The weighted average rate appreciated to P44.407 from P44.768. Total volume amounted to $ 845 million.

T-bill yields dip; 91-day at 3.758%

Average yields of Treasury bills eased at an auction by the Bureau of Treasury yesterday, with help from the government’s rejection of some tenders for the three-month and one- year terms. The results were in line with market expectations following a central bank interest rate cut last week. The average yield on 91-day T-bills fell a touch to 3.758 percent from 3.759 percent, while the 364-day average softened to 5.628 percent from 5.643 percent. Had the auction committee accepted all bids, the average yield of the three-month paper would have risen to 3.866 percent and the one-year average to 5.740 percent. The yield on 182-day paper eased to 4.812 percent from 4.832 percent. Tenders in the P6-billion treasury bill auction totalled P10.65 billion. Only P4.49-billion worth of tenders were accepted. Deputy National Treasurer Eduardo Mendiola said both the National Treasury and the Bangko Sentral ng Pilipinas were expecting a decline of around 20 basis points in treasury bill yields after the central bank’s 25-basis point reduction in policy rates.

Land Bank of the Philippines will push through with its long planned $ 100 million hybrid tier bond issue in November or December, the bank’s Senior Executive Vice President Alfonso Cruz said yesterday. The state-owned bank is now awaiting the approval of the central bank, he added. A hybrid tier one bond is a perpetual unsecured subordinated debt, which is callable after 10 years. If the borrower opts not to repay the debt, the bonds will pay a higher coupon. "We’re coming out with a $ 100 million hybrid tier one. This has been planned a long time ago," Cruz told Dow Jones Newswires in a mobile phone text message. "It is for capital adequacy buildup." Landbank officials have discussed issuing such a bond since early this year. He said the issue will be made in November or December "if market conditions permit." Landbank last year sold a 0 million, 10-year bond to boost its capital. The Lower Tier II bond, which marked Landbank’s return to the offshore debt market after a nine-year break, was sold at par to yield 7.25 percent.

NTC rakes in P1.98 B in income

The National Telecommunications Commission’s (NTC) has hauled a total of P1.98 billion in fees and charges as of October 1, exceeding its P1.8 billion target for the period, announced newly installed NTC Commissioner Ruel V. Canobas. The Commission is expecting to collect some P200 million more by yearend, raising its target 2007 collection to P2.180 billion. The NTC Central Office accounted for the bulk of revenues with P1,572,065,330.97. NCR accounted for P91,986,420.67; Region 3, P52,315,520.87; Region 4, P49,215,253.57; Region 1, P36,357,702.65 and Region 7, P29,286,053.80. The NTC primarily derives its income from Spectrum User’s Fees (SUF), Supervision and Regulatory Fees (SRF), and from the payment of the various licenses and permits needed to operate a telephone company (landline and cellular), a TV, radio or cable company. The Commission is still thinking of ways to increase its revenues according to Canobas. Regulators seek to encourage telecommunications (including broadband) connectivity in the unserved and underserved areas (4th, 5th and 6th class municipalities) to increase traffic and businesses under NTC regulation. (EVA)

The Securities and Exchange Commission (SEC) yesterday approved the proposed capital hike of Sy-owned Shoemart, Inc. Shoemart, which is 65 percent owned by SM Investments Corporation (SMIC), proposed to increase its authorized capital stock from P500 million to P1 billion. The company said 25 percent or P125 million of the proposed increase has been subscribed and that 25 percent or P31.25 million of the subscribed amount has already been paid-in cash by existing shareholders. Subscribing to the increase in capital are SMIC, which acquired an additional P81.14-million worth of shares and several individual shareholders, who are also members of the Sy family. In an earlier board resolution, SMIC, the holding firm of the Sy family, designated Shoemart as the "main company for property development efforts" of the entire SM group. SMIC told the Philippine Stock Exchange (PSE) the move would create a more efficient and recognizable brand "that investors can easily understand." (AMM)