philstar.com – Business – Page 212

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SMC raising $4 B to fund transformation

Economy

Jul 152013

MANILA, Philippines – San Miguel Corp.’s plan to raise about $4 billion by selling power assets brings it closer to funding the Philippines’ biggest company’s expansion into industries and infrastructure. The Southeast Asian nation’s most acquisitive company plans to spend $35 billion to complete Ramon Ang’s strategy to transform SMC from a brewer and foodmaker into an investor in energy, mining, airlines and roads. San Miguel, which started making beer before the country declared independence from Spain more than 100 years ago, has made more than $5.6 billion worth of purchases since 2008, when it announced an investment in Manila Electric Co. That stake has more than tripled in value, while Ang acquired control of Petron Corp., the country’s largest refiner, and bought three of the nation’s biggest power plants. “Ang has been an opportunistic entrepreneur and he has seen better opportunities so he’s selling assets that have already paid off to fund these new ventures,” said Marvin Fausto, who oversees about $20 billion as Manila-based chief investment officer at BDO Unibank Inc. “He’s moving assets from one to the other, liquidating those where he has made money, and financing opportunities that will eventually pay off like toll roads and airlines.” Completion of Ang’s plan to sell a 32.8- percent stake in Meralco and 49 percent of SMC Global Power Holdings Corp. would bring his asset sales in the past seven years to about $10 billion, according to data compiled by Bloomberg. “If we can sell something, good,” Ang said Read More …

Petilla to seal Angat deal

Economy

Jul 142013

MANILA, Philippines – Energy Secretary Carlos Jericho Petilla hopes to seal a compromise deal with the Korean company that won the bidding for the Angat hydropower plant before the end of the year. “Hopefully by the end of the year, we can come up with a win-win solution,” Petilla said. Korea Water Resources Corp. (K-Water) is currently negotiating to bring down the $440.88-million price tag on the facility, citing the state of the facility as well as several changes the government put in the agreements signed by both parties. “What we’re looking for is a win-win solution for everybody and that includes all the players – PSALM (Power Sector Assets and Liabilities Management Corp.), DOF (Department of Finance), K-Water, MWSS (Metropolitan Waterworks and Sewerage System) and DOE (Department of Energy),” Petilla said. K-Water won the bidding that PSALM conducted in 2010 for the 218-megawatt plant, which sources its power from the Angat Dam in Bulacan. In 2010, K-Water topped the bidding that PSALM conducted for the 218-megawatt plant, which is fueled by water from the Angat dam in Bulacan. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In a recent letter to PSALM, K-Water said it wants to “achieve the same level of benefits expected” in its 2010 bid for the power plant and wants the plant’s auxiliary units four and five to be included in the takeover. The auxiliary units in question are owned by MWSS. On the back of these complex issues, K-Water wants to reduce the purchase price of the Read More …

MPTC allots P3 B for road construction

Economy

Jul 142013

MANILA, Philippines – Metro Pacific Tollways Corp. (MPTC), a unit of infrastructure conglomerate Metro Pacific Investments Corp. (MPIC), has set a P3-billion capital expenditure program for its road construction projects this year. MPTC president and CEO Ramoncito Fernandez, in an interview with The STAR on the sidelines of the 6th NLEX (North Luzon Expressway) Tara Na sa Norte Tourism and Travel Fair, said a big chunk of the budget, or P1.7 billion, would go to the Segment 9 project which involves a 2.4-kilometer stretch from Valenzuela City to MacArthur Highway. The project is expected to be completed by the middle of next year. Fernandez said these expansion projects would promote tourism, particularly in the northern part of Luzon where most of their facilities are located. MPTC unit Manila North Tollway Corp. (MNTC) operates the 84-kilometer NLEX and was recently awarded by the state-run Bases Conversion and Development Authority (BCDA) the right to operate and maintain the 94-kilometer Subic-Clark-Tarlac Expressway (SCTex) for 33 years. “Our educated guess is that tourism has been playing a good part in the traffic increase in NLEX through the years,” he said. For the first half, traffic volume at NLEX rose five percent to an average 172,000 vehicles daily compared to the same period in 2012. The five percent growth is expected to be sustained by the end of the year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Fernandez said this is significantly higher or double the historical growth of two to four percent Read More …

IMF issues warning on capital outflows

Economy

Jul 142013

MANILA, Philippines – On what seemed to be a reverse of what it warned about months back, the International Monetary Fund (IMF) now wants emerging markets, such as the Philippines, to prepare for capital outflows. “In emerging market economies, the focus should be on boosting potential growth while dealing with the capital outflows, which may follow from the exit of the US from quantitative easing (QE),” IMF chief economist Olivier Blanchard said last week. “We have to accept the fact that as monetary policy normalizes in the US…some of the investors which had gone to emerging market countries in particular will want to repatriate (back their funds),” he explained. His statements were made on a press briefing held by the IMF last Tuesday to mark the release of its World Economic Update. The transcript of the briefing was posted on the IMF website. In the past, the multilateral agency had warned against capital inflows, which had seen Asian currencies rising in value to the detriment of exports as well as concerns of asset bubble formations. This time around, Blanchard said, the already slowing growth in developing nations will come under threat once the QE, the $85-billion monthly bond buying program in the US, tapers off later this year as indicated. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Based on the IMF’s latest projections, emerging markets are projected to grow 5.4 percent this year and the next, slower than the 5.3 percent and 5.7 percent for 2013 and 2014 Read More …

LTCP goes full blast despite birth pains

Economy

Jul 142013

LTCP goes full blast despite birth pains

MANILA, Philippines – The Land Registration Authority (LRA) said its land titling computerization project (LTCP) continues to go full blast to give its target clientele the optimum security and benefits of state-of-the-art information technology at the soonest possible time. LRA deputy administrator Ronald Ortile said the installation of the LTCP system in cooperation with the agency’s private partner, the Land Registration Systems Inc. (LARES), “is 93 percent complete, with 134 RDs already live and connected to LRA central office.” Reacting to reports of delay in the release of certain documents being sought by land owners from the RDs in the provinces, Ortile noted that “the delays may be likened to birth pains since we are introducing a new and ultra-modern concept in land titling services.” Moving to a new system also involves the challenge of training existing employees, which may be a contributing factor in delays experienced by specific RDs. While staff training continues, LRA has conveyed its plan to augment manpower in different RDs to help address isolated cases of delay. But with the refurbished RD offices in place, the public can enjoy the full benefits of the LTCP that could translate into utmost convenience for land owners and other parties availing themselves of LRA’s online services made possible by the computer system. Ortile said land owners could actually save time and money by using the LRA’s A2A service. “If a client based in Quezon City wants to obtain a CTC of a land title stored in an RD located Read More …

Energy experts set fuel biz training

Economy

Jul 142013

MANILA, Philippines – Micro, small and medium enterprises (MSMEs) wanting to join the highly lucrative and stable fuel-related business sectors can now have free training at the PetroBusiness Pavilion of the Franchise Asia Philippines (FAP) 2013, which will be held at the SMX Convention Center Manila on July 19 to 21. The special seminars for SMEs will be conducted by energy experts invited by FAP 2013 organizer Philippine Franchise Association (PFA) to guide new and aspiring petro industry players in learning the tricks of the trade and steering their franchised businesses to success – from startup to managing the onstream operations. 7-Eleven president and FAP 2013 international expo chairman Victor Paterno said experts from Phoenix Petroleum Philippines, Seaoil, Total and Unioil had also been called upon to present business models and concepts during the seminars. Co-presented by BPI Family Ka-negosyo, PLDT SME Nation and Sun Cellular, the FAP 2013 will feature unlimited business opportunities in both fully established and upcoming franchise concepts for every sector and investment level industrywide. Interested participants in the petrobusiness seminars are encouraged to register early because of the limited availability of seats. For more details, call PFA (632) 6870365 to 67 and (63917) 8320732, or e-mail pfa@pfa.org.ph).

Metrobank to double capital to P100 B

General

Jul 122013

MANILA, Philippines – Metropolitan Bank & Trust Co. (Metrobank), the main banking unit of the Ty family, will double its capital to P100 billion to keep up with the global Basel 3 requirement. In a disclosure to the Philippine Stock Exchange (PSE), Metrobank said it has received approval from Bangko Sentral ng Pilipinas (BSP) to increase its authorized capital stock from P50 billion to P100 billion. The increase would be divided into four billion common shares and one billion preferred shares, each with a par value of P20 per share. “The BSP approval of the amended articles of incorporation together with the earlier approval of 30-percent stock dividend declaration shall be subject to the approval of Securities and Exchange Commission (SEC),” it said. As previously disclosed, the 30-percent stock dividend equivalent to 633.41 million common shares amounting to P12 billion shall be applied as payment of the required 25- percent subscription to the increase in authorized capital stock. Earlier, Metrobank announced its plan to issue some $500 million worth of Tier 2 capital notes to comply with the Basel 3 requirements. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Metrobank informed the PSE that the issuance of the Basel-3 compliant Tier 2 notes was approved by its board in a meeting last April. It said the planned issuance would also allow the bank to proactively manage its capital base for growth and refinancing of maturing capital securities. The Basel 3 guidelines issued by the BSP requires that Tier-2 notes Read More …

Gov't plans to borrow less next year

Economy

Jul 122013

MANILA, Philippines – The national government has proposed a slightly lower borrowing program for next year, with the bulk still to be financed locally in a bid to take advantage of huge domestic liquidity, the National Treasurer said. A total of P714.6 billion will be borrowed by the Aquino administration next year, 2.78 percent down from this year’s P735 billion, said Rosalia de Leon in a phone interview with The STAR on Friday. “The borrowing mix will be 87 percent to 13 percent, in favor of domestic borrowings,” she said. Broken down, funds to be raised in the domestic market will amount to P620 billion, a decline of 7.44 percent from the programmed P669.8 billion this year. “We still expect strong appetite for government securities even in terms of tenor. Definitely, we see strong demand in the long-end of the curve,” De Leon said. Inflation is expected to remain benign, she explained, and thus that would drive investors to seek for higher yields which will be found in longer-termed papers. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 On the foreign market, De Leon said a total of P94.6 billion, equivalent to $2.2 billion, may be raised through bond flotations and official development assistance (ODA) from multilateral financial institutions. Of the total foreign financing, $1 billion may be sourced through offshore bond issuances, while the remaining amount of $1.2 billion may come from the World Bank and Asian Development Bank, among others. The planned external borrowings for 2014 will Read More …

World Bank: Phl should boost reforms to create more jobs

Economy

Jul 122013

World Bank: Phl should boost reforms to create more jobs

Axel von Trotsenburg, World Bank Vice President for East Asia and Pacific (Jovan Cerda) MANILA, Philippines – The Philippine government has to create more jobs to reduce poverty and sustain high economic growth, the World Bank said on Friday. “Turning high growth into inclusive growth is increasingly important for the Philippines, by deepening and accelerating reforms that will create more and better jobs to reduce poverty,” Axel van Trotsenburg, World Bank Vice President for East Asia and Pacific said. Van Trotsenburg said job generation supported by quality education remains a big challenge in the Philippines and other countries in the world, and the country needs to create high-paying jobs directed to the youth sector. The unemployment rate in the country jumped to 7.5 percent in April from the 6.9 percent in 2012 despite gross domestic product soaring by 6.8 percent in 2012 and a 7.8 percent in the first quarter of 2013. For this year, World Bank expects the Philippines to grow by 6.2 percent. Van Trotsenburg earlier met President Benigno Aquino III and the government’s economic team to discuss areas where the multilateral financial institution can help the country in funding projects aimed at reducing poverty and improving governance in the Philippines. He also noted the transfer of the $300-million development policy loan aimed at spurring job-creating and poverty-reducing growth in the country. “There is clear convergence with the government’s goal of inclusive growth and the World Bank Group’s twin goals to end extreme global poverty by 2030 and Read More …

PSE boosts info drive as new product enters local bourse

Economy

Jul 112013

PSE boosts info drive as new product enters local bourse

MANILA, Philippines – The Philippine Stock Exchange (PSE) has launched an information campaign on exchange traded funds (ETFs), a form of investment funds to be introduced in the local market. “Now that the Philippine regulatory framework for ETFs has been finalized, we can officially start accepting listing applications from prospective ETF companies. I know a lot of market participants have waited long for this product to be offered to investors and we are now all working hard to ensure that we meet the expectations of the market,” PSE President and Chief Operating Officer Hans B. Sicat said. The Securities and Exchange Commission approved last June 20 Part C of the PSE ETF rules after Parts A and B were approved last March. The local bourse then proceeded to conduct seminars to make the public aware of how ETFs work. An ETF is similar to a mutual fund that tracks a basket of assets but is traded like stocks. Unlike mutual funds, however, the price of an ETF is quoted real time so investors immediately know the buying and selling price of their shares. “For retail investors, especially those who are just starting to invest in the market, ETFs allow for a cheaper access to a diversified portfolio of stocks because investors do not have to buy multiple stocks,” the local bourse said. PSE added that the performance of an ETF is also easier to analyze and monitor because its asset per share value is updated every minute and its tracking Read More …

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