the country’s leading manufacturer and distributor of commercial vehicles and trucks, turned over recently the initial two units of its modernized PUV to the Boracay Land Transport Multi-Purpose Cooperative (BLTMPC) at the cooperatives’ main terminal in Boracay Island. These two units form part of the total 15-vehicle fleet that BLTMPC has acquired from IPC.

These modernized PUVs will ply the main circumferential road that goes around the interior of the island, picking up and dropping off passengers at designated stops.

Joseph Bautista, IPC Sales Division head, described the turnover as happening at just the right time. “In the past few months, we have seen the earnest rehabilitation of Boracay Island; from its beaches toward the road network and infrastructure. And now that the island has just recently been reopened to the public, we are very happy to have been a strategic part of this rehabilitation. With a cleaner, more organized Boracay, you will now also see Isuzu modernized PUVs servicing the island’s residents and tourists.”

He added that Isuzu’s modern PUVs have also been designed and built in accordance to the objective of the Boracay rehabilitation efforts to make the island environmentally sustainable.

“The modernized PUVs are assembled using the Isuzu QKR77 platform which has been modified for PUV use. These are powered by the 3.0-liter 4JH1-TC CRDI diesel engine that delivers 106 Ps of power with better fuel economy. The engine is also rated Euro IV compliant, so it produces cleaner emissions,” Mr. Bautista explained.

Yasuhiko Oyama, IPC vice-president for Sales, also lauded the Filipino mark of excellence in the construction and design of Isuzu’s modern PUV: “The Isuzu QKR PUV is truly a vehicle for Filipinos made by Filipinos. As they say in the native language, “Gawang Pilipino, para sa Pilipino.”

The Isuzu modern PUV’s body has been designed and built by all-Filipino body builder and long-time partner of IPC, Almazora Motors Corporation. This Isuzu modern PUV can accommodate up to 30 passengers (seated and standing). The fully air-conditioned cabin by Coolaire means that all passengers can travel comfortably even during the hottest summers, with enough legroom, headroom, and seat space in a Class 2 PUV.

The modern PUVs are also equipped with accessories as required by the Land Transportation Franchising and Regulatory Board (LTFRB), such as CCTVs and dashcam, GPS tracking system, and automated electronic fare collection system. The automatic doors also face the sidewalk for safe and convenient entry and exit of passengers.

Mr. Oyama thanked BLTMPC for choosing Isuzu. “We thank the cooperative for trusting us in providing them their first fleet of modern PUVs. Undoubtedly, Isuzu has already created a name for Filipino drivers and operators as their reliable partner. We are very proud to say that Isuzu has not only achieved another milestone but has also continued its legacy by having these Isuzu PUVs to run in Boracay’s roads under the government’s PUV modernization program (PUVMP).”

He encouraged other transport cooperatives across the country to already make that switch to safer, cleaner, more convenient, and more reliable modernized PUVs. “Do check out our modernized Isuzu PUVs. Inquire about their specifications and features at any IPC dealership near you.”

US banks play cat-and-mouse game with Federal Reserve on capital returns

NEW YORK/WASHINGTON — An annual stress test of banks introduced by US regulators after the 2007-09 financial crisis to prevent taxpayer bailouts has become a fight over how quickly lenders can return capital to shareholders.

Helped by a buoyant US economy, tax cuts and record profits, the country’s biggest banks are ramping up payouts to shareholders through dividends and share buybacks. But their plans to return capital are pushing the boundaries of what regulators will tolerate, analysts and regulatory sources say.

The Federal Reserve on Thursday approved the capital plans of 18 banks in this year’s test, although it placed conditions on the US operations of Credit Suisse Group AG after identifying weaknesses in its capital planning.

JPMorgan Chase & Co., one of the best capitalized US banks, had to resubmit its proposal after the Fed assessed its initial plan would result in it falling below the minimum capital it is required to hold to cope with a downturn.

The bank eventually won the regulator’s approval for a capital plan that will increase its quarterly dividend to 90 cents per share from 80 cents, starting in the third quarter, and buy back up to $29.4 billion of shares over the next year.

The Fed began publishing the results of the capital planning check in 2012. It is the second part of the Fed’s annual test of banks, assessing what level of cash banks can return to shareholders through dividends and share buybacks.

Federal Reserve Chairman Jerome Powell has emphasized that banks are in a much stronger position now than they were before the crisis and has said he believes the amount of capital reserves in the banking system is appropriate.

With the Fed no longer pushing lenders to increase capital reserves each year, and banks growing comfortable with the stress testing process, they may be getting more aggressive with their capital plans, a senior Fed official said Thursday.

As they push to maximize shareholder payouts, banks run a greater risk of seeing their capital levels dip below regulatory minimums when run through a hypothetical economic downturn. That’s what happened to JPMorgan this time. After the bank resubmitted its plan with a lower payout rate, it was approved.

The Fed permits banks to adjust their capital plans once after submitting them to stress testing, but only if their initial plans prove to be too aggressive, giving the firms some incentive to push the limit.

“It really allows banks to push to the boundaries,” said Adam Gilbert, global regulatory leader of PwC’s financial services advisory practice. “It enables them to be strategically aggressive.”

There is little doubt that banks are becoming more headstrong. Fitch analyst Bain Rumohr said that, for this year, US banks’ payout ratios — the percentage of earnings they payout as dividends and share buy backs — have risen to over 100% of earnings, compared with 80% to 90% last year.

In essence, some banks are planning to pay out more in share buybacks and dividends than they will earn in the current year.

JPMorgan has repurchased more than $80 billion worth of stock since July 2016 and has been upping its rate of buy backs each year. Fitch estimates its projected payout ratio to be 110% if it fully executes its share buy-back plan this year.

Goldman Sachs Group Inc. and Morgan Stanley received conditional passes in the test last year, meaning they could not increase their capital distributions to shareholders.

Rumohr said he anticipates more banks could be asked to resubmit plans going forward if current market trends continue.

“We wouldn’t be surprised to see one to two banks have to resubmit during each year’s process,” he said. — Reuters

Growth prospects boost Andrew Tan-led property company’s stock

By Mark T. Amoguis
Senior Researcher

INVESTORS bought Megaworld Corp. shares last week given the company’s attractive growth prospects amid its aggressive expansion plans and its insulation from the moratorium on the economic zone development in Metro Manila that would put Information Technology and Business Process Management (IT-BPM) projects on hold.

A total of 94.574 million Megaworld shares worth P571.458 million were traded during the June 24-28 period, data from the Philippine Stock Exchange showed.

Shares in the property arm of tycoon Andrew L. Tan closed at P6.10 apiece, inching up by 0.5% from the P6.07 finish last June 21.

Megaworld’s share price has gone up by 27.1% since the start of the year.

For RCBC Securities, Inc. Equity Analyst Jeffrey Lucero, Megaworld’s attractiveness is underscored by its insulation from the moratorium on new ecozones in Metro Manila, which is seen delaying IT-BPM firms’ expansion plans.

“The moratorium on new Metro Manila ecozones was on the news [last] week. MEG (ticker symbol of Megaworld) is not negatively impacted by this news since most of the office space in their 2019 to 2020 pipeline which are not yet PEZA- (Philippine Economic Zone Authority) accredited will rise in the POGO (Philippine offshore gaming operator)-packed Bay Area,” Mr. Lucero said in an e-mail interview last Friday.

“Even if they don’t get PEZA accreditation for those, they can just lease out the space to POGOs (rather than to BPOs who usually locate in ecozones to avail of ecozone incentives). On the other hand, the moratorium would cut upcoming supply of PEZA-accredited office space, this could then benefit MEG’s existing PEZA-accredited offices. Most of MEG’s office space in Metro Manila are PEZA-accredited,” he added.

Last Tuesday, PEZA said it will ask Malacañang to provide a longer transition period of at least six months instead of 30 days for the completion of requirements of applications for ecozone developments in Metro Manila that are awaiting presidential green light.

Some 153 information technology (IT) centers and 10 IT parks are expected to be affected by the current processing period.

Of these, 22 have been endorsed to President Rodrigo R. Duterte and 131 approved by the PEZA board but not elevated to the Office of the President. PEZA approvals for Metro Manila only cover IT-related enterprises.

To recall, Administrative Order No. 18, which was issued last June 17, set a moratorium on the processing of applications for ecozones in Metro Manila. However, It did not provide guidelines for how the applications will move forward.

Applicants that fail to submit all requirements to beat the July 22 deadline will not be rejected but will be shelved temporarily, PEZA Director-General Charito B. Plaza was quoted in news reports as saying.

For his part, COL Financial Group, Inc. Senior Research Manager Richard G. Lañeda said Megaworld will continue to aggressively expand its leasable retail and office space, citing the company’s plans to complete a total of 633,000 square meters (sq.m.) of leasing space starting this year until 2021.

“We are raising our fair value estimate on MEG from P5.84 to P7.20 after raising our valuation estimate for MEG’s investment properties and landbank. We factored in recently completed office and retail buildings and also raised our EBITDA (earnings before interest, tax, depreciation, and amortization) margin assumption for investment properties. Meanwhile, we raised our landbank value estimate to better reflect the increase in market prices of land in the past two years,” Mr. Lañeda cited COL’s report on Megaworld dated June 26.

“Given that EBITDA margins have consistently held above our conservative long-term assumption, we are raising our EBITDA margin forecast to 88.3%,” he said.

Megaworld commits to spend P300 million over the next five years — or until 2024 — to expand its residential, office, retails, and hotel projects. This year alone, it planned to spend P65 billion for its expansion.

Broken down, around 65% or roughly 195 billion of the five-year capital expenditures will be earmarked for the development of residential projects and investment properties, while 35% will be used for land acquisitions.

Last year, the company posted a net income attributable to the parent of P15.219 billion, an increase of 15.8% from P13.707 billion in 2017.

In the first quarter of 2019, Megaworld managed to grow its attributable net profit by 16.3% to P3.836 billion.

COL’s Mr. Lañeda expects Megaworld to net P17.736 billion this year. He pegged its support and resistance levels for this week’s trading at P5.90 and P6.17, respectively.

Meanwhile, RCBC’s Mr. Lucero has a P16.8-billion core net income forecast for Megaworld this year on “broad-based growth.”

“[T]he residential business growth will be buoyed by sustained high amount of residential launches. Their residential inventory remains less than one year worth of sales. On the other hand, MEG expects to add at least 200,000 square meters of office and mall leasing space this year, which, coupled with assumed better occupancy for the space added last year, will allow for strong growth in rental income,” he said.

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