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Philippine-China trade and conference fair set on June

Roy — Sun, 01 May 2011 08:56:27 +0000

The China Council for the Promotion of International Trade (CCPIT)-Guangzhou and Philippine Chamber of Commerce and Industry (PCCI) recently signed a cooperation agreement to co-organize the Manila-Guangzhou Trade and Investment Conference slated to be held on June.

The event, which is aimed to further boost the Philippine-China trade and investment relations, is expected to gather around 500 business leaders, industry captains and government officials from both countries.

Part of the activities of the conference will be a product promotion through a virtual trade fair which would feature top export products of China, and business matching activities. There will also be office and factory visits to be arranged for the estimated 200 businesses and industry leaders comprising the Chinese delegation.

PCCI President Dr. Francis Chua said, “The Philippines and Chinese’ economies are open to mutual cooperation in trade and investments. While initially, the idea behind the conference is to promote Chinese-manufactured products for export to the country, we are making it a point to ensure that local enterprises and industries get maximum exposure and gain from the visit of top-level Chinese businessmen. That is why we are arranging business meetings and site visitations on the sidelines of the conference.”

China is the country’s top trading partner with export receipts reaching US$51.39 billion in 2010. Data from the National Statistic Office (NSO) show that the combined markets of China and Hong Kong in 2010 accounted for about 19.52 percent of the Philippines’ total exports.

Guangzhou Vice President of CCPIT Madame Li San Jian said, “China is a very big market. With increasing domestic demand and infrastructure development, Philippine export products such as mineral-and-metal-based resources as well as processed and fresh food products can easily gain entry into the Chinese market.”

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Trans-Asia stock rights offer approved by PSE

Roy — Sat, 30 Apr 2011 06:19:03 +0000

The Trans-Asia Oil and Energy Development Corp.’s plan to raise fresh fund for power generation via stock rights offer was approved by the Philippine Stock Exchange (PSE).

The Phinma-led company got the nod from PSE when the latter posted a memorandum on Friday saying that its board has approved the listing of 1.16billion additional common shares to be issued by Trans-Asia to cover an equity offering to all shareholders. Each eligible shareholder is entitled to subscribe to seven right shares for every 10 existing shares held as of record date of May 18.

The offer price of P1 per share represents a discount of 21.9 percent on the market price of Trans-Asia as of March 21, which was the date the stock rights offer was approved by the board of Trans-Asia.

The net proceeds from the stock rights offer, based on the memorandum, would be used to partly finance Trans-Asia’s equity investment in the planned 135-megawatt clean coal plant in Calaca, Batangas and its investment in Maibarara geothermal power plant.

Trans-Asia tapped on the services of ATR KimEng Capital Partner Inc. to be the underwriter of the stock rights offering which would run from May 30 to June 3 this year.

The Phinma group, which is composed of Philippine Investments Management Inc. and Phinma Corp., the principal stockholders of Trans-Asia, pledged to subscribe to any shares not taken up by other eligible shareholders.

Trans-Asia was originally into petroleum exploration, and later diversified to other industries like cement manufacturing, coal trading and power generation. This year, the company expects to generate a net profit of P482.23 million, which is a considerable increase from the P14.74 million it posted a year ago. Revenue is projected to rise to P1.7 billion from P894 million in 2010.

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Philippine seeks investment-grade rating

Roy — Fri, 29 Apr 2011 04:51:12 +0000

The Philippine government believes that the country deserves a better credit rating, that is why it is wooing the three major credit rating agencies for an upgrade in its credit scores, amid the improving fiscal situation and external liquidity.

The three credit rating agencies – Moody’s Investors Service, Fitch Ratings, and Standard & Poor’s (S&P), were met separately by finance secretary Cesar Purisima when he went to New York and Washington D.C. recently.

Purisima presented fiscal and monetary data on the Philippines that he believes would encourage them to review and increase the country’s credit scores. Philippines is rated three notches below investment grade by Moody’s and two notches below by Fitch and S&P.

He also said the country has a credit score lower than Indonesia yet the fiscal situations of the two countries are just the same. Purisima also cited the country’s declining debt-to GDP [gross domestic product] ratio and deficit-to-GDP ratio. “Our debt rations and deficit are declining and our financial sector is well managed, and so we deserve better ratings,” he said.

During the meeting with the credit rating firms, Purisima said the three did not give a hint if they would change the country’s credit ratings soon, but he express optimism that the Philippines would finally get an investment-grade credit rating before the end of Aquino’s term.

The finance chief said the country has been able to borrow from the international markets at interest rates comparable to those applied to financing initiatives by investment-grade rated countries. Still, he stressed that getting a credit rating upgrade would be important in getting more foreign investments for the Philippines. “Much more funds will come in to the Philippines if we get investment grade,” Purisima said. He noted that some big-ticket business ventures have been using credit ratings in their decision-making.

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San Miguel eyeing NAIA 3

Roy — Mon, 25 Apr 2011 14:41:08 +0000

San Miguel Corp. said it is interested in taking over the operations of the Ninoy Aquino International Airport Terminal (NAIA) 3. San Miguel said it will join in the bidding for NAIA 3 should the government open it for privatization.

In its disclosure to the Philippine Stock Exchange, the company stated, “The company may participate in the privatization of the NAIA 3 in the event the government conducts a public bidding for the said infrastructure-related project.” It added, “As we have previously disclosed to the exchange, the company intends to actively pursue the Public-Private Partnership (PPP) programs initiated by the government.”

The conglomerate has already sent earlier an offer to privatize the NAIA 3, through unit Philco Aero Inc., its joint venture with Korean partners. San Miguel directed its privatization plan to President Aquino and the Manila International Airport Authority (MIAA).

The company now effectively adds NAIA to the list of airport investment it wants. San Miguel has a stake in the developer of Caticlan airport off the famous Boracay Island and has a pending offer to operate the Terminal 2 of the Diosdado Macapagal International Airport in Clark, Pampanga.

San Miguel has been effectively diversifying away from its core food and beverage business, and into heavy and high-growth sectors including telecommunications, oil refinery, power and infrastructure. The company last week sold $900 million worth of equity and convertible bonds to help fund infrastructure investments.

Meanwhile, NAIA 3 was expected to open in 2002 but was mothballed for 6 years due to a legal dispute with the Philippine International Airport Terminal Co. (Piatco), the consortium that built the terminal. The Supreme Court, however, cancelled Piatco’s contract in 2003, resulting in arbitration proceedings filed by Piatco and German shareholder Fraport AG, in Singapore and the US.

The International Center for Settlement of Investment Disputes ruling dismissed Fraport’s arbitration bid in 2007. But the said decision was reversed last year which prompted Fraport to revive its $425-million compensation claim against the Philippine government.

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DTI’s trade mission to India produces $42 M investment pledges

Roy — Fri, 22 Apr 2011 15:59:24 +0000

The Department of Trade and Industry (DTI) reported that their recent trade and investment mission in India have generated new investment pledges worth $42 million. Trade Secretary Gregory Domingo said they were from three energy projects and a pharmaceutical packaging ventures.

The Philippine delegates, led by Domingo, attended the recent ASEAN-India Business Fair and Conclave held in New Delhi in its bid to penetrate India’s trillion dollar market. Other members of the Philippine mission were the Department of Agriculture, Department of Tourism, Department of Foreign Affairs and the Philippine India Business Council of the Philippine Chamber of Commerce and Industry.

Domingo said he was able to convince Indian businessmen to invest in the Philippines during his first official trip, and the trade department’s first mission to India. “India is emerging as a source of foreign direct investments (FDIs) for the Philippines. Apart from BPO companies which are directed by their principals to open delivery centers in the Philippines, more Indian companies are continuing to realize the potential of the Philippines as a gateway to the lucrative ASEAN market,” he said.

The investment pledges acquired by DTI include two 20-megawatt stand-alone liquefied natural gas (LNG) power plants in Tawi-Tawi and in Cagayan as well as a 1.5-megawatt mini hydro electric power project in Abra.

According to Domingo, the trade department is working on several initiatives for Indian businessmen locating in the country which include the improved business registration procedures; and relaxed visa norms for senior executives of IT and BPO companies. Add to this, he also announced the recently inaugurated direct flights from Manila to New Delhi of the Philippine Airlines (PAL).

During their trip, Domingo also witnessed the signing of a memorandum of understanding (MOUs) between the Associated Chamber of Commerce in India (ASSOCHAM) and the Philippine Chamber of Commerce and Industry, and between the Federation of Indian Mining Industries and the Philippine Chamber of Mining Industries represented by Philip Romualdez, to promote trade, investments, and economic relations between India and the Philippines.

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New mutual fund unit from Philam group

Roy — Mon, 28 Mar 2011 02:36:24 +0000

The Pami Asia Balanced Fund, the fund management unit of the Philam group, has been given license by the Securities and Exchange Commission to operate as an open-end investment company and to register its entire authorized capital stock consisting of eight million common shares at a par value of P0.45 each. The new mutual fund will invest in a mix of bonds and stocks across Asian emerging markets.

Gina Goco-Morales, the executive vice president of Philam Asset Management Inc. said, “It’s a new fund. Pami Asia Balanced Fund invests 50 percent in Asian equities and 50 percent in Asian fixed income.”

The seed capital for the new fund was provided by Pami. It is also the investment manager and principal distributor of the said new fund. In their documents submitted, Pami will be entering into a sub-management agreement with Amundi Singapore Ltd., which a specialist in global asset management. The new local mutual fund will seek to ensure long-terms growth of the invested funds. This it will do by tapping into the growth potential of Asia. The new investment fund is meant for investors who are looking for “moderate” risk investments. “The fund is positioned as an alternative to other mutual funds and balanced funds that are invested in Philippine securities,” according to the regulatory filing.

The fund’s aim is to provide investors with income and long-term capital appreciation through investment in equities, equity-related securities and debt securities of issuers across Asia-Pacific outside of Japan. The fund specifically aims to cover issuers across China, Hong Kong, India, Indonesia, Korea, Australia, Malaysia, New Zealand, Thailand, Taiwan, Singapore and the Philippines.

The offering price is the net asset value per share plus an entry fee or sales load together with applicable taxes. Minimum investment is $5,000 and additional purchase is possible for at least $1,000

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PSE to launch Maharlika Board by September 2011

Roy — Wed, 23 Mar 2011 18:54:46 +0000

“Maharlika Board” or a separate trading board for the Philippines companies that comply with high governance standards is being planned by the Philippine Stock Exchange (PSE). If plans push through, the “Maharlika Board,” which will be the first of its kind in Asia, will start on September this year. It is part of the government’s program to promote the Philippines as a prime investment destination.

PSE’s corporate governance head Argel Astudillo said, “This board will only include listed companies that achieve the highest standard of corporate governance.” Companies, however, will have to increase their public floats to as much as 30 percent to be included in the Maharlika Board, he added. In addition to that, they will also be required to have at least seven independent directors. Three of these directors must be independent, who will be voted by minority investors.

Aside from the prestige of being included in the “exclusive” trading board, companies that will be listed in the Maharlika Board will receive discounts on listing and maintenance fees paid to the PSE. Astudillo also said that tax perks and other financial incentives may also be given to them.

“We are looking at a public launch of the Maharlika Board in September this year,” Astudillo said. “By the time we launch it, we may or may not have companies listed… but we hope have received indications,” he added.

The Maharlika Board, according to Astudillo, will be loosely patterned after Brazil’s “Nove Mercado,” a board for that country’s most transparent listed firms. He noted a report based on foreign studies that showed investors value companies promoting good corporate governance higher by 20 to 25 percent compared to other firms.

“We want to rebrand our country to show the world that we are serious about focusing on good corporate governance,” Astudillo said. He said the country’s negative image as an investment destination has burdened Philippine financial markets. Controversies such as the 1999 stock manipulation case and insider trading involving listed firm BW resources were among those Astudillo cited.

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Canlaon to put up P5.2B bioethanol plant in Negros Occidental

Roy — Thu, 17 Mar 2011 21:32:25 +0000

The Canlaon Alco Green Industrial Corporation will be investing P5.192 billion for a bioethanol plant in Bago, Negros Occidental. And because of its multi-million investment in the bioethanol project, Canlaon will be receiving six years worth of income tax holiday (ITH), according to Lucita P. Reyes, executive director of the Board of Investments (BOI).

Reyes said that the bioethanol project is one their banner investments for the first two months of the years, which helped propel their 185 percent investment growth for January to February, compared to the same period last year. BOI investments stood at P28.237 billion.

Canlaon applied for the incentives from the BOI and it qualified for the ITH under the Investment Priorities Plan (IPP) of the government. The bioethanol plant is expected to be operational by December 2012 and is projected to produce 52.2 million liters of bioethanol per year.

Reyes said that despite the Canlaon’s investment, the country still lacks bioethanol. She said that by 2012, the demands for bioethanol locally will be 849 million liters. At present, there seven bioethanol plants operating with their 2012 productions expected to reach only 193 million liters. There will still be a deficit even with the 52.2 million of Canlaon’s. “We still need to encourage more investments in bioethanol,” she added. The Canlaon plant will be supplying the bioethanol to local petrol companies, according to Reyes.

She also said that aside from the bioethanol, the production site will have a byproduct of purified carbon dioxide. This will be sold to beverage companies. The project will employ 160 workers, excluding the farms.

The Sugar Regulatory Authority (SRA) has already certified the project. The certification was necessary to ensure that the proposed plantation site is not used for food. Canlaon, at present, has a growing agreement with the farmers of Bago, which covers 2,300 hectares of land capable of producing 161,000 metric tons of raw sugar cane per year.

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Ayala to offer 10-yr P10-billion bonds to public

Roy — Wed, 16 Mar 2011 20:18:40 +0000

Conglomerate Ayala Corp. is planning to sell as much as P10-billion in 10-year innovative bonds via public offering to beef up its cash position. In its disclosure to the Philippine Stock Exchange, Ayala plans to issue at least P6 billion “multiple puttable” retail bonds with an option to increase by P4 billion in case of strong demand.

By being “puttable,” the investment bonds allow the investors to sell their holdings back to Ayala before the bonds reach maturity. This option is given on the fifth and eight year of the investment term. On the fifth year, the “put” option is for the 10-20 percent of the principal amount of the bonds held, while that on the eight year is for up to 80-100 percent of the principal amount of the bonds held.

The bonds will be issued in scripless form in denominations of at least P50,000 each and in multiples of P10,000 thereafter, and will be offered to retail investors. They will be issued at 100 percent of face value. BPI Capital Corp. was chosen by Ayala as the issue manager for the retail bonds whose interest rate will be based on a spread over applicable PDST-R2 benchmark.

Similar “puttable” bonds were issued by Ayala in April last year, its first foray into domestic bond in three years, although their issuance for this year will have a longer term. Last year, it were seven-year bonds with a one-time put option on the fifth year. It was a first in Philippines then that a peso-denominated investment instrument with a “put” option was offered to the public.

Ayala aims to beef up its net cash position, which stood at P29 billion as of the end of 2010, with the proceeds of the bonds. The funds then can be deployed to expand existing businesses, acquire new ones or buy back shares from the stock market if opportunities arise. The company also announced that it has set aside a group-wide capex budget of P79 billion which is 21 percent higher than what it earmarked a year ago.

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Why time deposit is still a viable investment option

Roy — Mon, 28 Feb 2011 14:44:59 +0000

Jesus Vicente-Garcia, executive vice-president and branch banking head of Philippine Veterans Bank, believes that time deposit remains to be one of the simplest, safest and most rewarding investments . Despite the many investment options available in banks, Garcia explained that a time deposit is a sound option to grow one’s investment because it enjoys higher interest rates.

Compared to a regular savings account, a time deposit is assured of a maximized return. Garcia illustrated a P500,000 investments on Veterans Bank’s Maxi-Return Time Deposit as an example. In their time deposit, a monthly compounding interest rate of six percent will net for the depositor an interest amount of about P174,000 at the end of five years. The actual interest amount will depend on the date the time deposit was opened.

The bank EVP was quick to add that the interest rate isn’t the only reason why a time deposit is a viable option. He said, “Aside from the high interest rate that you’ll get on your time deposit, it’s also a safe way to grow your money. Your investment is intact from the start as a time deposit is not driven by market factors like investment in stocks, or in mutual funds, or UITFs (unit investment trust fund).”

Garcia also added that time deposits are covered by the Philippine Deposit Insurance Corp. (PDIC) guarantee. Being a traditional bank product, they guaranteed up to P500,000 per depositor. UITFs are not covered by PDIC guarantee.

Short term time deposits are advisable for entrepreneurs who would like to get higher interest rates than a regular savings account, yet allow them flexibility to have the funds available should they need them in their business. A long term time deposit, on the other hand, is best for those who can afford to have money tied up for a long time, and without immediate need. Longer terms obviously would higher interest rates.

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World Bank acknowledges Philippine’s growth potential

Roy — Sat, 26 Feb 2011 08:49:20 +0000

Based on World Bank’s (WB) assessment, the Philippines have the potential of generating more investment this year, as well as next year. The World Bank cited recent reports about improving business sentiments that could fuel economic growth faster than its previous estimates. It has set its growth forecast for the Philippines at 5 percent this year and 5.4 percent for 2012, adding that these figures could be exceeded if the improving sentiment would translate to actual investments.

Bert Hofman, country director of the World Bank for the Philippines, stated in their latest “Philippines Quarterly Update,” that “Strong private investment in the fourth quarter of 2010 and bullish business confidence are encouraging signs that the economy can attract investments needed to boost potential growth and generate more jobs.” He also said that the county was poised to generate more income from exports its continuing efforts to diversify its markets.

The Philippine government, however, has a projection of 7 to 8 percent growth for 2011 and 2012, respectively. The country’s actual growth last year was 7.3 percent. The World Bank said that the lower growth rate it gave for this year and 2012 was because they considered that the robust growth last year was partly due to base effects, as the economy had slowed down in 2009. But it said the country has a chance to grow faster than projected, in its latest quarterly report.

Eric Le Borgne, World Bank’s chief economist for the Philippines, said, “Government efforts to improve the investment climate, tackle corruption and weak governance, along with more credit rating upgrades could boost investor confidence and attract more private investments in the next few years.”

The World Bank also cited business process outsourcing (BPO) and tourism, as the two industries that could generate more investments and therefore register the fastest growth this year. The bank’s report also stated the risks that could affect the country’s ability to grow faster, these are extremely bad weather condition which could disrupt food supply, and increases in the prices of oil and other commodities in the world market.

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Ayala Land mulls sale of Homestarter bonds this year

Roy — Sat, 26 Feb 2011 02:24:24 +0000

Ayala Land Inc. (ALI) is planning to offer P2.02 billion worth of investment bonds, which the company called “Homestarter,” this May. The property giant would like to offer the bonds to retail investors who would like to put up seed money to buy residential units. This will be the fourth time that ALI will be offering the Homestarter bonds and also the largest since they offered it in 2006.

ALI chief finance officer Jaime Ysmael said, “The increased size is intended to support the significant increase in residential launches this year. The bonds are intended to support our sales effort by providing an opportunity for prospective buyers to save up on the equity required for the purchase of residential units.” He added that the bonds will be sold through a general public offering to retail investors.

The company tagged BPI Capital Corp and SB Capital to underwrite the offering, as stated in their disclosure to the Philippine Stock Exchange. The investment instruments will be price d at 100 percent of face value and will mature three years from initial issue date.

ALI will use the proceeds from the sale of bonds for their general corporate purposes. The company has already set aside P33 billion in capital outlays for 2011, the largest capital spending to be committed by a company in a single year.

The Ayala Land Homestarter Bonds were created to boost residential sales while allowing the company to raise fresh funds. With these instruments, investors are required to set aside at least P5,000 a month for the next three years, or a total of P180,000. During the investment period, a bondholder may, at any time, select an Ayala-developed property under various brands, such as the Ayala Land Premier, the Alveo, Avida property or its new brand of affordable housing called Amaia, and apply the bond as payment.

If bondholders forego of the option to use the bonds as payment for properties, cash plus the interest earned will be paid on the maturity date of the instruments.

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More employment opportunities in Clark this year

Roy — Thu, 24 Feb 2011 05:26:05 +0000

The Clark Development Corporation (CDC) said that it expects the employment at the Clark Freeport Zone to surge this year as operations of new investments starts. The CDC said as early as the end of January 2011, the number of workers in Clark had already grown by an annual 4.7% already. The Freeport Zone administrator said that workers inside Clark’s 453 locators reached 60,322 as of January 31 versus the 57,602 they have in the same period last year.

The CDC said that this workforce is composed mostly of employees in the electronics assembly industries, the business process outsourcing (BPO) sector, and from other manufacturing industries. The state agency said at least 7,000 more jobs are expected to be generated in the near future because of several projects coming this year.

Some of these projects include the “multi-billion dollar” investment of Phoenix Semiconductor of the Philippines, the expansion of Yokohama Tire Philippines, Inc., and of course, more investments from the business process outsourcing sector.

The CDC broke down the figure as follows: 3,000 workers would be needed by Phoenix Semiconductor; Yokohama Tire would need 1,500; and BPO locators like Cyber City Teleservices, Inc., Sutherland Philippines, Inc. and Global Streaming, would hiring at least 2,500 more additional employees. “The improvement in employment in Clark is an indication that the Freeport Zone is becoming an investment haven for multi-national firms,” the Freeport zone administrator stated.

With the expected surge in employment, the CDC is projecting to reach a 15% increase in investment pledges to P30.508 billion this year after commitments had already grown by more than four-fold to P26.529 billion in 2010.

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Personal Loans for additional capital

Roy — Sat, 15 Jan 2011 22:31:12 +0000

An opportunity comes when we least expect it, but an astute entrepreneur is always on the lookout for this. That is why when he stumbles upon a really hot opportunity, he does not hesitate to get Business Loans if lacks the funding just so the chance for another investment opportunity would not escape him. He would always know which opportunity to grab and which one would not be worth his time.

For an aspiring, start-up, or a newbie entrepreneur, getting a business loan may not be an option as he does not have business papers or enough collateral to offer for security yet. He could apply for Payday Loans or personal loans in lending companies who accommodate employees in need of emergency fundings.

Loans however should be his last option. Because borrowed money have costs and if not managed properly, the finance charge could cause him to lose. Make sure the opportunity is worth the additional cost, or as often advised by expert, use money with the least costs. Like savings, borrowed money from friends or relatives without interests, or sell some personal assets and convert them to cash to be used for additional funding.

And if it is inevitable that a loan is needed to acquire the additional cash, be sure that it would be used for the intended investment and would not be diverted to other non-earning expenses… which the most common mistakes of the inexperienced who suddenly receives extra cash.

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When investment opportunities arrise

Roy — Sat, 08 Jan 2011 02:46:13 +0000

There is nothing more frustrating for an entrepreneur, whether seasoned, aspiring or a star-up, than when an opportunity drops on his lap and he has no excess cash to invest. Especially when it is a low-risk and high return investment opportunity. It would have been nice to that excess cash when such opportunity come, otherwise, the entrepreneur could just avail of Online Loans to get the additional investing money that he needs. It is not such a bad decision actually, especially if the returns on the planned investment is higher than the cost of the money borrowed. Or if the cost of the money is actually higher, and yet the benefits could be reaped in the long run, it is still a good investment decision.

For employees who wants to escape the rat race and become entrepreneurs, one of the most common source of capital is getting Personal Loan, either from their company or outside lending companies who accommodate employees looking for additional with minimal or no securities required other than a certificate of employment.

Another source of extra cash, and perhaps most common, are Credit Cards as most employees and entrepreneurs have one. Credit card companies made it easier for anyone who have regular income to acquire one these days. Whatever your choice is, just be sure that the investment, and its long term benefits, exceeds the cost of money borrowed.

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Wise investing

Roy — Tue, 21 Dec 2010 23:03:00 +0000

Wise entrepreneurs know that it is not advisable to “put your eggs in one basket,” that is why you find them having diversified investment. They would either have another business, have a joint venture with other entrepreneurs, or spend in their excess money in bonds to earn passive income.

Many would prefer the bonds investment, as like what I mentioned, it is a passive income. Entrepreneurs are always on the lookout for passive income. You can blame it on “Rich Dad, Poor Dad” book which taught that instead of working for money, you should “make your money work for you.”

That refer to passive income, where you invest in bonds, penny stocks, and other investment instruments, and then you do not have to work for it because your money grows in time. If you understand the how to play the stock trading, you know you can invest in blue chips, which could cost higher but are bound to give you higher returns.

Another advise from many entrepreneurs when it comes to investing, invest only “money you can afford to lose.” That means, your excess cash – money that you will not be needing, because of your liquidity, for a long period of time. Chances are, investments could hold your money for some period. Be sure to check and forecast your finances before investing in bonds and stocks.

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Meralco sells bonds to pay debts

Roy — Sat, 04 Dec 2010 22:03:09 +0000

To raise funds to pay for its maturing debt, the country’s biggest power distributor, Meralco Electric Co., will be selling P4.8 billion worth of seven- and 10-year notes. In its disclosure to the Philippine Stock Exchange, the electric company signed an agreement to sell the seven- and 10-year fixed rate bonds at a price of 5.8327 percent and 6.4538 percent respectively. Meralco tapped BPI Capital Corp., as its issue manager and book runner of the bond issue.

Oscar Reyes, chief operating officer of Meralco, said the company will be using the proceeds of the bonds to pay the company’s maturing debt of almost the same amount this month. “This is not related to our power generation project,” Reyes said.

Meanwhile, chief finance officer Betty Sy-Yap of Meralco said that the distribution company might take advantage of the borrowing opportunities in the domestic and international markets due to low interest rates. She also said that the company could use the proceeds of the borrowings to finance its foray into power generation and debt. “Interest rates are very low, there’s so much liquidity in the banking system today. And I think the confidence of investors in the Philippines business environment allows that,” Sy-Yap said.

The power distribution company also signed a P5.5-billion bond float agreement with 13 institutional lenders in December of last year for its funding requirements. First Metro Investment Corp. arranged the issue with SB Capital Investment Corp. and Insular Investment and Trust Corp. as co-arrangers.

Meralco accepted P1.6 billion in fixed rate bond offers due on 2014 and P3.9 billion worth of floating rate notes. It spent over P7 billion for capital expenditures this year to ensure the reliability of its systems.

The company, now controlled by the Philippine Long Distance Telephone Co., San Miguel Corp., First Philippine Holdings and other minority shareholders, has over 4.5 million subscribers in its franchise area.

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QTel mulls additional investment in the Philippines

Roy — Sat, 16 Oct 2010 22:32:23 +0000

A Qatar-based telecommunications company is looking to increase further its investment on Philippine soil. Qatar Telecom QSC (QTel), has a minimal investment in a local listed firm, Liberty Telecommunications Holdings, Inc. The company, through its chairman Abdul Bin Saud Al-Thani, said that prospects in the Philippine telecommunications were so good that they feel that new investments are needed to be made, especially on the data side of the business.

According to Al-Thani, the key technologies that the company was looking at included further advancements in global system for mobile communications (GSM) technology and next-generation mobile wireless broadband technology long-term evolution (LTE). “We’re exploring more investments in telecoms, not just in mobile voice, but also in information technology. Additional investments will be needed, and we’re willing to make those investments,” he said during an interview at the Philippine Business Conference and Expo held recently.

Al-Thani however did not disclose the amount of additional investment that QTel would be having with Liberty. He only said that a comprehensive development plan is needed to be crafted first to determine how much the telecom firm new project would costs. At present, the company has 32 percent investment at the local telecommunications holding firm and QTel is planning to increase it by purchasing additional shareholdings. “We will look at that, up to the maximum allowed by law. In another country, we own as much as 80 percent of the company,” he added.

QTel’s expansion in the Philippines would involve further investments in Liberty, but Al-Thani said that it has no exclusivity agreement with Liberty, it respected its relations with Liberty’s parent company, San Miguel Corporation (SMC). “SMC is our partner and we honor our friendship. Our relationship is beyond partnership. We have a good bond. We are friends,” he said.

Al-Thani also added that the Philippines has always been in their plans and in fact has been in their “radar screen” for a long time. He acknowledges that “the Philippines is a growing market, a high-end market, and there are lot of prospects here, not only in voice. We want to explore the future of telecom technology.”

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Successful working visit with $2.8 billion pledges of investment

arbe — Thu, 30 Sep 2010 11:15:37 +0000

Good news for many of us, Mr. President Benigno Simeon C. Aquino III is coming home with $2.8 billion pledges of investment. This also includes the Millennium Challenge Corp. that grant $434 million and will be using for road construction, tax administration projects and specially for fighting the poverty.

This will help our economy to grow stronger and have a good governance in the part of the administration. The President has plan and work so hard for him to achieve his goal in his working visit in the United States. He also had a meeting with the United States President Mr. Barack Obama and the leaders of the Association of Southeast Asian Nation (ASEAN) and some of big-time US businessmen.

President Aquino is doing his best for our economy to rise up. Good thing President Aquino is an economist before so he knows how to do to improve our economy and because of that there will be some chances that our country can rise up from poverty and can defeat the corruption. Good sign for many of the Filipino specially on the Filipino businessmen that wants their business to be successful and can be successful when our economy rises.

We just need to have a patience of what will be the next move of our President and support him for what he can do to improve this country.

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Growing Franchising Industry

PinoyBusiness — Thu, 23 Sep 2010 01:33:59 +0000

The Philippine franchising today is so strong in terms of income and investment. And even the global economic crisis didnt slow it down and now with the global economic crisis slowly going to recover the franchising industry has more and more investment to offer.

The Association of Filipino Franchisers Inc. (AFFI) even said that thier members have increase to 130 from 75 members in the first half of this year. And its members have expanded their outlets for more than a 5,000 outlets and it also created a more or less 30,000 jobs.

The main reason why the franchising in the Philippines is so strong today is because many filipino can afford to franchise even if you only have a not so big capital just to make sure that you have the right know-how because sustaining a business is not so easy at the start.

Some of the franchising corp. is targeting not only the Philipine market but also the asia and Us market as well.

The Association of Filipino Franchisers Inc. (AFFI) also said that even small business has now getting bigger and expanding thier outlets. So that is a good sign that anyone can be sucessful in this industry just make sure that the one your entering in is a legitimate one.