LENT is a time when many Christians fast as a way to focus on God. The Lenten season ended on Holy Saturday. For taxpayers, however, the end of Lent marks the start of the preparation — and later, the submission — of income tax returns.
Apr 012013
Mar 142013
MANILA, Philippines – Monetary officials slashed on Thursday the special deposit account (SDA) rate to 2.5 percent in a bid to push out idle funds to help fund economic activity and boost growth amid a low inflation environment. Policy rates were also kept steady at record-lows of 3.5 percent for overnight borrowing and 5.5 percent for overnight lending, the Bangko Sentral ng Pilipinas (BSP) said. The rate of the SDA— deposits of banks and trust departments with the BSP— was cut by 50 basis points from three percent. This was the second cut made for the year, following a similar reduction in January. “The Monetary Board’s decision to maintain the policy interest rates at their current levels is based on its assessment that the inflation environment over the policy horizon is likely to remain manageable,” BSP Governor Amando Tetangco, Jr. told reporters. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Inflation is seen to average 3.3 percent for 2013 and 2014, slightly faster than the January forecasts of three percent and 3.2 percent, respectively. Both are still within the low-end of the official 3-5 percent target range. “The revisions (to forecasts) were because of the higher actual outturn for the January inflation,” BSP Assistant Governor Ma. Cyd Tuaño-Amador said in a briefing. Inflation accelerated to 3.4 percent in February from 3 percent in January. This put the average so far to 3.2 percent. Amador said with prices under control, BSP could allow more liquidity to flow out of the Read More …
Mar 132013
MANILA, Philippines – Allegations of practices that corrupted Philippine officials lack merit, Universal Entertainment Corp. (UEC) of Japanese gambling tycoon Kazuo Okada said. In a report to the Nevada Gaming Control Board (NGCB), UEC said the allegations were “generated for an ulterior purpose and motive.” The Freeh Report has accused Okada of “apparent” violation of the Foreign Corrupt Practices Act (FCPA). Specifically, the report accused Okada of violating “Philippine Constitutional provisions and statutes that require 60 percent land ownership by Philippine nationals; the possibility of making another similar payments to a Korean government official; alleged admissions regarding gift-giving; supposed failures to comply with various requests of Wynn Resorts Ltd.; and the payment of expenses for former Pagcor chairman Efraim Genuino’s trip to the 2008 Beijing Olympics.” UEC, in its nine-page information report to NGCB, stated: “The report was not used to provide guidance to licensees, but to justify the involuntary redemption and purported cancellation of Aruze USA Inc.’s 24.549 million shares of Wynn Resorts stock at a $1 billion discount and in the form of a subordinated note.” Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The move restored Steve Wynn as the largest shareholder of Wynn Resorts. On the payment and gift giving allegations regarding Pagcor officials, UEC said two of its employees responsible for allowing unauthorized charges were reprimanded and are no longer with UEC. Okada and former business partner Wynn are in a bitter corporate feud, which started when the Japanese pachinko businessman questioned the $135-million Read More …
Mar 132013
MANILA, Philippines – The parent firm of tile maker Mariwasa Siam Ceramics is banking on the country’s rosy economic prospects to jack up its sales target to $170 million this year. This as new and existing product lines will be offered to property and infrastructure developments nationwide, a company executive said. “In the Philippines, we will have 18 percent growth,” Jakkrit Suwansilp, vice-president for sales and marketing of Mariwasa, said in a briefing. “The growth will come from Siam Cement Group (SCG) and Cotto products. We also have organic growth from Mariwasa,” he said, adding that higher sales will mean another record high for the company. Parent firm SCG of Thailand earlier announced that the company’s revenues from its Philippine operations reached $142 million, surging 50 percent from a year ago. “In the Philippines, we see the economy booming. This is a good opportunity for us to bring in our innovative products,” Suwansilp said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The company is hoping to generate more sales in the housing segment and through the launching of more Public-Private Partnership (PPP) infrastructure projects, Suwansilp said. The Philippines accounts for around eight percent of SCG’s consolidated sales in Southeast Asia, which hit $1.004 billion last year. Suwansilp said the company wants to grow the contribution of the Philippines in the region and produce more products here, but is hampered by high cost of electricity. SCG operates in the Philippines through Mariwasa-Siam, constructive and decorative building materials seller SCG Read More …
Mar 122013
MANILA, Philippines – Casino complex developer Bloomberry Resorts Corp. has secured an agreement to borrow as much as P14.3 billion for the expansion of its soon-to-open Solaire Manila Resort and Casino. In a disclosure to the stock exchange Bloomberry said its subsidiaries Sureste Properties Inc. and Bloomberry Resorts and Hotels Inc. have entered into a loan deal with several banks. “Lenders BDO Unibank Inc., China Banking Corp. and Philippine National Bank have agreed to make available to SPI an additional loan facility of up to P14.3 billion to help finance the construction of the Phase 1a expansion of the hotel and entertainment building complex of Solaire Manila,” Bloomberry said. The deal was arranged by BDO Capital and Investment Corp. Bloomberry, controlled by port magnate Enrique Razon Jr., earlier announced its plan to spend $200-250 million for the expansion that will allow the company to open an-all-suite hotel, 3,900 parking slots, a shopping center with luxury brand stores and an entertainment theater by next year. The $750-million Phase 1 of Solaire Manila will start welcoming guests in its 500-room casino hotel near Manila Bay on March 16. It will also offer a world-class casino encompassing 18,500 square meters of space and 15 luxurious dining options. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The casino hotel is situated in the Entertainment City, a 120-hectare property reclaimed from Manila Bay and owned by the state-run Philippine Amusement and Gaming Corp. (Pagcor). Bloomberry is one of the four license holders in Entertainment Read More …
Mar 122013
MANILA, Philippines – Sun Life Grepa Financial Inc., the joint venture bancassurance company between Sun Life Financial (Philippines) and Rizal Commercial Banking Corp. (RCBC) of the Yuchengco Group, is looking to grow its bancassurance premiums by at least 35 percent to P7 billion this year. Bancassurance also known as cross-selling, is a business relationship between a bank and a life insurance company wherein the insurer is allowed access to the bank’s branches and clients. Last year, Sun Life Grepa’s total bancassurance premiums was valued at P5.8 billion, which was 88 percent higher than the 2011 premiums of P3.1 billion. The joint venture was only formed in 2011 and had already ranked eighth among the 32 life insurance companies in the Philippines in that year. Sun Life Grepa president and chief executive officer Naresh Krishnan also reported that assets under management (AUMs) of its variable or unit-linked products reached P4 billion. Variable or unit-linked products are a combination of insurance coverage and investments. The investment portion of the variables, or AUMs, are placed in funds invested in the equity or stock market funds, bond or fixed income funds, or a combination of the equities and fixed-income, more popularly known as balanced funds. In terms of market share of total premiums, Krishnan said 70 percent of premiums came from the bancassurance distribution network, another 15 percent from its agency force, and 15 percent from group insurance. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The bancassurance distribution network is composed of Read More …
Mar 122013
MANILA, Philippines – President Aquino made a pitch for Filipino workers before potential investors yesterday, saying their creativity, dedication and loyalty are worth investing in. In a speech to keynote the Philippine Investment Forum 2013 at the Manila Peninsula in Makati City, the President cited the success of the business process outsourcing industry in which Filipinos have excelled and brought the country “to great heights in such a short time.” “Given the opportunity, they will do the same for you, whatever industry you may be involved in,” Aquino said. Aquino said the intrinsic characteristics of Filipino workers are what investors want from their work force. The President also called on investors to partner with the government in expanding their businesses in the country. He said the country is in a better position to offer more and meet their needs. He said potential investors could invest in agriculture, the source of income for some 12.1-million Filipinos; tourism, with the target 56-million tourist arrivals by 2016; and infrastructure, which is seen to support agriculture and tourism through the development of road networks, ports, and airports. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Whether in these three sectors or in others…we know that, here, hard work, innovation, and creativity are rewarded with success,” he said. The President said new investments would create thousands of jobs that will put food on the tables, send children to school and meet family expenses. “Together, we will be empowering them; giving them greater power to Read More …
Mar 122013
MANILA, Philippines – Manila Electric Co. (Meralco), the country’s largest power distributor, and Hong Kong-based investment holding First Pacific Co. Ltd., are eyeing to borrow from lenders to fund their S$600-million ($488 million) acquisition of a Singaporean power firm, a top executive said. Meralco chairman and First Pacific managing director Manuel V. Pangilinan said the two companies have enough funds though to close the deal by the end of the month but are likely to refinance the acquisition costs. “Both Meralco and First Pacific have the funds necessary to close. We’re now looking at, as part of the total consideration, borrowing some of the acquisition funding. We don’t know the exact quantum yet, but both First Pacific and Meralco have the funds,” Pangilinan said on the sidelines of Meralco’s Luminaries Awards Monday night. Last week, Meralco announced that together with First Pacific, it would “take a 70-percent interest in a Singapore power project using a joint venture company formed for this purpose.” Both companies have formed FPM Power Holdings Ltd. (FPMP) to acquire GMR Energy (Singapore) Pte Ltd. from India’s GMR Infrastructure Ltd. (GMRIL). The joint venture company will shell out S$600 million plus foreign exchange adjustments to buy out GMRIL’s entire 70-percent share in GMR Energy. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We have the funds necessary to close it on due date. Most likely, we will refinance with some leverage post-closing (date),” Pangilinan stressed. GMR Energy is currently in the advanced stage of construction of Read More …
Mar 122013
MANILA, Philippines – Publicly-held budget carrier Cebu Air Inc. (Cebu Pacific) now has more aircraft that rival national flag carrier Philippines Airlines (PAL). Cebu Pacific accepted the delivery of its 43rd aircraft last March 7 from the Airbus facility in Hamburg, Germany. The airline’s new Airbus A320 is the second of its kind in the Philippines equipped with Sharklets, a new fuel-saving wing tip device. “Cebu Pacific now operates the largest Airbus fleet in the Philippines,” the company said in a statement. The airline’s fleet now includes 25 Airbus A320, 10 A319 aircraft and eight ATR 72-500 aircraft. Cebu Pacific is scheduled to take the delivery of 51 more aircraft consisting of 17 A320, 30 Airbus A321neo, and four more A330-300 between 2013 and 2021 With this fleet, the low cost carrier is set to add flights during the Holy Week period to accommodate demand, and provide more opportunities for travel. It will mount an additional daily flight from Manila to Hong Kong from March 20 to 30, 2013. There will also be an additional flight from Manila to Legazpi on March 27 to 28, as well as an additional flight from Manila to Naga on March 28 and 30. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Travelers bound for Puerto Princesa from Manila may also book seats on the airline’s additional flight on March 29. Cebu Pacific operates the most extensive network in the Philippines with 34 domestic and 21 international destinations and hubs in Manila, Cebu, Read More …
Mar 072013
MANILA, Philippines – Fresh from raising $500 million in new funding, oil giant Petron Corp. is set to generate another $250 million through the issuance of hybrid notes for its refinery expansion program. “This is to advise that the company has priced the offering Wednesday night with an issue size of $250 million and expected issue date of March 11, 2013,” Petron told the local bourse. The notes, which carry a yield of 6.551 percent, will be consolidated with and form a single series with the $500-million securities issued on Feb. 6. “The transaction was executed nimbly against a strong market, with positive sentiment buoyed on the back of the Dow Jones touching a record high the previous day in the US,” the Hongkong and Shanghai Banking Corp. (HSBC) said. HSBC, Deutsche Bank, Standard Chartered and UBS were tapped as joint bookrunners and lead managers for the largest offshore perpetual in the Philippines. HSBC said the order books were oversubscribed, with total demand reaching $2.5 billion from more than 150 accounts. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “A tap of the hybrids made sense for both investors who are looking for more Petron exposure, and for the issuer to raise cost effective funding to support its refinery master plan,” said HSBC Philippines president and CEO Wick Veloso. Early last month, the country’s largest oil refiner completed the sale of $500 million worth of dollar-denominated securities. Proceeds of the activity would be used to fund the company’s capital Read More …