philstar.com - Business

Ayala conglomerate raises P3.3B via treasury shares

 Economy
May 302013
 
Ayala conglomerate raises P3.3B via treasury shares

MANILA, Philippines – The country’s oldest conglomerate Ayala Corp. (AC) took advantage of liquidity in the equity market to raise P3.3 billion in fresh capital for its power and infrastructure projects. In a regulatory filing, AC said it completed the sale of 5.18 million common shares held in its treasury. “This raised cash proceeds of approximately P3.3 billion, which AC intends to use to fund existing and potential sizable projects in the infrastructure and power sectors,” AC said. “This new funding will further strengthen our balance sheet to build up our portfolio in these two sectors,” said AC president and chief operating officer Fernando Zobel de Ayala. At P647 per share, AC’s shares were sold at a three percent discount compared with the previous closing price of P667. The conglomerate earlier announced that is looking to invest up to $1 billion over the next five years for the capital intensive but high-yielding power and infrastructure sectors. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We hope to be able to contribute in some measure to the development of these sectors and at the same time create future sources of earnings and value for the group,” Zobel said. In the last two years, AC has committed more than $300 million of equity on power projects with roughly 900 megawatts (MW) of gross generating capacity. “It is looking to increase its equity commitment to $500 million to $600 million in the next 12 to 18 months,” AC said. Given its bullishness Read More …

Lopez Group’s P12-B RE projects get BOI tax incentives

 Economy
May 302013
 
Lopez Group’s P12-B RE projects get BOI tax incentives

MANILA, Philippines – A unit of the Lopez Group has secured tax perks for its three renewable energy (RE) projects worth P11.96 billion. “The BOI (Board of Investments) approved this month First Gen Mindanao Hydro Power Corp. (FGMHPC) as RE developer of hydropower energy resources for its three projects in Mindanao worth P11.96 billion with a total energy capacity 62.75 megawatts (MW),” the agency said in a statement yesterday. With the approval of the registration of the three projects, FGMHPC can enjoy incentives such as income tax holidays and duty-free importation of equipment for seven years as provided by the Renewable Energy Act of 2008. RE is listed as a mandatory activity in the 2012 Investment Priorities Plan. The government provides incentives to encourage firms to invest in priority activities or sectors. The first of the three projects is the 23 MW Bubunawan hydropower project worth P5.07 billion, which will be located in  Bukidnon. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The project, which will have two units of turbine-generator sets, is estimated to produce an annual average of about 138 gigawatt hours (GWH) of electrical energy with a maximum annual generation capability of about 201 GWH of clean and renewable energy. The project is expected to provide jobs to up to 45 personnel. The second project worth P1.803 billion will be situated within the Cabadbaran town of Agusan del Norte. The project, which will involve the construction and installation of up to three units of 3.25 MW Read More …

Gov’t on track to meeting debt, revenue goals

 Economy
May 302013
 
Gov’t on track to meeting debt, revenue goals

MANILA, Philippines – The government is “on track” to meeting its debt and revenue goals, the Department of Finance (DOF) said, despite the first-quarter data showing new figures were actually lower than their previous year’s levels. Revenue and debt ratios – which are important gauges for credit raters – were released yesterday, following the economic performance report that showed growth hitting 7.8 percent as of March. For the first quarter, state revenues already accounted for 13.7 percent of economic output, lower than the 14.9 percent posted in the same period last year. The target has been set at 14.7 percent. Of these, tax collections were equivalent to 11.92 percent, down from 12.5 percent, but on track to meeting the 13.5-percent target for the year. Revenue and tax efforts gauge how much the government has collected as the economy expanded. Fast economic growth should mean higher revenues – and ratios – and vice-versa. Finance Assistant Secretary Ma. Teresa Habitan, in an interview, downplayed the year-on-year decrease in figures. Business ( Article MRec ), pagematch: 1, sectionmatch: 1  “It is too early to tell how our tax effort would turn out for the year based on just one quarter,” Habitan told The STAR.  “We are hopeful tax collections would eventually catch up with a buoyant economy,” she added. By way of comparison, the economy grew 7.8 percent during the first quarter, while total revenues only inched up 0.9 percent. Last Monday, the government said it attained a “record-high” budget surplus of P36.803 Read More …

Lucio Co holding firm completes share swap

 Economy
May 302013
 
Lucio Co holding firm completes share swap

MANILA, Philippines – Retail tycoon Lucio Co has completed a P74-billion share swap that finalized the infusion of his retail, petroleum and real estate assets into listed holding firm Cosco Capital Inc. Cosco Capital will raise fresh funding by selling two billion shares to institutional investors, the company said in a disclosure. In the transaction, Cosco Capital issued 4.98 billion shares in exchange for 1.51 billion common shares of Lucio Co Group of Companies (LCGC). “The total value of the swap transaction is P74.8 billion,” said Cosco Capital. LGCG is composed of Puregold Price Club Inc; Premier Wine & Spirits Inc; Meritus Prime Distributions Inc; Montosco Inc; Pure Petroleum Corp; Ellimac Prime Holdings Inc; and Nation Realty Inc. Following the share swap, Cosco Capital will have a total issued capital of 6.26 billion shares. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The holding firm yesterday implemented a voluntary trading halt for its shares. Cosco Capital said principal shareholders Lucio and Susan Co will also conduct a special block sale of up to two billion common shares to qualified institutional buyers in the Philippines and abroad. Under the “top-up” equity placement, the major shareholders will then subscribe to the same number of shares sold to institutional investors. Cosco Capital earlier planned to conduct a $500-million sale of existing and new shares that will increase its public float and beef up liquidity. The company tapped Deutsche Bank and JPMorgan for the deal. Cosco Capital, formerly Alcorn Gold Resources Corp., earlier Read More …

Phl stocks tumble on US Fed concerns; Q1 GDP fails to cheer market

 Economy
May 302013
 
Phl stocks tumble on US Fed concerns; Q1 GDP fails to cheer market

MANILA, Philippines (Xinhua) – The Philippine stock market suffered a huge loss today despite a better-than-expected growth of the Philippine economy in the first quarter. The bellwether Philippine Stock Exchange index dived by 3.81 percent or 275.22 points to 6,953.33. The broader all-share index slipped by 3.02 percent or 133.99 points to 4,298.18. Trading volume reached 1.9 billion shares worth P16.86 billion ($397.26 million) with 160 stocks declining, 15 advancing, and 38 were unchanged. All six counters were down. Analyst Justino Calaycay of Accord Capital Equities Corp. said a string of negative news overseas pulled down the Philippine stock market on Thursday, overshadowing the positive gross domestic output (GDP) of the country. “Concerns over the U.S. Federal Reserve’s stimulus stance and questions over European and China’s growth added dark clouds over the horizon,” Calaycay said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Overnight, US stocks retreated off a record high on fears that improving economic numbers may prompt the Federal Reserve to step on the stimulus brakes. European shares were likewise down with investors reading off a similar note, in addition to International Monetary Fund’s outlook of a slower growth for China, the world’s second largest economy. The international, multilateral lending institution project China to grow at less than 8 percent this year. These developments overshadowed the news of  a higher than expected growth rate. The National Statistical Coordination Board reported Thursday that an upbeat business and consumer sentiment, increased public spending and a robust manufacturing and construction Read More …

Tourist arrivals up by 10%

 Economy
May 302013
 
Tourist arrivals up by 10%

MANILA, Philippines – Foreign visitor arrivals soared in the first four months of the year with a 10.12-percent increase from the same period in 2012, the Department of Tourism (DOT) noted on Thursday. The state agency said a total of 1,649,458 foreigners visited the country from January-April, with January yielding the largest volume of 436,079 visitors and February posting the highest growth of 15.52 percent. The figure represents 30 percent of the target arrivals for 2013, DOT added. Bringing the most number of visitors was Korea with 406,595 or a market share of 24.65 percent and growth of 23.08 percent. This was followed by the United States with 246,011 visitors or a 14.91-percent share, Japan (148,950 or 9.03), China (132,307 or 8.02 percent), Australia (72,015 or 4.37 percent) and Taiwan (53,867 or 4.24 percent). Rounding out the top sources of foreign visitors are Singapore with 55,096 (15.90 percent), Canada with 50,352 (4.25 percent), Hong Kong with 45,734 (12.87 percent), United Kingdom with 43,055 (3.10 percent), Malaysia with 35,069 (8.36 percent) and Germany with 28,799 (9.16% percent). Other source markets with double-digit gains include Russia (30.33 percent), India (23.13 percent) and France (20.10 percent), DOT said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “This growth is an affirmation of our various marketing and destination development activities, strengthened by partnerships with the various stakeholders. While the upsurge may primarily be attributed to the summer season, it is also a clear indication that the nation has galvanized its reputation as an Read More …

Gov't keeps targets despite surprising first-quarter growth

 Economy
May 302013
 
Gov't keeps targets despite surprising first-quarter growth

MANILA, Philippines – Growth targets will be retained while inflation forecasts will be revisited, officials said, after the first-quarter economic expansion both surprising  policymakers and becoming the fastest in Asia for the period. Socioeconomic Planning Secretary Arsenio Balisacan said the Aquino administration is “sticking” to its six- to seven-percent growth target for the year “at the moment,” even after the uptick for the first three months registered way beyond at 7.8 percent. “We periodically review assumptions. We will consider first quarter performance when we meet,” Balisacan told reporters on Thursday after the data’s announcement. The Development Budget Coordinating Committee (DBCC), the body setting macro-economic targets, has yet to set a meeting to review its assumptions, but Budget Secretary Florencio Abad acknowledged growth would be sustained in the coming months. “We intend to sustain or surpass the very standards we set over the succeeding quarters,” said Abad, who is also DBCC chairman, in a statement. He did not elaborate. The 7.8-percent growth last quarter surpassed all growth rates in Asia, notably in China (7.7 percent), Indonesia (six percent), Thailand (5.3 percent), Vietnam (4.9 percent), Malaysia (4.1 percent), Japan (3.5 percent), South Korea (1.5 percent). Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Strong consumption driven by election-spending, investments and government spending were tagged as the drivers for the growth, which was the fastest in three years. A stable inflation, averaging three percent as of March, was also noted. However, the Bangko Sentral ng Pilipinas (BSP) said there is need to Read More …

NEDA chief: GDP growth still about the poor

 Economy
May 302013
 
NEDA chief: GDP growth still about the poor

A man cooks his food along a sidewalk in Tondo district, Manila. EDD GUMBAN/FILE PHOTO MANILA, Philippines – The country may have an impressive gross domestic product (GDP) in the first quarter, but an economic official believes that this growth is still about its impact to the poor. The National Statistical Coordination Board (NSCB) revealed on Thursday that the Philippines’ GDP grew by 7.8 percent in the first three months, exceeding market and government expectations and beating Southeast Asian nations and even China. But Socioeconomic Planning Sec. Arsenio Balisacan admitted that the issue is all about making the GDP growth inclusive. “We know, however, that inclusive growth is not about averages, but about the lower part of the income distribution, namely, the poor,” said Balisacan, who is also the director-general of the National Economic and Development Authority (NEDA). “On the other hand, we also know that growth is still the necessary condition for inclusive growth,” he added. Malacanang said its goal is to ensure that the recent economic gains of the country are being felt by all. “That is always the target; that nobody will be left behind,” said Deputy Presidential Spokesperson Abigail Valte. “With the high numbers that we have, even with the boost in investor confidence, the rallies that you’ve been seeing in the stock market, ang importante po sa atin ay ‘yung maramdaman ng lahat [‘yung economic growth],” she added. But Valte noted that the effects of these economic gains do not happen overnight. The NSCB said Read More …

Globe asks court for Bayantel's debt restructuring

 Economy
May 292013
 
Globe asks court for Bayantel's debt restructuring

MANILA, Philippines — Local carriers Globe Telecom and Bayan Telecommunications have filed a motion with a court seeking to restructure Bayantel’s debt of $423.3 million. Following Globe’s tender offer for the Bayantel debt in 2012, Globe currently holds approximately 96.5 percent of the total financial indebtedness of Bayantel. The joint motion aims to achieve a rehabilitation of Bayantel. Globe disclosed Bayantel’s operations from traditional fixed line services, growing competition, have not generated sufficient revenue to continue making the debt payments under its present rehabilitation plan. If approved by the court, Globe expects the restructuring would lessen the debt to about $131.3 million. Globe believes such a restructuring would allow them to further strengthen collaborative efforts with Bayantel regarding local exchange networks, corporate data and broadband businesses.

Philippines called 'brightest' in Southeast Asia

 Economy
May 282013
 
Philippines called 'brightest' in Southeast Asia

Photo shows the Makati City skyline during sunset. ANDY ENERO MANILA, Philippines – A report by the Institute of Chartered Accountants in England and Wales (ICAEW) said the Philippines is significantly contributing to the “glowing” Southeast Asian region with its bright economic prospects. “The Philippines is the brightest spark in glowing Asean region,” the report said, citing the recent quarterly review Economic Insight: South East Asia by its partner organization Cebr that highlights Indonesia, Malaysia, the Philippines, Singapore and Thailand. ICAEW said that the “very positive” outlook for the country which is expected to grow 5.1 percent in GDP this year and in 2014 can be attributed to strong exports, “booming” household expenditures and the government’s heavy infrastructure investments. “The country looks set to shake off its former reputation as the ‘sick man of Asia’,” Cebr’s macroeconomics head Charles Davis said in a statement. Davis said, however, that the country’s capacity constraints will likely lead to a slowdown in growth, which is seen to fall to 4.5 percent in 2015. Such constraints cause higher inflation and tighter monetary policy. Furthermore, the growth in stock prices in the Philippines–currently at 34 percent–is seen unsustainable and suggests a bubble to emerge, Davis warned. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Stagnation in industrialized nations means investors are turning to emerging economies in search of higher yield,” Davis, also an economic advisor at ICAEW, said. ICAEW South East Asia director Mark Billington, meanwhile, added that the Philippines’ emergence in the region Read More …

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