May 4, 2012- Morning Linkfest

1.)     PNB raises Php3.5 Bil from debt notes offering (Inquirer)

Lucio Tan-led’s Philippine National Bank has raised Php3.5 Nil from a fresh offering of 10 year debt notes qualifying as tier 2 or supplementary capital, set at 5.875 percent per annum, cheaper than the 6.75% p/a fetched by its first tranche issued in June 2011.  Investors’ positive credit outlook of the bank allowed PNB to price the issue almost at par with the 10 year PDST-F benchmark, according to executive vice president and head of treasury Horacio Cebrero III.

2.)     GT Capital takes full control of Federal Land (Inquirer)

GT Capital has acquired an additional 20% block to take full control of Federal Land for Php2.7 Bil.  It was earlier announced that GT Capital planned to use up to Php6.16 Bil of the primary proceeds from its IPO to boost capital spending of Federal Land this 2012 through 2013.  This is to bankroll ongoing projects like Grand Hyatt, Marco Polo Residences and Metropolitan Park.  For 1Q2012, Federal Land reported that reservation sales surged by 113% to Php3.8 Bil as strong sales were realized from its various property projects.


3.) Bloomberry raises $210 Mil via shares sale (Inquirer)

Bloomberry completed a $210 Mil fund raising for the first phase of its integrated gaming and entertainment complex in Pagcor City.  The company had sold 1.179 Bil shares at Php7.50 per share, and the offering was at least five times oversubscribed during the re-IPO.  CLSA, as stabilizing agent, has the option to take up additional 117.996 Mil shares of Bloomberry.  About 1.3 Bil shares were crossed at Php7.50 per share, covering even the overallotment option.


3.)     Andrew Tans’ property firms post 52% jump in 1Q sales (ABS CBN)

AGI disclosed that in a statement that its four companies, Megaworld Corp, Empire East Land Holdings, Suntrust Properties and Global Estate Resorts, reported reservation sales of Php16.4 Bil in the first quarter, a 52% jump from the same period last year.  AGI said that the spike in reservation sales of its middle income brand Empire East and affordable housing brand Suntrust  was attributed to marketing of its multi-tower condo developments in Manila and residential communities in Calabarzon area.  AGI is confident its real estate firms will meet the target of Php55 Bil in reservation sales in 2012.


4.)     Listing-bound Calata Corp eyes 100 new outlets/yr (Philstar)

Bulacan-based agricultural firm Calata Corp aims to open 100 retail outlets annually to spur growth and shore up revenue base.  Calata is the country’s largest combined distributor of agro-chemicals, fertilizers, seeds, feeds and veterinary medicines from manufacturers and partners under leading brands such as B-Meg, Syngenta, Bayer, Jardine, Dupont Monsanto, Swire, Yara, Viking and East West seeds.  To fund expansion, Calata is hoping to raise up to Php270 Mil through an IPO of its shares.  Company is selling 36.012 primary shares at a maximum price of Php7.50/share.  Public float will be 10%.  Offer period runs from May 10-16.  Trading will start on the secondary board of the stock exchange by May 23.


5.) ICTSI buys into garment firm (Bworld)

ICTSI has acquired a controlling stake in an Indonesian garment manufacturer.  In a PSE disclosure, ICTSI has stated that its subsidiary Far East PTE amassed an 70% stake in PT Karwell Indonesia Tbk.  ICTSI Chairman Enrique Razon Jr said that the company is also looking to acquire more port concessions in Africa, Middle East, and Latin America.


5.)     GMA stretches nationwide ratings lead (Philstar)


GMA stretched its lead nationwide for the month of April, according to Nielsen TV Audience Measurement.  GMA posted audience share of 35.5 points, ahead of main rival ABS’ 29.4 points and TV5’s 15 points.  GMA’s margins translate to more than one million viewers over ABS CBN and almost 3.6 million viewers over TV5 nationwide.    GMA hit P1.7 billion in net income in 2011 amid cutbacks in the advertising budget of top multinationals in 2011. ABS-CBN, meanwhile, excluding the one-time gain on sale of Sky Cable worth P1.1 billion, managed only P1.3 billion.

Think of Others’ Opinions:

1.)     Economic growth must be inclusive- Jeffrey Sachs (Inquirer)

2.)     “If you look at our economy, we are very consumer demand-driven… What would be lacking is foreign direct investments.  We’ve had some portfolio flows. But the fact is that FDIs are missing. This is a great time for long term capital to start coming in, building it up,” – Jaime Zobel de Ayala (ABS CBN )

3.)      Look anyone in the Philippine advertising industry knows that if you have P63 million to spend to buy what we finally got, which is 2,900 spots across Asia, Europe and the US, not equally distributed of course. But even then it comes to P19,000 per spot. I’m a little in a daze because I didn’t want my competitors to find out how good a deal we got, but it’s there,” – DOT Secretary Ramon Jimenez on “It’s more fun in the Philippines campaign spending” (ABS-CBN)

4.)     Mr. Shinohara, IMF Depity Managing Director, who visits the Philippines at least once a year, did note that the government had “worked very hard” to improve governance and had notched successes, particularly in creating a fiscal space after increasing revenue collections.

The government also succeeded in rolling out a public-private partnership (PPP) project — the P1.9-billion Daang Hari-South Luzon Expressway link awarded in December to Ayala Corp. — and has lined up more projects that will be bid out this year.

“The last time, there was a lot of talk about (the PPP),” Mr. Shinohara said. “Now, one has been rolled out and there are more to come.”


“When I talk about governance, I’m not talking about anti-corruption, but governance in general, which includes policy-making, the fiscal structure, supervision of state institutions, risk management of state institutions, all these things,” Mr. Shinohara pointed out.

He added that the Philippines’ tiff with China over disputed islands in the Spratlys would not directly impact market confidence as this is a “long-term issue.” (Bworld)


When asked if the company is threatened by San Miguel Corp.’ takeover of Philippine Airlines (PAL), Gokongwei said there’s no need for that.

“We don’t necessarily have to compete with each other. We have complementary roles,” Gokongwei said. (Philstar)

– Faceless Trader


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