NEWS IN BRIEF; P/$ rate closes at P51.69 to $1. (2024)

The peso rate closed lower at P51.69 to the US dollar yesterday at the Philippine Dealing System of the Bankers Association of the Philippines from P51.58 the previous day. The weighted average rate depreciated to P51.639 from P51.55. Total volume amounted to $474.5 million.

EIB owners offered new shares

Export and Industry Bank (Exportbank) announced yesterday that it was giving all shareholders the chance to subscribe to new shares under the same terms as existing major and new shareholders who have injected P3 billion fresh capital to the bank. In its disclosure to the Philippine Stock Exchange, Exportbank said it is still working on the details of the procedure for the issuance of new shares. The move was in response to a suggestion made by a shareholder in the Special Meeting held last January 25 that other shareholders also be given a chance to purchase shares. Shareholders of the bank, led by the Lippo and Yao groups, together with Extra Year Investment Ltd, designated vehicle of the Raiffeisen Zentralbank Osterrich AG (RZB) Group of Austria and AO Capital Partners Ltd. of Hong Kong, form part of the team that had invested the P3 billion in fresh capital. On January 25, shareholders of the bank approved a P3 billion increase in capital to P7.5 billion

EPCIB net profit up 33% in 2005

Equitable PCI Bank said it posted unaudited net profit of P2.4 billion for 2005, up 33 percent from P1.8 billion the year before, on the back of interest gains and fee-based income. However, the countryas third largest lender by assets said the results do not reflect yet new International Accounting Standards. Net interest income grew 22 percent to P10.9 billion, pushing the net interest margin to 4.47 percent from 4.22 percent in 2004. Other income, including service charges, fees and commissions, rose 5 percent to P7.9 billion. Equitable PCI President and CEO Rene Buenaventura attributed the strong earnings growth to the bankas strategic initiatives to pursue higher-margin middle market and retail accounts, build up the low-cost deposit base, clean up the balance sheet, and boost non-interest income. Total resources expanded 5 percent year-on-year to P325.5 billion as of end-2005, supported by internally generated funds and a 7 percent hike in deposits to P208 billion.

ADB hikes Aussie bond issue

SYDNEY, Feb. 16 (Reuters) a" The Asian Development Bank is issuing A$300 million (US$222 million) of its 6.25 percent, June 2011 Kangaroo bonds, lead managers Commonwealth Bank and UBS said on Thursday. The bonds are being offered at 27/28 basis points above Australian government bond yields. Pricing is expected on Friday with settlement on Feb. 24. The ADB is rated triple-A by Moodyas and S&P.

BancNet transactions highest

ATM network BancNet posted a total of over 123 million total transactions for the year 2005, the highest in the history of the 28-member bank consortium. Cash withdrawals constituted almost half of the transactions at 60 million, followed by balance inquiry at 40 million transactions and the rest is accounted for by bills payment and shopping transactions. The network registered a high 98 percent completion rate for all transactions. BancNet anticipates a continuous increase in the volume of ATM transactions in the coming months and is therefore intensifying the reliability of the ATMs coupled with a campaign on security awareness among its cardholders. Francisco M. Caparros Jr. BancNet President, reminds cardholders of possible fraud or petty crimes in the use of ATM cards. "The PIN should be kept confidential and never divulged or shared with anybody," Caparros contends. Unauthorized withdrawals could happen if the cardholder revealed the PIN to someone else or was not careful in covering the keypad when entering the PIN on the ATM machine.

Firm sells Basic Petroleum

Publicly-traded Basic Consolidated, Inc. (BCI) is disposing of its entire shareholdings in Basic Petroleum and Minerals, Inc. (BPMI), the company yesterday disclosed to the Philippine Stock Exchange. According to BCI, it already gained board approval for the sale of its 100 percent stake in BPMI to Forum Energy Plc (FEP). The company however added the Sale and Purchase Agreement it earlier signed with FEP is still subject to shareholder approval. A special stockholdersa meeting has been set on March 29, 2006 to have the Sale and Purchase Agreement approved by the stockholders. BCI is an investment holding company that whollyowns BPMI, Basic Diversified Industrial Holdings, Inc. (BDIH), Basic Consolidated Land, Inc. (BCLI) and Basic Consolidated International, Inc. (BCII). Together with other participants, BSC was a party to a Service Contract (SC 14) with the Philippine government, through the Department of Energy, for the exploration, development and exploitation of contract areas situated in offshore Northwest Palawan where oil discoveries were made.

The company is also a party to nine other Service Contracts (SCs) and Geophysical Survey and Exploration Contracts (GSECs) located in Palawan, Mindoro, Central and Southern Luzon and the Sulu Sea.

Uniwide leases supermarkets

Uniwide Holdings Inc., said it has decided to lease out its supermarket business to another company after suffering heavy losses in this segment. In a disclosure to the stock exchange, Uniwide said unit Uniwide Sales Warehouse Club Inc has signed a lease agreement with Suy Sing Commercial Corp that will result in the retrenchment of about 424 Uniwide employees. Uniwide, which also operates warehouse clubs and department stores, said the lease agreement covers all its six stores and will generate monthly rental income of about P4.0 million. Uniwide suffered a net loss of P435 million in the nine months to September last year, more than three times the P129.4 million net loss booked in the same period in 2004.

TPG files petition for rehabilitation

Professional Financial Plans (TPG Corporation) has filed a petition for rehabilitation with the Makati Regional Trial Court in an attempt to implement its STEP-UP Program ( Scholarsa Trust Fund with Equitable Pay-outs for Unified Preservation) at the soonest possible time. STEP-UP Program calls for preserving the companyas trust fund and reserving a portion of scholarsa availment benefits as equity in a financial holding company that will have interests in a diverse portfolio of financial services. Part of TPGas STEP-UP Program is to transform itself from a purely pre-need company into an investment holding company. This conversion will diversify TPGas business portfolio to include micro-financing and thrift banking. According to TPG, the first step in the proposed program is to preserve the companyas trust fund. It said the trust fund is preserved by redefining pay-outs where open-ended educational plan benefits will be converted into equivalent fixed value plan benefits. As the trust fund is preserved, a portion of the redefined benefits shall then be given in the form of non-cash returns. The proposed investment holding company will invest in diversified areas involving banking, financial services and others. Lastly, TPG said the planholders will then be rewarded as they will participate in the profits of the newly transformed company. In a statement the company said it is imperative for it to adopt measures now to ensure the orderly settlement not only of its present liabilities, but more so of its future obligations to planholders. "We also have to consider the welfare of waiting planholders who comprise the majority of our constituents," company Chairman and Chief Executive Officer Francisco J. Colayco said in a statement. " Our decision to seek court mandate for STEP-UP implementation became the necessary step to ensure that we achieve the objectives of STEP-UP," Colyaco added.

ADB allots $1-M for rice technology

The Manila-based Asian Development Bank (ADB) is making available a $1 million technical assistance grant to Southeast Asian countries including the Philppines for the development of water-saving rice technologies in the drought-prone and water-short region. Current rice production systems consume a high amount of water. It takes about 3,000 liters of water to produce one kilogram of rice. Irrigated non-agriculture areas, which provide 75 percent of total Asian rice production, consume 50 percent of all freshwater diversions. "This profligate usage of water in irrigated rice production is unsustainable, given the increasing demand for freshwater due to growth in rice demand and growing competition from other sectors," says Tumurdavaa Bayarsaihan, an ADB Senior Agricultural Economist. "With the present rate of water usage, even maintaining productivity in many currently irrigated areas will be difficult unless more water-efficient rice production technologies suitable for irrigated areas are developed." It was estimated that by 2025, 12 million hectares of irrigated rice may suffer from severe water shortage, with serious effects on the food security and social stability of the region. The Philippines-based International Rice Research Institute (IRRI) estimates that a 10 percent reduction in water use for rice irrigation would free 150 billion cubic meters, or 25 percent of the total freshwater used in Asia for nonagricultural purposes. The technical assistance will support the development of new water-saving rice production technologies based on improved varieties at IRRI, that will be distributed to national agricultural research centers in Bangladesh, India, Nepal, and Pakistan. These centers will further refine, evaluate, and then disseminate the developed varieties, validating them at selected target fields with the participation of farmers.

USDA extends training grant

The Agricultural Trade Office of the US Department of Agriculture (USDA) in Manila is providing an $80,000 grant for the establishment of a training facility that will promote US food products in the country. The grant would finance the purchase of modern equipment for the facility and support training programs for the local chefs. The training center with a demo kitchen is expected to be operational by April this year. Dennis Voboril, director of the Agricultural Trade Office (ATO) said that his office has initiated the project in cooperation with the Filipino chefs and forged a memorandum of agreement with the Center for Culinary Arts (CCA). "The facility will allow us to tap into the high-level expertise of the local chefs. This is how we see the tie-up between our training facility and our Council of Chefs," said Voboril. Under the program, 10 Filipino chefs would be trained at the Culinary Institute of America for two to three weeks. "We are planning to use the Filipino chefs as part of our train the trainer program as we closely work with them on the use of US products such as baking ingredients," Voboril said. Once the program is in place, more Filipino chefs would be trained here instead of bringing in an outside chef to Manila, he added.

Go NeGosyo Summit slated Feb. 23

Presidential Consultant for Entrepreneurship Jose Concepcion III said that enterprises related to the services sector appear to be the easier sector that a start-up business can enter into because this is still a sunrise sector of the local economy. Concepcion said at the launch of the twin activity of the Philippine Center for Entrepreneurship (PCE): Go NeGosyo Summit and Go NeGosyo Expo this month. "But it really depends on their capital and skills," he said although he noted that enterprises such as internet cafes and others that relate to call centers are good proposition. He also noted other services industries such as the massage therapy business and other home service enterprises like plumbing are getting a fair share of attention. Such enterprises only require between P10,000 to P15,000 in capital. The Go NeGosyo Summit to be held on February 23 aims to demystify and popularize the essentials of entrepreneurial success while bringing together educators and successful entrepreneurs in one venue. The summit will feature the countryas award winning entrepreneurs. On the other hand, the Go Negosyo Expo to be held on February 24-25 is expected to showcase over a hundred business ideas, entrepreneurship shools, NGO-led programs, microlending facilities, awardwinning business plans, marketable inventions and free seminars for would-be entrepreneurs.(BCM)

Smuggling of ceramic tiles exposed

The Federation of Philippine Industries (FPI) has uncovered a disparity in the countryas imports of ceramic tiles from China as against the record of Chinaas exports of the same commodity to the Philippines. In a statement, FPI president Jesus L. Arranza said documents showed a wide disparity in the figure for the period 20022004.In 2002, the Bureau of Customs registered a total volume of imports of only 638,864 square meters of ceramic tiles for the year 2002 whereas the data obtained from China indicated a total exports to the Philippines of 3,629,355 square meters or a disparity of 2,990,491square meter of ceramic tiles. In 2003, a trend appeared when Customs registered only 397,345 square meter of ceramic tiles: Chinaas records indicated a steep high of 4,380,000 sqm or a disparity of 3,982,655 sqm of ceramic tiles. In 2004, Arranza said a dramatic change occurred because of the domestic industryas vigilance and continued networking with the BoC through the FPI. Customs registered a total of 4,359,586 sqm of ceramic tiles compared with what China actually exported to the country at 6,601,301 sqm of ceramic tiles. The trade disparity was down to 2,241,715 sqm of ceramic tiles."Citing the above trend in the importation of ceramic tiles from Chinadoes prove only one thing and that is, the validity of the IMFreport," Arranza said.

SITEL opens Eastwood City facility

SITEL Customer Care Philippines Inc. (a division of SITEL Corporation), a leading global provider of outsourced customer support services, recently opened one of its showcase facilities in Eastwood City. DTSI, (Diversified Technology Solutions International, Inc.), a leading onshore and offshore systems integrator and technology solutions and services provider, assisted in the determination of the best possible location for SITELas call center as well as managed the construction of the office space and installation of furnishings. DTSIas integrated processes and close partnerships with premiere service providers assured SITEL of the best and easiest way of building their showcase facility in the country. "DTSI was extremely well versed in dealing with vendors and getting the best deals. They chose the best price and the brightest people," said Connie Cornelius, SITEL VP for Special Projects. "I was only able to visit the site twice during the build-out. DTSI worked extremely well with remote supervision." SITEL began evaluating the Philippines for business opportunities during the last quarter of 2003 with the intent of providing a cost effective contact center model for the English speaking clients from around the world. They needed a local team that could move quickly and above all protect SITELas best interest. An estimated 25 percent savings on capital expense within the Philippines was gained by SITEL by partnership with DTSI.

Cebuana Lhuillier Services, Corp., provider of domestic remittance service Pera Padala (www.perapadala.com), continues to expand its reach as it formally forged a partnership with global money transfer service provider MoneyGram and Equitable PCI Bank (EPCIB). The partnership supports the three companiesa common thrust of providing fast, safe and reliable remittance service to its customers. MoneyGram, a leading global payment service company and an S & P MidCap 400 company, has approximately 89,000 global money transfer agent locations in 170 countries and territories. Together with EPCIB, Moneygram boasts of a strong initial customer base of overseas Filipino workers (OFW). Pera Padala on the other hand, is available in Cebuana Lhuillieras nationwide network of branches, which is open 7 days a week, has extended operating hours and has a name synonymous to stability and reliability. Attended by no less than MoneyGramas Regional Director Nick Cunnew, Business Development Manager for Asia Pacific Remas Ho, Senior Vice President Richard So, Cebuana Lhuillier Services Corporation (CLSC) President Jean Henri Lhuillier and Vice President Andre Lhuillier, the contract signing reinforces the respective companiesa commitment of quality service to customers especially to the more than seven million Filipinos working abroad. "MoneyGram customers can now benefit from the additional access points for their money remittance needs now that Cebuana Lhuillier, through Pera Padala, is a part of the MoneyGram network in the Philippines. The network of Cebuana Lhuillier provides a channel that can give fast, safe and affordable remittance service all over the country," Jean Henri Lhuillier said.

Q-Logic, one of the most dynamic, legitimate and fastest-growing direct selling companies in the country, is expanding its wings in 2006. It will open more stores all over Metro Manila and nearby provinces to address the growing needs of its active members. Q-Logic Incorporated has branches in Farmeras Plaza-Cubao, Metropolis Mall in Alabang, Starmall in Mandaluyong and three (3) more outelts in Iloilo, Davao and General Santos City. Fueled by its commitment to provide worldclass products and a decent livelihood to thousands of its members, QLogic is serious in its bid to be more competitive and at par with the "giantsa" in the industry. The company is engaged in manufacturing high-quality leather products and has been considered as trendsetter in consumer direct marketing. Established in October 2003, Q-Logic opened its flagship store in Retiro Street, Quezon City which also houses the marketing, product development, show room and logistics departments. The firmas huge warehouse is located in Bulacan where most of QLogicas leather products are manufactured and stored. The firm is backed up by two respected retailing companies that have become symbols of quality and dedication in the field of leather shoes, bags and colorful apparel.

NEW YORK, Feb. 12 (Reuters) a" US investment bank Morgan Stanley on Friday named a new chief executive for its businesses in Asia, among the fastest-growing markets for Wall Street firms. In an internal memo from Chief Executive John Mack and Co-President Zoe Cruz, the bank named Hans Schuettler, an executive who led its expansion in Europe, as chief executive of Asia. Schuettler, based in Hong Kong, will report to Morgan Stanley Asia Chairman Alasdair Morrison and Cruz. Schuettler has served as the bankas country head for Germany and more recently as co-head of investment banking in Europe. Franck Petitgas will become sole head of investment banking in Europe, while handing off his responsibilities as head of global capital markets to Colm Kelleher, the bankas co-head of fixed-income in Europe since March 2005. Kelleher will relocate to New York Morgan Stanley also said Sean Notley will now become sole head of fixed income in Europe in addition to co-head of the bankas global interest rate and currency group.

Local exporters of wood packaging materials (WPM) would be affected by new debarking requirements imposed by the the European Council (EC). WPMs imported into EU must be made from bark-free wood free from pests and signs of pests, must either be heated or fumigated with methyl bromide following the directive of ISPM 15, and must be officially marked per ISPM 15. The EC also requires WPMs to have a declared moisture content expressed as a percentage of dry matter of less than 20 percent achieved at the time of manufacture. The debarking requirement is optional in the international standard, but it will give the EU an even better protection against the introduction of plant pests and diseases. It is also in keeping with the International Standards for Phytosanitary Measures (ISPM) No. 15 on Guideline for regulating wood packaging material in international trade. The impetus for the new requirements is in the ECas desire to protect European forests from destructive foreign insect pests. There are also exemptions from the requirements. The exemptions include raw wood that is 6mm or less thick and processed wood such as oriented strand, board, particle board, plywood or veneer created using glue, heat and pressure or a combination of any.

The Manila International Airport Authority (MIAA) has sought to engage a private valuation party to assess the value of the Ninoy Aquino International Airport Terminal 3 (NAIA 3) in relation to the compensation that it has to settle with its investor, the Philippine International Air Terminals Co. (PIATCO) and eventual commercial operation. According to Favila, MIAA General Manager Alfonso Cusi has sought approval from a policy group to engage the services of an independent assessor for NAIA3. Trade and Industry Peter B. Favila said a valuation of the facility is necessary because there are still minor components that have yet to be completed. The valuation of the asset must also be done as the government is mandated by the Supreme Court to pay the developer of NAIA-3 for a "just compensation". Favila said that government is doing its best to facilitate the opening of the facility. He said the arbitration case is going on and recently the government witnesses went to Washington to attend to the case filed by Fraport Services AG, the major investor in PIATCO, against the Philippines. Favila, on the other hand, gave assurance to both the public and the business community that NAIA-3 would be in commercial operation.

Philippine Savings Bank said it expects net profit to rise to P800 million this year from P640 million in 2005 as the lender extends more consumer loans. Last yearas profit translates to earnings per share of P3.57. It also told the stock exchange in a disclosure that its non-performing loans ratio improved to 5.8 percent at end-2005 from 6.1 percent in 2004. The lender said it increased provisions for probable loan losses last year, resulting in an improved NPL coverage of 89.1 percent at end-2005 from 57.6 percent in 2004.

The Department of Trade and Industry (DTI) is investigating 50 retailers from six Metro Manila wet markets who were found selling basic necessities and prime commodities way above their estimated prevailing prices. This developed as DTI intensified its daily price monitoring as part of the crackdown on unscrupulous businessmen who are unreasonably raising the prices of basic goods because of the additional 2 percent in VAT. Trade and Industry Secretary Peter B. Favila said the 50 retailers have been summoned to explain the reason for their high selling prices when other stalls in the same market are able to sell at more reasonable prices. "We are not denying from these businesses their right to a fair return of investment. But if we find that their selling prices are unreasonable and unjustifiable, then they will be penalized for violating the Price Act," Favila said. Favila has mobilized the entire DTI to monitor prices nationwide. "We will penalize unscrupulous retailers who are taking advantage of the RVAT, and we will not hesitate to implement the law to protect the welfare of the consuming public," he warned. Undersecretary for Consumer Welfare Zenaida C. Maglaya said that DTI has already intensified its coordination with local government units, through the Local Price Coordinating Councils, for assistance in monitoring the price situation in all cities and provinces nationwide.

SEC exempts MWCas ESOP

The Securities and Exchange Commission (SEC) has exempted from its registration requirements the proposed issuance of 25 million common shares by Manila Water Company, Inc.. The shares, which will be offered at P6.50 per share, form part of the companyas proposed Employees Stock Ownership Plan (ESOP). This plan is being implemented and administered as a significant aspect of MWCas long-term merit system. According to MWC, the ESOP is only a privilege, not a right, extended to the companyas managers whereby the company allocates a percentage (not more than 3 percent) of its authorized capital stock for subscription by said personnel under certain terms and conditions stipulated in the Plan. The grantees under ESOP Plan are the employees and officers of the company ( with rank if Manger 1 and up) who may be given allocations pursuant to the companyas incentives and rewards program. The total number of employees and officers of the company who are eligible to participate in the Plan is approximately 160. MWC has two other Stock Option Plans namely: Employees Stock Option Plan (ESOP) and Executive Stock Ownership Plan (Executive SOP). MWC issued 120 million common shares under its ESOP and 23.6 million shares under its Executive SOP. Both issuances were earlier exempted from the registration requirements of the SEC. The exemption give by the SEC was in line with Section 10.2 of the Securities Regulation Code. It provides that the Commission may exempt other transactions, if it finds that the requirements of registration under this Code is not necessary in the public interest or for the protection of the investors such as by reason of the small amount involved or the limited character of the public offering.