MANILA, Philippines — The peso exchange rate closed lower at P42.75 to the US dollar yesterday at the Philippine Dealing & Exchange Corp. (PDEx) from P42.44 the previous day. The weighted average rate depreciated to P42.643 from P42.461. Total volume amounted to $1.250.45 billion.

7-Year Bonds Fetch 4.504%

The Philippine government decided at an auction yesterday to reissue a treasury bond due August 2018 at yield of 4.504%, lower than the yield fetched when the bond was first sold, due to strong demand for the paper. Originally issued in August last year, the seven-year bond was priced at par with a coupon of 5.000%.

Total tenders for the paper reached P32.7 billion, more than three times the P9 billion offered at yesterday’s Bureau of Treasury auction. National Treasurer Roberto Tan said the government may cancel a scheduled T-bill auction on Feb. 20 to make way for a retail T-bond sale on Feb. 21.

ATS spins off 3 Subsidiaries

ATS Consolidated Inc., the former Aboitiz Transport System Corporation, is spinning off control over its reefer van container and isotank businesses, as well as subsidiary ATS Express Inc.

In a disclosure to the Philippine Stock Exchange, ATS said its board has approved the creation of Special Container and Value Added Services Inc. as a fully owned subsidiary. The new firm will have an authorized capital stock of P5 million and will take over the reefer van container and isotank businesses of ATS and one of its subsidiaries, ATS Express. (JAL)

S.M.B.I’S. P20-B bonds rated AAA

Philippine Rating Services Corporation (PhilRatings) has assigned its highest issue rating of PRS Aaa for San Miguel Brewery Inc.’s (SMBI) proposed bond issuance of up to P20 billion. The bonds will have a minimum tenor of five years up to a maximum of ten years and the proceeds will be used to refinance the company’s current and upcoming maturities.

These include Series A of its outstanding P38.8 billion bond issue worth P13.59 billion which will mature on April 3, 2012 and a US$300-million term facility. (JAL)

Takenaka Airport Deal Done Soon?

The government and Takenaka Corp. are close to agreeing on a “best price” for 23 airport services that the Japanese company can provide at the Ninoy Aquino International Airport, Transportation Secretary Mar Roxas told reporters. The government will bid out the services if talks with Takenaka fail, Roxas said. (Bloomberg)