The peso rate closed at P54.94 to the US dollar last Friday at the Philippine Dealing System of the Bankers Association of the Philippines. The weighted average rate stands at P55.049. Financial markets will be closed on Monday, Tuesday and Friday next week for public holidays.
Arroyo cites Merrill Lynch report
President Gloria Macapagal Arroyo hailed the latest advisory of the prestigious financial and investment rating agency Merrill Lynch upgrading the economic outlook for the Philippines for the next year to overweight status. The President quoted some of the highlights of the Merrill Lynch report, particularly the portion saying the fiscal outlook for the Philippines appears stronger for 2006. On the political front, the ML report noted that despite the continued political turmoil, "President Arroyo’s position looks secure" while the economic fundamentals are improving with positive prospects for economic growth. Merrill Lynch, & Co. Inc., through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis.
Call center plans new expansion
The California-based Five9, a global leader in hosted call center solutions, is planning to expand its operations in the Philippines by putting up hundreds of small and medium sized call centers that are expected to generate more than 90,000 jobs for Filipinos over the next 12 months. This information was relayed to Preside Gloria Macapagal Arroyo by Brian Silverman, president & CEO of Five9, during the latter’s courtesy call on the Chief Executive at Malacanang Study Room. "Five9, an integral part of the government’s job creation program, plans to create over 90,000 new job for the Filipinos by setting up hundreds of new small and mid-sized call centers throughout the country over the next 12 months,’ Silverman said.
EPCIB to sell 10.84% block
Equitable PCI Bank will dispose its disputed 10.84 percent share in a subsidiary EBC Investments Inc. in compliance with the central bank directive, bank chairman Martin Romualdez said. The Bangko Sentral ng Pilipinas approved the acquisition of the treasury shares in 1999 on the condition that the bank would dispose of the shares within two years. However the bank asked the BSP for another five years. Last Friday the BSP policymaking body the Monetary Board said it has denied the appeal of Equitable PCIB to keep the treasury shares for another five years. The bank was supposed to sell these shares after two years of owning them as directed. According to Romualdez, the bank will comply with the BSP order, giving them two options in disposing the shares. BSP rules state that shares owned by a subsidiary are required to be deducted from capital and be reflected as treasury shares. He said market liquidity would not be affected. "We always considered these as treasury shares and by retiring them it recognizes the fact that they were never in the market to begin with," the bank chair added. In July the BSP threatened the bank with sanctions last July when it was still unable to sell the shares in the investment house. The shares were held as pawn for the control of the bank. The adversaries were the Go family and majority shareholders namely the Government Service Insurance System, the Social Security System and the Romualdez family.
BAP chooses AML solution
The Association of Bank Compliance Officers of the Philippines (ABCOMP), facilitated by the Bankers Association of the Philippines (BAP), has selected LogicaCMG and NetEconomy as the preferred suppliers to develop the first national anti-money laundering (AML) system in the Philippines. Countering this illegal activity is a major part of the Philippines’ efforts to comply with Financial Actions Task Force’s (FATF) anti-money laundering guidelines and recommendations. Noncompliance puts considerable international political pressure on the country and makes it difficult for its financial institutions to conduct business with the rest of the world. Leonilo Coronel, Executive Director of BAP said: "The fight against international money laundering not only provides customers within our country with a safer banking environment, but it is also a key structure in the fight against terrorism. We are determined to make our banking system as protected as possible against criminal activity. This will also assure some 8 million Filipino Overseas Contract Workers (OCWs) that their remittance, approximately USD$8 billion annually, are handled in the most secure manner."
NFA, EPCIB sign P
4-B facility
The National Food Authority (NFA) recently inked a
P4 billion Omnibus Credit Facility and Security Agreement with Equitable PCI Bank as part of an P8-billion issue where other participating lenders include Philippine National Bank, Development Bank of the Philippines and the Philippines Veterans Bank. The mandated arranger and trustees for this issue was Land Bank of the Philippines while ONL Consultants, Inc. acted as financial advisor. The success and magnitude of this issue is a statement to the support that the NFA continues to enjoy from its partners both in government and the banking sector. This is recognition of the vital role NFA plays in our society and in life of every Filipino. The proceeds of this loan will help the NFA perform further its mandate to provide adequate grains supply and ensure stable prices for both the consuming public and the farmers.
Megaworld sets dividend payment
Property developer Megaworld Corp said shareholders on record as of Nov. 9, 2005 will be entitled to receive its recently announced 20 percent stock dividend. It has yet to announce the payment date. The 20 percent stock dividend on Megaworld’s common shares is covered by an increase of
P7 billion in authorized capital from P9.2 billion.
The Securities and Exchange Commission (SEC) has approved the application of Aboitiz Transport System (ATS) to increase its authorized capital stock from
P2.45 billion to P4.074 billion. According to ATS, (formerly WG&A Corporation), an amount of P414.12 million has been subscribed and fully paid in the form of shares of stock. The approval was rendered subject to the condition that the shares to be issued will be held in escrow by ATS and shall be released only after proof of transfer of ownership in the name of the transfereecorporation is submitted to the Commission within 30 days from the date of the approval. ATS recently reported a net income of P162.8 million and revenues of P4.4 billion for the first half of the year. The company did not give comparative data. During the second quarter of the year, the company said it registered a fourpercent improvement in its net income to P330 million. Its revenues on the other hand increased by five-percent to P2.6 billion, mainly due to the 51 percent and 11 percent increase in passage and freight volume, respectively. In addition, the growth in earnings was also attributed to the 10 percent and four percent increase in rate per tax and rate per twenty-foot equivalent unit or TEU, respectively. ATS earlier announced that it would sell its two remaining freighters and some of its old containers in a bid to reduce operating costs without sacrificing its overall efficiency. COmpany president Enrique M. Aboitiz Jr. earlier said the company needs to prepare for the continued increases in fuel costs, higher taxes and inflation by selling some of their assets. ATS currently has 18 vessels, 10 of which are Superferries, with two freighters and six ferries.
Globelines nationwide directory out
Globelines introduces the first nationwide directoryfollowing the launch of the first and only toll-free NDD scheme for the entire Philippines. Globelines, Innove’s residential and business brand, comes up with the nationwide telephone directory for all its subscribers. With the theme "One Country, One Call Zone, One Book", this integrated nationwide phone book is the first of its kind in the country. Jose Antonio T. Mapa, Jr., Globelines Marketing Head, said the introduction of "one book" is in line with Innove’s goal to bridge the entire archipelago, to create "one country". Innove has already turned the Philippines into a "one call zone" when it launched its Globelines-to-Globelines Toll-Free NDD Call Promo in March this year. "We want an extensive directory that puts all business establishments and suppliers nationwide in one listing. Aside from this, Globelines subscribers can now easily access the numbers of family and friends throughout the country in one book," Mr. Mapa said.He added, "With Globelines subscribers in the Greater Manila Area, Luzon and Visayas and Mindanao all in one directory, they can maximize their toll-free NDD." The new Globelines nationwide directory also includes the advanced and innovative products and services being offered by Innove, such as Globelines Broadband, Worldpass and Globe1, which are all aimed at enriching a Filipino’s life. Globelines’ new directory is now available to its postpaid residential and business subscribers.
The Fair Trade Alliance (FTA) has commended the endorsement made by the Bureau of Customs for the filing of charges against cement importer, Southern Cross Cement Corp. (SCCC). In a statement, Dr. Rene Ofreneo of the FTA commended the BoC action. In particular, Ofreneo commended BOC Commissioner Alexander M. Arevalo for the endorsement made by the Customs Intelligence and Investigation Service (CIIS). The CIIS has recommended for the filing of criminal charges against SCCC for alleged illegal release of its cement imports, falsification of public documents and making misrepresentations. The FTA said the BOC move will promote-standing crusade against harmful imports and unfair trade practices. This will also promote a level-playing field and strengthen our resolve to nurture our local industries and agriculture, Ofreneo said.(BCM)
Filinvest Land Inc., a property concern, yesterday said it plans to set aside P1.2 billion for capital expenditure in 2006, more or less in line with its allocation for this year. In a disclosure to the stock exchange, the company said the amount, which is still a rough estimate, will be used to finance land development and construction projects. Filinvest Land President Joseph Yap said funds to support next year’s planned capital spending will be internally generated. Early this year, the company said it was looking to allocate between P1 billion and P1.2 billion for capital spending in 2005. Filinvest Land in August posted lower second-quarter earnings after a decline in real estate sales in the period, despite a stronger showing in the first quarter. The company said net profit in the three months to June fell 20 percent on year to P141.9 million from P176.3 million, as real estate sales decreased 24 percent on year to P485.2 million from P641.4 million. Filinvest Land’s second-quarter performance dragged first-half net profit down 3.2 percent on year to P272.4 million from P281.4 million, even as real estate sales for the January-June period improved 15 percent on year to P1.16 billion from P1.01 billion.
ADB okays $1-M health grant
The Asian Development Bank has approved a US$1 million technical assistance (TA) grant to support the government’s health sector reform agenda (HSRA). The HSRA was established in 1999 to improve the efficiency of the country’s public health service delivery system by integrating health care promotion and prevention, expanding referral links, reducing the need for hospitalization, and improving the allocation and use of resources. To support the HSRA, the TA will help the Department of Health to streamline policies and refine monitoring systems, and will assist local government units (LGUs) in initiating and carrying out these reforms. It will help give HSRA a head start in 15 selected provinces by streamlining policies and developing guidelines, concepts, and administrative orders for the health sector in these LGUs. HSRA implementation in up to five of the 15 provinces will also be accelerated by the TA. "The primary challenge facing the country’s health sector is identifying ways to improve the efficiency and effectiveness of health service delivery," says Karima Saleh, an ADB Senior Health Economist. The technical assistance is expected to treamline mechanisms in core referral hospitals to improve performance and improve the quality of public health provision by introducing cost-effective interventions, clinical practice guidelines in health facilities, and piloting programs for public health interventions in LGUs.
Petron complies with BoI rules
Petron Corp. said it has complied with Board of Investment requirements that would entitle the company’s more than P9 billion worth of petrochemical projects to tax incentives and other perks. Earlier, the BoI approved Petron’s application as a new export producer of benzene, toluene and mixed xylene and as a new domestic producer of propylene. The approval was subject to certain terms and conditions, which Petron said it has already complied with. Incentives Petron would be entitled to include income tax holidays and lower duties on imported capital equipment, the company said in a statement. "Our entry into petrochemicals supports our strategy of investing in higher margin businesses which will increase our presence in the regional market," Petron president and chief executive officer Khalid Al-Faddagh said. "Our focus in the next five to 10 years is to develop our refinery assets to capture the unique opportunities presented by developments in the petrochemical industry. Petrochemical demand is projected to grow at an annual pace of 5 percent between 2005 to 2015, and command better regional and local prices than petroleum products, the company said. In the six months to June, Petron’s export sales contributed nearly a third of its P2.31 billion net profit, the bulk of which came from exports of mixed xylene.
PAL starts Beijing flight on Nov. 11
Philippine Airlines (PAL) said it will start regular flights from Manila to Beijing on Nov 11, returning to the Chinese capital after a 16-year hiatus. In a statement, PAL said it will fly to Beijing and back three times a week and will use Airbus A330-300 aircraft for the first two flights, on Nov 11 and 13, to accommodate the expected number of passengers. It will soon after switch to Airbus A320s, which seat 150 passengers. PAL flew to Beijing from 1979 to 1989, when services were suspended for commercial reasons. PAL said Beijing provides a bigger platform from which to access a growing tourism market. Beijing will be the Philippine carrier’s third destination in China. It already flies to Xiamen and Shanghai.
To date, the International Container Terminal Services, Inc. (ICTSI) has invested USD$65 million on its Suape Container Terminal (SCT) in Pernambuco, Brazil and is on track in its goal to make the port achieve hub status. Recently, ICTSI spent some USD$17 million to acquire new container handling equipment and improve the terminal’s infrastructure. Subsidiary Tecon Suape, S.A. (TSSA), manager and operator of the SCT bought two new postPanamax quay cranes (QCs) and two rubber tired gantries (RTGs) manufactured by Shanghai Zhenhua Port Machinery Co. of China. In addition, the company constructed a 30,000-square meter storage area. In all, TSSA has invested USD$65 million since 2001 when it started operating the SCT. Key areas of the investments were infrastructure, equipment, information technology and manpower development. "We are commissioning new container handling equipment at the SCT to better accommodate the surging volumes in the terminal," announced Enrique K. Razon Jr., ICTSI chairman and president. "Our export boxes were up to 20 percent in August compared to the same period last year. Before the end of the year, we are expecting to handle 185,000 TEUs, a 35 percent increase from 2004," he elaborated. "We are also preparing the SCT to be the next hub port not only in Brazil but in the South Atlantic," added Sergio Kano, TSSA chief operating officer. The equipment will be operational in mid-November, making SCT the most modern in Brazil. Even now, "The terminal is fast becoming a hub for the region’s EuropeanLatin American trade
