Alerts

   John Martin Luciano, CFA

BPI launched a Php3.0Bil offering of long-term negotiable certificates of time deposit (LTNCTD) to diversify its funding sources and support its expansion plans. The LTNDs will have a tenor of five-and-a-half years and will carry an interest rate of 4% per annum which will be paid quarterly. The offer period will run until October 16, with the issue and listing dates set for October 25. However, the bank can adjust the timing of the offer if needed.

   Juanis G. Barredo

PSE system is encountering technical difficulties. We are currently monitoring and delay in market opening may occur.

   Richard Lañeda, CFA

According to ALI, it may postpone its real estate investment trust (REIT) offering to 2020, depending on the timeline of the release of the new guidelines by the SEC. Management said they have already made a lot of progress in preparation for the REIT listing, and will just need to tweak some parts of the prospectus and registration statement once the new rules come out. Meanwhile, the SEC hopes to finish the final rules by this year. Note that it already released the draft rules for REITs, seeking to lower the public ownership requirement of REITs to 33% on the first year from currently 40%, and subsequently raise it to 67% on the second year.

   Justin Richmond Cheng, CFA

CIC is consolidating its vertical transport solutions business into its wholly-owned unit Altra with the company pouring in Php915Mil. CIC will be subscribing to 45.7Mil shares out of Alstra’s preferred stock to fund the transfer of shares owned by Concepcion-Carrier Airconditioning Co. (CCAC) in Concepcion-Otis Philippines, Inc. (COPI) into Alstra and Otis Elevator Co. (OEP). This restructuring involves the sale of CCAC’s 73,950 shares in COPI to Alstra for the amount of Php915Mil and 49,300 shares to OEP for Php610Mil.

   Adrian Alexander Yu

Third telco player, Dito Telecommunity Corp has forged deals with Chavit Singson led LCS Holdings and ABS CBN’s Sky Cable Corp for the use of their infrastructure assets. Dito announced that it had signed a Memorandum of Agreement (MOA) with LCS for the rollout of shareable towers in key areas around the country. With regards to SkyCable, Dito is seeking to utilize the company’s unused fiber optic cables located in Metro Manila. While fiber optic cables are used by television networks for transmitting TV signals, it may also serve to transmit cellular signals and internet.

   Adrian Alexander Yu

Urban Deca Homes Manila Condominium Corp. and parent company, HOUSE, were slapped with a Php27.1Mil fine by the Philippine Competition Commission (PCC) for imposing a sole internet service provider (ISP) on unit owners and preventing them from tapping other ISPs. The companies did not contest PCC’s complaint, and proposed a motion of settlement to correct their misconduct.

   Frances Rolfa Nicolas

MWC disclosed that it has filed its motion for reconsideration with the Supreme Court regarding the latter’s decision to fine the company for violating provisions of the Philippine Clean Water Act. Recall that the Supreme Court ordered MWC and MWSS to jointly and severally pay Php922Mil in fines for failing to provide waste water treatment facilities and connecting sewage lines to an available sewerage system within five years after the effectivity of the law in 2004.

   Justin Richmond Cheng, CFA

JFC disclosed that the fund size of Titan Dining LP will be increased from SGD100Mil (~Php3.75Bil) to SGD200Mil (~Php7.5Bil). JFC's subsidiary, Jollibee Worldwide Pte. Ltd., will then increase its capital commitment to Titan from SGD45Mil (~Php1.7Bil) to SGD120Mil (~Php4.5Bil). Recall that Titan Dining LP. is a private equity fund that has executed a binding agreement for the acquisition of 100% of the Asia Pacific master franchise holder of the Tim Ho Wan brand. JFC’s investment will now constitute 60% of the fund from 45% previously.

   Richard Lañeda, CFA

The Philippine Competition Commission (PCC) gave the green light for the joint venture between Dennis Uy-led group and the City Government of Pasay. The joint venture aims to develop a 265-hectare land reclamation project in Manila Bay in Pasay City. The PCC finds that the deal will not lead to a substantial lessening of competition and will even create a new market for commercial and residential real estate in the said area. Under the joint venture agreement, the government of Pasay City allotted rights to reclaim its municipal waters in its section of Manila Bay. Meanwhile, Pasay Harbor City, a consortium composed of Udenna Development Corp., Ulticon Builders, Inc., and China Harbour Engineering Co, will finance all the land reclamation works. (

   John Martin Luciano, CFA

Preliminary data from the BSP showed that domestic liquidity (M3) grew by 6.2% y/y to Php11.9Tril in August 2019, slightly slower that the 6.7% growth registered in July. On a m/m seasonally-adjusted basis, M3 increased by 0.3%. Domestic claims grew by 6.2% in August, mainly due to the sustained growth in credit to the private sector. Likewise, net claims on the central government grew by 2.1% following a 1.8% contraction in July. Net foreign assets (NFA) in peso terms increased by 8.9% y/y in August, faster than the 5.8% growth in the previous month. The NFA of banks increased as their foreign assets grew as a result of higher loans and investments in marketable debt securities. Similarly, the BSP’s NFA position expanded, supported by foreign exchange inflows coming mainly from overseas Filipinos’ remittances and business process outsourcing receipts.