Economy – Page 539

Filinvest holding firm to issue $300-M bonds

Economy

Jan 312013

Filinvest holding firm to issue $300-M bonds

MANILA, Philippines – Filinvest Development Corp. (FDC), the listed investment holding company of the Gotianun family, said it plans to raise as much as $300 million through an overseas bond sale. Fresh funds from the bond sale, which follows a successful bond issuance of a local conglomerate, will used for capital spending this year, the company told the local bourse yesterday. In a meeting, the board of directors of FDC approved the company’s plan “to issue and float bonds in the offshore market with an aggregate principal amount between $200 million to $300 million.” “The proceeds from the bond issuance will be used by the corporation to finance its capital requirements for 2013,” it added. Target date for the bond sale is within the second quarter, subject to the approval of concerned government agencies. The exact amount and other details like the yield and maturity will determined by management, FDC said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Local conglomerates are increasingly tapping the international bond market for fresh capital. Early this month, the overseas unit of taipan John Gokongwei’s investment vehicle JG Summit Holdings Inc. raised $750 million by selling corporate bonds overseas to finance general corporate expenses. GT Capital Holdings Inc. of banking tycoon George S.K. Ty, on the other hand, plans to issue P10 billion worth of fixed-rate bonds to support its capital expenditure program. The Filinvest Group is one of the country’s leading conglomerates, with interests in real estate development (Filinvest Land Inc.), hotel Read More …

SM Prime mulls $200-M syndicated loan

Economy

Jan 312013

MANILA, Philippines – Shopping mall giant SM Prime Holdings Inc. is planning to raise around $200 million through a syndicated loan facility to bankroll its aggressive expansion here and in China, a company official said. In an interview, SM Prime chief financial officer Jeffrey Lim said the company is in talks with several financial institutions for a syndicated loan transaction, targeted in the first or second quarter this year. Lim said the company remains on an expansion binge to capitalize on a booming economy and robust consumer spending. The firm has set a P63-billion three-year capital spending program to build up to 18 malls in its bid to become a regional player. SM Prime may spend P21 billion each year to build four to five new malls at home and one mall annually in China. SM Prime ended 2012 with 46 malls across the country and five in China, with an estimated combined gross floor area of 6.3 million square meters. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The SM China malls are enjoying healthy increases in rental rates with occupancy level currently at 95 percent. SM Prime continues to sees vast opportunities in China given the latter’s growing population and emerging middle-class. The group is currently looking to acquire five properties in its second biggest market to further widen its geographical footprint. The expansion is also in line with the SM Group’s strategy to list its China assets either in Hong Kong or Singapore by 2015 in Read More …

Victorias Milling posts 39% hike in net profit

Economy

Jan 312013

Victorias Milling posts 39% hike in net profit

MANILA, Philippines – Listed sugar miller Victorias Milling Co. (VMC) registered a 39-percent growth in net income to P556 million for the financial year ending in August 2012 despite lower milling tonnage. Production data showed that ending Aug. 31,2012 the company milled 3.100 million tons of cane (TC), down from 3.116 million tons in 2011. Despite this, the company’s raw sugar production rose to 6.500 million 50-kilogram bags (LKG) in 2012 from 5.709 LKG in 2011. Refined sugar production rose to 6.032 million LKG in 2011 from 4.382 million LKG in 2011. The milling recovery rate rose to 2.06 50-kilogram bag per ton of cane milled (LKG/TC) from 1.83 (LKG/TC) in 2011. “The slight reduction of milling tonnage this year by 0.5 percent against the previous year did not adversely affect raw sugar production volume because of the improvement in sugar recovery,” the financial report said. The company noted that refined sugar production rose by 37 percent in 2012 because of major upgrades made in the refinery’s machineries. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Revenues for 2012 reached P4.6 billion, surpassing 2011 revenues by 11 percent because of higher tolling revenues. The company’s core business which comprises the production of raw and refined sugar accounts for 98 percent of the revenues for 2012. Raw sugar revenues fell by 0.42 percent year-on-year despite a 48-percent increase in volume sold as average selling price fell by 33 percent from P1, 908.90 per LKG in 2011 to P1, 283.35 per Read More …

Petron to raise $500M via hybrid notes

Economy

Jan 312013

MANILA, Philippines – Petron Corp., the country’s largest oil refiner, is planning to issue up to $500 million in hybrid capital notes, the company said in a disclosure to the Philippine Stock Exchange. Petron priced the offering on Jan. 30 at 7.5 percent. The expected issue date is on Feb. 6, the company also said. “This is to advise that the company has priced the offering last night, Jan.y 30, 2013, with an issue size of $500 million and expected issue date of Feb. 6, 2013,” Petron said. Proceeds of the fund-raising activity would be used to fund the company’s capital expenditures program, Petron president Eric Recto earlier said. In the first nine months of 2012, Petron said its consolidated net income plunged to P932 million from P7.6 billion a year earlier, largely on depressed margins in global markets. The company also said its consolidated net income of P500 million in the third quarter was down 68 percent from P1.56 billion a year earlier, Petron earlier said in a statement. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 However, the P500-million earnings was a turnaround from the P2.1-billion loss posted in the second quarter. Officials said Petron is focused on strategic initiatives that will ensure its long-term growth and profitability. Recto said the company may have more details on its projects lined up for the year after its board of directors meeting in February. Two years ago, Petron launched an ambitious $2-billion project that would entail putting up more Read More …

Goldman Sachs: Phl needs to move up value added chain to hit growth targets

Economy

Jan 312013

Goldman Sachs: Phl needs to move up value added chain to hit growth targets

MANILA, Philippines – The Philippines needs to “move up the value added chain” if it is to reach its target of 8.5 percent growth by 2016, an investment bank said on Thursday. “The trend growth for the last 10 years was around five percent. To increase that to eight percent, that would entail a couple of things,” said Mark Tan, executive director for Global Economics, Commodities and Strategy Research of Goldman Sachs. The bank forecast stable economic growth for the country at the range of 5 to 6 percent fromn 2013 to 2016. The country, which expanded by beyond-target 6.6 percent last year, is forecast to slow down to 5.5 percent this year and the next before picking up again to 5.6 percent and 5.8 percent in 2015 and 2016, respectively. The outlooks fall well-below government’s medium term targets: 6 to 7 percent this year, 6.5 to 7.5 percent in 2014, 7 to 8 percent in 2015 and 7.5 to 8.5 percent in 2016. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Consumption has held up but more work needs to be done in infrastructure development, labor productivity and the relation between the two to maximize the country’s growth potentials, Tan told reporters. In particular, “better labor skills” coupled with continued accumulation of capital will be a good combination toward achieving the Aquino administration’s targets. The public-private partnership (PPP) initiative, despite some delays, will also be worth pursuing. “It also needs to do more focus on labor productivity, upgrading Read More …

Phl think tank among world's best

Economy

Jan 312013

MANILA, Philippines – State think tank Philippine Institute of Development Studies ranked among the best in the world in a report published by the University of Pennsylvania. “In the 2012 Global Go To Think Tanks Report and Policy Advice of the Think Tanks and Civil Societies Program of the University of Pennsylvania, PIDS ranked 40th and 79th on the list of the world`s best social policy think tanks and development think tanks, respectively,” the state agency said. The Go To Think Tank index ranks 6,603 think tanks in 182 countries according to region and specialization. For 2012, more than 1,100 individuals from 120 countries participated in the nominations and rankings process, the report said. “We are pleased with the continued international recognition for our quality of policy research,” PIDS President Josef T. Yap said. “Still, we feel that no formulaic rankings can fully capture the distinctiveness of any think tank. The Global Go-To Think Tank is just one measure of a think tank’s performance and impact, and should be used in conjunction with other metrics. PIDS continues to be the authority in Philippine economic and social development policy research and is one the most influential, most quoted, and most trusted think tanks in the country and in the region,” he added. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Established in 1977, PIDS has been engaged in conducting long-term, evidence-based research used for the formulation of socioeconomic policies in the country.

LT Group sets dividend policy

Economy

Jan 302013

MANILA, Philippines – LT Group Inc., the newly-consolidated flagship holding firm of tobacco, beer and airline magnate Lucio Tan, has set up a dividend policy promising shareholders potentially hefty returns for a profitable performance. In a disclosure to the local bourse, LT Group said its board of directors “approved the adoption of a dividend policy that provides for the company to declare dividends of approximately 20 percent to be paid out of the unrestricted retained earnings.” Unrestricted earnings represent available cash that can be handed out to stockholders as dividends. The distribution of such unrestricted retained earnings will not affect the financial strength and competitiveness of a company. LT Group said the dividend declaration depends on several consideration of the board of directors. Specifically, the board should decide on factors like “restriction of current and prospective financial covenants, current and prospective capital needs of planned projects and regulatory capital requirements of subsidiaries, among others,” LT Group said. LT Group serves as the umbrella company for Tan’s various businesses including Asia Brewery Inc., Fortune Tobacco Corp., Eton Properties Philippines Inc., Philippine Airlines, Air Philippines Corp., Philippine National Bank (PNB) and Allied Banking Corp. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The conglomerate is banking on good prospects this year, particularly due to the election season that will boost consumer spending. In the nine months to September last year, LT Group’s net income slightly fell to P2.5 billion from P3.08 billion a year earlier as net sales slipped to P18.9 Read More …

IFC okays P1-B investment in SPV

Economy

Jan 302013

MANILA, Philippines – International Finance Corp. (IFC), the private sector investment arm of the World Bank Group, has approved a P1.02-billion investment in a special purpose vehicle (SPV) to purchase Plantersbank’s non-performing loans, the agency said. In a statement, IFC said this would help Plantersbank, run by the family of Amb. Jesus P. Tambunting, unlock its capital and increase lending to smaller enterprises in a move to stimulate economic growth and create jobs. IFC said they have entered into a partnership with OPIF Corp. and Altus Capital Partners to become co-investors for the SPV, called the Philippine Asset Growth Opportunity. “Plantersbank wants to scale up its lending particularly to small enterprises in the countryside and other sectors that promote job creation and grow local economies,” said Tambunting, Plantersbank chairman and CEO. “IFC’s new investment will strengthen our balance sheet, generate liquidity and help us access additional capital so that we can achieve that goal.” Following the global financial crisis, IFC launched a debt and asset recovery Program to make direct investments in businesses that need debt restructuring, in pools of distressed assets, and in specialized companies that manage these assets. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 IFC also invests indirectly through investment funds that target distressed assets and companies. The program allows banks to focus on their core function of extending credit to borrowers rather than on unloading non-performing assets. “IFC’s DARP investments help temper the volatility and lack of market confidence brought about by the global Read More …

Etihad to launch flights between Abu Dhabi, Amsterdam

Economy

Jan 302013

Etihad to launch flights between Abu Dhabi, Amsterdam

MANILA, Philippines – Etihad Airways, the national airline of the United Arab Emirates, will launch daily flights between the airline’s home-base of Abu Dhabi and Amsterdam, the capital of the Netherlands. The new EY77 and EY78 services will begin on May 15, 2013 and carry the KL code of Dutch national carrier, KLM. The daily flights will complement KLM’s current service between Amsterdam and Abu Dhabi which will increase to daily from the summer and carry Etihad Airways’ EY code, ensuring that the two airlines can offer a combined double daily service. Speaking at a press conference in Amsterdam, James Hogan, president and chief executive officer of Etihad Airways, and Peter Hartman, President and chief executive officer of KLM, also disclosed details of the expansion of the codeshare agreement between the two airlines. Hogan said: “We are delighted that Amsterdam will become a part Etihad Airways’ global network from May 15. The Dutch capital joins a group of 17 leading European cities that Etihad Airways flies to including Brussels, Dublin, Frankfurt, Geneva, London and Paris. The double daily service between Amsterdam and Abu Dhabi will benefit passengers looking to travel from the Netherlands to Abu Dhabi and beyond to destinations like Sri Lanka, Pakistan and Australia.” “This is indicative of Abu Dhabi’s growing importance as a global hub. In addition to Amsterdam, Etihad Airways will also launch flights to Sao Paulo, Washington DC, and Ho Chi Minh City in 2013,” he added. Business ( Article MRec ), pagematch: 1, sectionmatch: Read More …

PSEi hits all-time high for the 11th time in 2013

Economy

Jan 292013

PSEi hits all-time high for the 11th time in 2013

MANILA, Philippines – The Philippine Stock Exchange index broke past the 6,200 level on Tuesday, setting its 11th record for the year. The bellwether PSEi closed at 6,234.73, gaining 42.31 points or 0.68 percent. This went past the previous high of 6,192.42 posted last Jan. 28. “The volumes we’ve seen in the past few days show that there is increased liquidity in the system that is finding its way into the stock market. This is supported further by expectations of benign inflation and low interest rates. Sentiment continues to be upbeat on the growth performance of the Philippine economy for the year which should support the index’s journey to new territories,” PSE President and Chief Executive Officer Hans B. Sicat said. The Aquino administration said the local index has made 72 all time records since it took office in 2010.

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