The peso rate closed lower at P53.25 to the US dollar yesterday at the Philippine Dealing System of the Bankers Association of the Philippines from P52.92 the previous day. The weighted average rate depreciated to P53.034 from P52.916. Total volume amounted to $ 526.5 million.
BTr to resume T-bill auctions
The Bureau of Treasury said yesterday it would resume selling Treasury bills and bonds through its regular auctions next week, after staying out of the market for three weeks. The government will offer P3.0-billion worth of 91-day, 182-day and 364-day T-bills on June 13, and R3.5-billion worth of 10-year T-bonds on June 14. Financial markets are closed Monday for a public holiday. The Treasury had cancelled regular auctions in the last three weeks after posting a rare budget surplus of P17.6 billion in April, an income tax payment period. The surplus helped narrow the budget gap to P50 billion for the first four months of the year, from P67.6 billion in the first quarter.
Montinola new BAP president
Bank of the Philippine Islands (BPI) President Aurelio Montinola III is set to take over as president of the Bankers Association of the Philippines (BAP) as a result of the merger that resulted in International Exchange Bank (iBank) being absorbed by Union Bank of the Philippines. Former BAP president Cesar E. A. Virata said Montinola will succeed outgoing iBank President Ramon Sy. "Mr. Sy told us he will not be joining the merged bank," Virata said, assuring that there will be no vacuum created with the departure of Sy, who had the distinction of being the shortest-ever elected BAP president. This developed as Union Bank has already announced the appointment of its executive vice president Edwin Bautista as the president of iBank to replace Sy. It is expected that the merger of iBank and Union Bank will be completed in the next two months and the final absorption of iBank into the Union Bank operations this year. Despite this, Virata pointed out Bautista will not get the BAP position of Sy. Membership in the BAP is by "institution and not by personalities," Virata explained. With iBank out, Virata stressed that Union Bank "will not necessarily" assume its position in the board of BAP. "Union Bank has not been elected in the last general membership meeting as member of the board. It has to wait."
CEB backs rail line to airport
Cebu Pacific (CEB) said yesterday it fully supports the initiative of the Manila International Airport Authority in partnership with the Light Rail Transit Authority for the construction of a rail project to link the Manila Domestic Airport to the LRT-Baclaran train station as it will make travel to and from the domestic airport easier, faster and more affordable for the growing number of domestic travelers availing of Cebu Pacific’s low airfares. The LRTA rail project proposal is all the more laudable as this will become part of the overall improvement of the domestic airport’s facility in terms of accessibility.
Fitch upgrades Globe rating
Fitch Ratings said it has revised the outlook on Globe Telecom Inc’s long-term local currency Issuer Default Rating ("IDR"), currently at "BB+", to ‘positive’ from ‘stable’. At the same time, Fitch affirmed the "BB" long-term foreign currency IDR of Globe, with a stable outlook. This is in line with the Philippine sovereign long-term foreign currency IDR rating of "BB". Fitch also affirmed the rating on Globe’s senior unsecured debt instruments at "BB". "Even though Globe reported only modest improvement in its financial profile in 2005 — which was a consequence of the acute competition and share buyback in (the first half of that year) — the company is expected to consolidate its market position over the course of 2006 leading to further strengthening of key credit protection measures," Fitch said in a statement. "This should be supported by generally more rational competition than was witnessed during (the second half of 2004 and first half of 2005), growth in cellular subscribers, and the relatively weak operating leverage of most competitors," it added.
Chinese firm, SBMA ink deal
Hebei Xintai Jingniu Glass Manufacturing group, a large-scale transnational company based in China which produces and sells high tech glass products recently signed a $ 312-million deal with the Subic Bay Metropolitan Authority (SBMA) for the construction of an ultra- modern glass production facility. The 50-year lease agreement was signed by SBMA top officials Chairman Feliciano G. Salonga and Administrator and CEO Arman Arreza, and Hebei Chairman and CEO Wang Chan Lin. Covering over a year’s worth of negotiations, the Hebei group will be setting up their glass production firm in a 32-hectare land area to be located at the Maritan Hill area along Argonaut highway. Salonga expressed optimism over the deal, saying that the new project will provide more than 3,000 jobs.
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