The Bangko Sentral ng Pilipinas said the International Accounting Standards (IAS) has a minimal impact on the banking industry’s capital adequacy ratio (CAR), which is a measure of a bank’s solvency. BSP Governor Amando M. Tetangco Jr. said the Monetary Board has studied the IAS impact on CAR, both on consolidated and solo basis. BSP Deputy Governor Nestor A. Espenilla Jr. told reporters that the findings are surprising. "We’ve always expected that there will be a reduction in their retained earnings (banks) but I am presently surprised that despite (IAS) it’s well within expectations." Implementing the IAS requires new computer systems and also the re-training of bank personnel. Full implementation of the IAS also affect mark-to-market requirements of the banks especially its investments in bonds and other debt instruments or IBODI. Once implemented, banks would be prohibited from using their IBODI for two years if a portion or health to maturity period has been tainted.

The Monetary Board (MB) of the Bangko Sentral ng Pilipinas has approved World Bank’s International Finance Corp.’s (IFC) million loan to Manila Water Inc. BSP said the loan has a maturity of 10 years plus three years grace period. The loan will be used to partially finance the capital expenditure of the water firm. Manila Water is owned by the Ayala Group. It services Metro Manila’s north zone while Maynilad has the west zone.

The government has scheduled to sell National Power Corp.’s 360-megawatt Magat hydroelectric power plant in an auction Dec. 14, the government’s Power Sector Assets and Liabilities Management Corp. (PSALM) said yesterday. The Magat power complex in the northern province of Isabela is the Philippines’ largest hydroelectric power plant. PSALM said it has released to bidders last week the final version of the asset purchase agreement and land lease agreement for the sale of the plant. Under the asset purchase agreement, the winning bidder is required to make a payment equivalent to at least 40 percent of the purchase price on or before the closing date, while the balance will be paid in 14 semi-annual payments at an interest of 12 percent per annum. The winner is also required to post a performance bond equivalent to 2 percent of the purchase price. Four investors are expected to participate at the Dec. 14 bidding. The auction comes after last September’s sale of another hydroelectric facility, the 112-MW Pantabangan-Masiway power complex in Nueva Ecija province.

HONG KONG (XFN–Asia) — Smart Communications Inc., the mobile phone subsidiary of Philippine Long Distance Telephone Co. Ltd. (PLDT), said it is in talks with Japan’s NTT DoCoMo Inc. for wireless content to facilitate the rollout of Smart’s third-generation (3G) services in the Philippines. "We are currently in talks with NTT DoCoMo over the provision of wireless content for 3G," Smart Communications’ wholesale business group head Roger Quevedo told XFNAsia on the sidelines of the ITU Telecom World trade show here. He said the success of Smart’s alliance with the Japanese mobile phone company would depend on the readiness of the Philippine market for handsets using NTT DoCoMo’s imode system, the world’s most widely used wireless Internet-access technology. "We are still waiting for Nokia Corp.’s handset using imode," said Quevedo, who noted that handsets could be available as early as the third quarter of next year. He added that among other issues hindering the progress of 3G rollout in the Philippines is the price of handsets.

AB Mauri, a division of Associated British Foods Plc (ABF), a United Kingdom-listed public company, announced the complete acquisition of Philippines-based Pilmico Mauri Foods Corp., the leading manufacturer of yeast in that country. In the coming months, the company will carry its new name, AB Mauri Philippines. AB Mauri is ABF’s international yeast and bakery ingredients division. AB Mauri’s geographic scope is impressive, with a global presence in bakers’ yeast via 40 plants in 25 countries with annual turnover in excess of US0 million. Garth Weston, President AB Mauri China East Asia Pacific, said "The acquisition of The Philippines business further strengthens AB MAURI’S leading yeast manufacturer and supplier status in the China Asia Pacific region.

The new AB Mauri Philippines will be at the forefront of the yeast and bakery ingredients industry in within the Philippines by providing outstanding customer service backed up by a high level of investment in research and development and technology. We are well placed to grow and develop our future business in partnership with our customers and distributors." PilmicoMauri Foods Corporation was established in 1995 after a joint venture between PILMICO Food Corporation and the premier yeast producer in the world, AB Mauri.