Maniolas

David Tan, the founding president of the Philippine Independent Power Producers Association (PIPPA), is blaming the Manila Electric Company (Meralco) for the electricity mess, saying that the real story behind the electricity price shock is Meralco’s “failure to properly manage its contracted generating companies to bring least cost power to its consumers.” According to Tan, Meralco was forced during the Malampaya shutdown to source more of its power requirements from WESM amid the then price volality because it had failed to source or enter into supply contracts with such available facilities as San Miguel’s 345 MW plant in San Roque, GN Power’s 600 MW coal plant in Mariveles, and CBK Power Co.’s pump hydro in Laguna. What Tan is not saying is that various factors have prevented Meralco from tapping these power facilities during the abnormal supply situation. CBK cannot sell to Meralco because as a frequency-regulating power plant, it sells all its electricity to the Power Sector Assets and Liabilities Management Corp. (PSALM) and the National Grid Corp. of the Philippines (NGCP). Meralco had approached GN Power but it had already sold all of its capacity elsewhere. San Roque did not entertain this distribution utility (DU)’s offer to buy power. Thus, it was inappropriate and incorrect for Tan to deduce from the facts that Meralco never had any intention of signing up these gencos as a way to reduce its dependence on WESM at that time of runaway prices. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 These, Read More …

MANILA, Philippines – Cosco Capital Inc., the investment vehicle of retail tycoon Lucio Co, has completed its debut in the debt capital market, raising P5 billion to support acquisitions. The company said Friday it signed a P5-billion notes facility with a group of institutional lenders composed of banks and insurance companies. “The facility, which consists of seven- and 10-year notes, will be used to fund strategic acquisitions and for general corporate purposes,” Cosco Capital said. “This notes issuance is indeed a clear confirmation of the financial community’s trust and confidence in Cosco Capital,” said company president Leonardo Dayao, adding that the offering was 2.5 times oversubscribed. Metrobank Group’s First Metro Investment Corp. acted as the sole arranger and book runner for the issue, which marked Cosco Capital’s maiden offering in the debt capital markets following the consolidation of the Co family’s assets in 2013. Dayao earlier said the company in on the lookout for opportunities in food and real estate leasing for retail. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Cosco Capital is into supermarkets (Puregold Price Club Inc.), liquor importation (Premier Wine & Spirits Inc.), commercial real estate and oil storage and oil exploration activities. It is the country’s leading importer of liquor with exclusive distribution rights for some of the world’s top brands like Cuervo, Jim Beam, Fundador, Absolut Vodka, Johnny Walker, Chivas Regal and Alfonso. Pro-forma net income of the investment firm hit P5.3 billion last year, up 83 percent from P2.9 billion a year Read More …

MANILA, Philippines – An improvement in win rate significantly boosted the first quarter earnings of Travellers International Hotel Group Inc., the owner and operator of the Resorts World Manila casino complex. In a statement, Travellers Group said it breached the P1-billion income mark in the first quarter at P1.7 billion, up 72 percent from P995.4 million a year ago. “Gaming revenues contributed P7.2 billion of gross revenues, with hotel, food and beverage, and other revenues at P791.1 million,” Travellers Group said. Gross gaming revenue rose 24.3 percent from the fourth quarter of 2013, “a result of the win rate improving in the first quarter compared to the last two quarters of 2013,” Travellers Group said. Win rate, one of the top operating metrics in casino operations, determines gaming revenues. Drops volume, the amount of chips bought, grew for all segments in the first quarter, save for the VIP sector due to timing differences in overseas promotional events, the company explained. Business ( Article MRec ), pagematch: 1, sectionmatch: 1

As I discussed last time, money has a price, and this price is called interest. When you borrow money from a bank, a micro-financing institution or an informal money lender, you have to pay interest. However, interest rates and interest computations vary. It is thus important for any borrower to gain an understanding of the mechanics of interest. First of all, interest rates vary. Interest rates (for loans) can go from as low as 4% per year, to as high as 200% or even more, if you borrow from loan sharks. For instance, some informal money lenders lend a person Php10,000 on Sunday, and collect Php2,000 every day after from Monday until Saturday. The loan is then renewed the following Sunday. The minimum implied interest rate of this arrangement is 20% per week. Interest rates vary depending on the nature of the loan, the length of time involved to repay the loan, the risk involved, the amount, the co-maker, the policy of the institution or person, and if any collateral is involved. It is often best to clearly delineate between needs and wants, and avoid spending beyond your means to minimize the chances of unwanted debt. Moreover, financial planning is needed to allow you to be able to apply for cheaper loans from expected expenses, such as tuition payments. In corporate finance, interest is computed based on an interest or coupon rate (in the case of bonds) and is paid at agreed-upon dates, usually on a quarterly or semiannual basis. Read More …

According to (Delfin) Lee and his lawyers, contrary to what Pag-IBIG has been saying, GA nor Lee never absconded with P6.5 billion in HDMF money. It was money paid indirectly by HDMF to GA by way of housing loans to homebuyers in Xevera 2. They added that there is not a single demand letter from HDMF to GA for that amount, nor a civil case for collection. It is the property buyers, not GA, who are indebted to HDMF. They also claim that there was no special treatment given to GA. In fact, under their agreement, compared to the usual two years required from other developers, GA was required to buy back from HDMF the buyer’s contract to sell on a much longer period of coverage of five years. This means that in case of the buyer’s failure to pay their amortization, Globe Asiatique is obligated to either pay or update the account of the delinquent borrower or replace the latter with another buyer. As to claims that there was double sale, GA clarified that under the GA-HDMF agreement, the contracts to sell of buyers who defaulted for three months would be cancelled, and their units offered to replacement buyers. Given some defaults, GA opted to look for new buyers for these units. These units include those held by the 28 buyers who complained that they were duped into buying units that were already sold to others. Titles to these units could not be released to the new buyers since Read More …