25-yr T-bond fetches 11.25%

The Bureau of Treasury yesterday sold a treasury bond due Jan. 26, 2031, at a coupon of 11.25 percent, a lower rate than the one awarded when the government sold another 25-year paper in July. The government sold only P3.104 billion of the P4 billion bonds on offer, rejecting some of the tenders to cap the coupon as banks tried to bid the rate up to as high as 11.75 percent, the Bureau of Treasury said. Tenders for the offering totaled P4.429 billion, the Treasury said. When the Treasury last sold a 25-year bond — maturing July 28, 2030 — the coupon was 12.5 percent. Although lower than the rate in July, Tuesday’s 25-year coupon wasn’t significantly lower than the 11.428 percent yield quoted for a paper of the same maturity in the secondary market. Yields were falling earlier this year on ample liquidity and improved prospects on the government’s fiscal performance for this year. Market uncertainty linked to the government’s first-ever offer to swap existing government peso bonds for new benchmark bonds has also spurred upward pressure on yields. The bonds eligible to be swapped for new bonds total P874.4 billion, equal to 41 percent of the P2.116 trillion in peso-denominated government securities, including treasury bills, that were outstanding at the end of October.

BoC hikes target to P200 B

The Bureau of Customs has raised its collection target for the year to P200 billion from original program of P151 billion. BoC Commissioner Napoleon Morales said this amount is the finance department’s internal target, however the official BoC collection program for the year is P192 billion. "We have been enhancing our revenue collections to improve our collections. We have also initiated rationalization programs to make for a smoother trading activities," Morales said. The BoC chief said the bureau is also trying to improve the evaluation and classification of goods and products to get the correct assessments for tariff and duties. From January to December, the tax agency was behind its programmed collection by P11.362 billion or an actual P125.932 billion compared to target of P137.294 billion. The BoC continues to underperform, and is expected to report a shortfall in the next months as well. According to Finance Secretary Margarito B. Teves, BoC’s many problems stem from smuggling as well as lower importation tariff, misclassification of imported products and goods and undervaluation of duties.

C&P undertakes stock split

C&P Homes Inc. said every 10 C&P shares held by each shareholder as of Dec 6, 2005 will be consolidated into one share as a result of the reduction in its authorized capital stock to P500 million from P5 billion. All resulting fractional shares will be dropped, the company said in a statement. It did not say when the reverse share split will take effect. The company earlier said the capital restructuring was intended to wipe out its accumulated deficit.

BDO to list GDRs on LSE

Banco de Oro Universal Bank (BDO) said the 9.1 million Global Depositary Receipts (GDRs) issued last week by its major shareholder, Primebridge Holdings Inc., are to list on the London Stock Exchange (LSE) today. The GDRs, which account for 16.8 percent of BDO’s total outstanding shares, do not hold voting rights, the lender clarified in a statement. Each GDR represents 20 BDO underlying shares. The GDRs allow foreign investors to own shares in BDO and are not covered by the 40 percent foreign ownership limit on Philippine banks. As of end-Sept. 2005, 36.25 percent of BDO, the country’s sixth largest lender by assets, was in the hands of non-Filipino investors. Primebridge Holdings Inc., a 60 percent owned subsidiary of SM Investments Corp., raised 0 million from the secondary offer. As of 10.20 a.m., Banco de Oro was steady at P36.50.

URC profit up 28% at P2.4 B

Universal Robina Corp. (URC) said yesterday it posted net profit of R2.4 billion for the fiscal year to September 2005, up 28 percent from R1.88 billion in the year earlier, with sales registering growth across all business segments. Net sales in URC’s branded consumer foods segment, including the packaging division, increased 16 percent to R23.8 billion. "This increase was primarily due to a 14.8 percent increase in net sales from URC’s international operations, principally in Thailand, Indonesia, Malaysia and China, and a 16.1 percent increase in net sales from URC’s domestic operations," the company said in notes accompanying its results. Net sales in its agroindustrial segment rose 6.1 percent to R3.9 billion, while net sales in its commodity foods segment grew 5.5 percent to R3.2 billion. Operating expenses also expanded, by 14 percent to R5.46 billion, from R4.8 billion in fiscal 2004.

The food arm of conglomerate JG Summit Holdings Inc. is to sell primary and secondary shares totaling 730 million common shares next month, with an international roadshow commencing yesterday. The proceeds will be used to finance the expansion of its operations here and abroad, it said.

ADB extends 0,000 grant

The Asian Development Bank (ADB) has granted a 0,000 technical assistance to help the government improve its debt and risk management. With the country’s large debt obligations and contingent liabilities, the technical assistance will support the government’s fiscal consolidation program by establishing a process for a more effective monitoring and coordination of debt and risk management activities. The size of the country’s stock of debt and contingent liabilities, estimated at P5.8 trillion as of end-2003 or 137.5 percent of the country’s GDP, makes prudent debt and risk management an essential component of any successful fiscal consolidation strategy for the government. The assistance will develop a mechanism to monitor debt and contingent liabilities as well as a system to manage risk. This will allow the government to identify, evaluate, quantify, and provide appropriate budget cover for debt obligations and risk exposure from contingent liabilities. It will also boost the capacity of all core agencies and offices engaged in debt and risk management work, including the Bureau of Treasury, Corporate Affairs Group, and International Finance Group of the Department of Finance, as well as the National Economic Development Authority. "ADB’s Country Strategy and Program for the Philippines emphasizes fiscal consolidation as the highest priority goal of ADB support," says William Bikales, an ADB Principal Economist.

EMB reversion to staff bureau opoosed

For the Philippine Chamber of Commerce and Industry (PCCI), the Environmental Management Bureau (EMB) should be maintained as a line bureau under the Department of Environment and Natural Resources (DENR). According to PCCI President Donald Dee, "Industries will comply more effectively with environmental laws and regulations if the EMB remains a line bureau under the DENR." The current structure of EMB, he added "reflect the most cost efficient situation for the EMB. This view was contained in a formal communication sent by PCCI to DENR Secretary Michael Defensor recently. The PCCI further said that it is confident that DENR will seriously consider this given the current initiative of the Arroyo administration for the rationalization of government organization. Reverting the EMB to a staff bureau under DENR will add more bureaucratic layers to the already burdened economy without adding value to environmental protection nor to cost savings for the government. The country’s drive for sustained economic growth is often hampered by unnecessary bureaucracy in most the government instrumentalities. In the case of functions of the DENR, Republic Act 8749, or the Philippine Clean Air Act, converted the EMB from a staff into a line bureau.

Dnata Inc. has become the first ground handling agent to receive ISO 9001:2000 quality certification for passenger, ramp handling and ground equipment maintenance services at Ninoy Aquino International Airport (NAIA) in Manila, the Philippines’ primary gateway. Dnata Inc., the Philippines subsidiary operation of Dnata, the Dubaibased industry-leading airport services company, provides ground handling services for four airline customers at NAIA. To mark the ISO achievement, a senior Dnata Inc. management delegation led by Ismail Ali Albanna, Chairman of Dnata Inc. & Executive Vice President of Dnata, recently visited the office of Alfonso Cusi, General Manager of Manila International Airport Authority (MIAA), operator of NAIA. Cusi praised Dnata’s achievement in gaining ISO certification as testament to its high standard of services, adding: "MIAA and NAIA will greatly benefit from the raising of quality standards resulting from this certification." Albanna said: "This certification further demonstrates our dedication to providing international quality and expertise to MIAA and NAIA. We are delighted to be part of the on-going development in ground handling services taking place here." Dnata began its Philippines operation at NAIA as a joint venture in 1999. Dnata Inc. is now 100 per cent owned by Dnata, part of Emirates Group, and the benchmark in Middle East airport ground operations. Dnata is the sole ground and passenger handling agent at Dubai International Airport, served by more than 110 airlines.

Kaitech S.p.A, a leading global company in information & communication technology and card management industries, has announced that its subsidiary Matica has signed an important joint venture with Namiraka Corporation, a local company specializing in the distribution of cards personalization and issuance systems. Matica, which is based in Italy, is a leader in the production of systems for cards personalization and card issuing. The agreement will establish a joint venture, named Matica Asia. The new company will be based in Southeast Asia in order to provide card personalization systems, technical and logistic support, directly to Asian customers from a local branch. The joint venture agreement was signed in New York City between Sandro Camilleri, Matica chairman, and Minda A. Garcia, chairperson of Namiraka Corporation, and concurrently vice chairperson/chief financial officer of Mega Group. The deal aims to establish a new branch in Singapore and in Hong Kong or Shanghai, to develop, promote and offer card systems and services directly to the Asian market. Mega Group is a Philippine-based conglomerate of 36 leading Information Technology (IT) companies, specializing in high-tech systems and services including card personalization. The company provides quality ICT services to its clients not only in Asia but also in countries such as Australia, USA, Middle East and Eastern Europe.

RP buys Brazilian wheat

SINGAPORE, Jan. 22 (Reuters) — The Philippines, following in the footsteps of Vietnam, has bought about 40,000 tonnes of Brazilian feed wheat and South American suppliers may now be eyeing the South Korean market, a US industry official said on Tuesday. "Some deals for Brazilian feed wheat have been sealed in Asia," said Mark Samson, vice president for South Asia of the US Wheat Associates. "The Philippines has bought one cargo for immediate shipment." Traders said the Philippines was probably the second Asian nation to buy feed wheat from Brazil, which is exporting the grain for the first time since 2004. The sale to Vietnam was sealed at around 0-5 a tonne, including cost and freight, for March shipment. Traders said the Philippine deal was also done close to that level.

PNB Gen earns P125.2 M

Philippine National Bank’s wholly-owned non-life insurance unit PNB General Insurers Co. Inc. posted net profit of P125.2 million last year, up 11 percent from P112.9 million in 2004. In a statement, PNB Gen’s president and chief executive officer Jose Zuniga said the better profit performance was due to higher premium production and net underwriting margins. He said the company bucked the trend in the non-life insurance industry, which saw a continued drop in premium rates as a result of competition. PNB Gen ranks fifth in term of profitability among 95 licensed non-life insurance firms in the country.

Universal Robina Corp (URC) will announce on Monday the price range for its primary and secondary stock offering, the stock exchange announced on its website. URC, the food arm of conglomerate JG Summit Holdings Inc., will sell about 730 million common shares next month, of which 95 pct will be offered to international investors. The proceeds will be used to finance expansion here and abroad. URC had previously said the final offer price would be in a range of plus or minus 10 pct of the prevailing market price during the offering. The final offer price will be known by Feb 6.

Colgate sells detergent business

SAN FRANCISCO (XFN-Asia) — Colgate-Palmolive Co said it has sold its Southeast Asian heavy-duty laundry detergent brands to Procter & Gamble Co. Colgate said the Procter & Gamble transaction, touching brands marketed in Thailand, Malaysia, Singapore and Hong Kong, includes the sale of Fab, Trojan, Dynamo and Paic. Because of the sale, two detergent dedicated factories will be closed or modified, Colgate said. Colgate said it expects the one-time net gain resulting from the Dec 31 transaction will be fully offset by fourth-quarter restructuring charges under the company’s 2004 plan. Further financial terms were not disclosed. "This sale is part of Colgate’s ongoing strategy to de-emphasize and eliminate low-margin portions of the business while focusing on our high-margin, fast-growing oral, personal and pet care businesses," Reuben Mark, Colgate’s chairman and chief executive, said in a statement. Simplifying the company’s portfolio will increase gross profit margin in the Asia/African division and will enable increased focus on the other businesses, he said.

ADB okays 0-M China loan

BEIJING (XFN-Asia) — The Asian Development Bank (ADB) said it has approved a 0 million loan for wastewater treatment and water quality improvement in the Hai river basin in central China’s province of Henan. The loan will fund construction of facilities to collect and treat wastewater and to deliver clean water to 15 cities around the highly polluted Hai river basin, the ADB said in a statement. The project will also promote institutional and financial reforms and enhanced management, the ADB added. The Hai river basin, one of the three most polluted river systems in China, has been severely affected by domestic and industrial wastewater, the ADB said. Environmental infrastructure has failed to keep up with the region’s rapidly growing economy, and only 34 percent of urban wastewater in the area is being treated, despite water shortages. The project will build sewers, pump stations and treatment centers to increase collection and treatment of urban wastewater to more than 70 percent, the ADB said. The total project cost is about 0 million, half of which will be met by the ADB loan. Local bank co-financing will provide .2 million and central and local government funds will be used for the remaining .8 million. The project should be finished by the end of 2010, the bank said.

TAIPEI (XFN-Asia) — Over eighty percent of Taiwan’s manufacturers that invested abroad last year put their money in China, a government survey shows. Of all manufacturers who invested overseas in 2005, 81.18 percent chose China as a destination, up from 72.90 percent in 2002, according to a survey conducted by the Ministry of Economic Affairs (MoEA). Respondents were allowed to make multiple choices in the survey as their investments might be in more than one location, the MoEA said. In 2005, some 17.01 percent of outbound manufacturers invested in the US, little changed from 17.14 percent in 2002. Another 15.42 percent invested in the ASEAN (Association of Southeast Asian Nations) region, down from 18.62 percent three years earlier.