PNB to raise over P10B from sale of debt, assets

By Lawrence Agcaoili (The Philippine Star) Updated June 01, 2011 12:00 AM

MANILA, Philippines - The Philippine National Bank (PNB) aims to raise at least P5.5 billion from the sale of unsecured subordinated debt and another P5 billion from the sale of real and other properties acquired (ROPA) to beef up its capital and bankroll its expansion program.

PNB president and chief executive officer Eugene Acevedo said in an interview with reporters after the bank’s stockholders’ meeting yesterday that it intends to dispose of P5 billion of ROPA this year.

PNB has also started selling of P5.5 billion worth of unsecured subordinated debt qualifying as Tier 2 capital callable with no step-up on June 2016.

The offer size that could be inceased based on oversubscription would end on June 10. Arrangers include PNB and ING Bank NV while selling agents include First Metro Investments Corp. and Multinational Investment Bancorporation. PNB Capital and Investment Corp. as well as Allied Banking Corp. would act as limited selling agents.

The debt paper was supposed to be issued last year but was deferred after the BSP issued Memorandum 2010 - 037 imposing a moratorium on approvals of bank applications to issue Hybrid Tier 1 or Tier 2 capital as it redefines banks’ capital until December 31 in compliance with Basel III that tigthened the definition of instruments that qualify as bank capital.

Acevedo pointed out that PNB intends to open 20 branches and establish 158 automated teller machines (ATMs) as part of its expansion program as it pursues the merger with Allied Bank.

“We are going to put up 15 branches to 20 branches before the end of the year. We are also moving unprofitable branches to locations which make more sense,” he added.

He pointed out that the proposed merger that is awaiting approval by the Bangko Sentral ng Pilipinas (BSP) and the state-run Philippine Deposit Insurance Corp. (PDIC) would result in savings amounting to P1 billion.

The proposed merger, according to him, would cost between P1 billion and P1.5 billion.

Acevedo said PNB hopes to exceed the income registered last year despite the sharp decline in the first quarter of the year.

PNB’s net income jumped 60 percent to P3.53 billion last year from P2.2 billion in 2009 while its assets inched up by 6.6 percent to P302.13 billion from P283.3 billion.

“We aim to beat our 2010 income,” Acevedo told the bank’s stockholders yesterday at the Century Park Hotel.

However, PNB’s earnings plunged 64 percent to P319.78 million in the first quarter of the year from P888.98 million in the same quarter last yeardue to heavy losses in mark-to-market valuation of investments securities.

He said the bank has a few tricks up its sleeves to make sure that it beat its net income last year. “One quarter does not make a year,” Acevedo stressed.

He said the bank hopes to expand its loan portfolio by 20 percent by focusing on consumer loans as well as small and medium-sized enterprises on top of its corporate clients.

He explained that loans to consumers account only for nine percent of the bank’s total loan portfolio while loans to SMEs corner only seven percent.

In all, the bank hopes to raise its two percent share in the industry’s total loan portfolio for consumers to about 10 percent over the next four years to five years.

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Anchor Land to increase capital

[ manilatimes.net ] June 1, 2011

Anchor Land Holdings Inc. has secured board approval to increase its authorized capital stock.

In a disclosure to the Philippine Stock Exchange, Anchor Land said it would hike its capital stock from P1 billion to P2.3 billion and amend its the Articles of Incorporation to reflect the increase.

The property developer also declared a stock dividend of one common share per one outstanding common share held by the stockholders.

The record date of the stock dividend will be fixed and approved by the Securities and Exchange Commission after the latter approves the increase in the company’s authorized capital stock.

Anchor Land expects revenues to hit the P3-billion level this year, a 12.17-percent improvement from the P2.66 billion generated in 2010.

In the first three months, the real estate firm’s net income increased by 53 percent to P212 million from P139 million last year, on the back of the strong sales and the continuing development of three ongoing projects.

Anchor Land plans to launch seven projects this year. Its wholly owned subsidiary Posh Properties Development Corp. will beef up its land bank. Anchor Land shares rose to P13.60 on Tuesday from P11.50 each on Monday.

Krista Angela M. Montealegre

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Manila Jockey allots P15B for 3 township projects

By Zinnia B. Dela Peña (The Philippine Star) Updated May 31, 2011 12:00 AM

MANILA, Philippines - Horse racing operator Manila Jockey Club is funneling at least P15 billion over the next 10 years into three township projects with a combined area of 300 hectares, as it hopes to ride on the expected tourism wave.

In a briefing following the company’s stock rights listing ceremony yesterday, Manila Jockey executive vice president and chief operating officer Alfonso Reyno III said they are fasttracking the development of the 77-hectare San Lazaro Leisure and Business Park in Carmona, Cavite and the 16-hectare township in Sta. Cruz, Manila, as well as laying the groundwork for a resort and leisure hotel in Mamburao, Occidental Mindoro.

Reyno said the company would source funding from a combination of debt and equity. Manila Jockey raised P287.49 million from a recent stock rights offering.

He said about P5 billion of the programed capital budget will go to the Manila township, which include the development of a two-story casino with a floor area of 6,000 square meters. The casino will house 500 slot machines and 50 gaming tables. The company is currently awaiting the terms of the license to operate from stage gaming firm Philippine Amusement and Gaming Corp. Development of the casino would take 26 months to finish.

To complement the casino, a 250-room Mercure hotel to be managed by the Accor international hospital group, as well as an open air commercial area patterned after Xin Tian di in Shanghai, China with retail shops, garden restaurants, entertainment plaza and a 500-slot multi-level carpark, would be put up.

To add to the existing Avida Towers, Celadon Residences and Celadon Park, a four-tower residential apartelle and condominium with approximately 2,000 units would also be built.

Around P3 billion to P3.5 billion has been earmarked for the completion of the Cavite township, which features the first racino (racing facility with casino) in Asia with a floor area of 13,000 squre meters. A four-storey Turf Club building houses a racing grand stand and airconditioned viewing gallery, banquet area with a seating capacity of 1,000 people and the Pagcor VIP Club with 242 slot machines and eight gaming tables.

With all 792 residential units in the 18-hectare Canyon Ranch completed and sold, the group is now preparing for the development of a five-cluster mid-rise residential condominium complex overlooking the race track. A 200-room resort hotel and spa are likewise in the pipeline to cater to the needs of both horse betting aficionados and the leisure travellers.

Also being planned is a sports club that will feature a wakeboard water area similar to the CamSur watersports complex, two soccer fields, a baseball diamond field and an Olympic-sized competition pool.

For the Mamburao project, which signals the company’s entry into resort development, Manila Jockey is planning to build a 150-room resort hotel with sports and driving facilities as well as a mountain side Golf Club within the initial 77 hectares being targeted by the firm.

Reyno said the company eventually wants to own a total of 230 hectares in the area as it seeks to build a world-class community for foreign retirees.

The project, which is on the opposite side of Puerto Gallera, occupies a 2.5-kilometer beachfront.

While Reyno expects property development to contribute significantly to the company’s bottom line, he believes that sports betting still has ample room for growth.

He said the firm’s venture with GMA Network unit GMA New Media which would involve the provision of technology needed to make horse racing betting available over the Internet and mobile phones, would boost the group’s revenues.

Reyno said a new company is in the process of being set up to serve as the corporate vehicle for the project.

He said the partnership with GMA New Media would expand the reach of betting and upgrade the multimedia coverage applied by the company.

Reyno said the possibilities of digital technology could also be applied in many sports like cockfighting.

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Filinvest to launch budget hotel chain

by Jenniffer B. Austria

[ manilastandardtoday.com ] May 30, 2011

Filinvest Development Corp., the holding company of tycoon Andrew Gotianun Sr., plans to launch its own chain of budget hotels starting this year.

Filinvest Development president Josephine Gotianun-Yap said the company would initially launch two budget hotels under the brand name “Fave,” a popular hotel chain in Indonesia.

Gotianun-Yap said the company had formed a joint venture partnership with a Singaporean firm, which will manage the hotel for the group.

The first two hotels in Metro Manila will target business travelers and local tourists and offer between 100 and 200 rooms with rates starting at $50 a night.

Filinvest Development currently has three hotel projects—Crimson Resort and Spa in Cebu, Crimson Hotel in Alabang and Quest Hotel also in Cebu City.

Several property companies earlier announced plans to roll out their owns brands of budget hotels.

Robinsons Land Corp., the real estate unit of conglomerate JG Summit Holdings Inc., said it would launch 30 budget hotels under the “Go Hotels” brand over the next five years, while Ayala Land Inc., the property unit of conglomerate Ayala Corp., has lined up five boutique hotels within the company’s commercial centers in Bonifacio Global City, North Trinoma of Quezon City, Ayala Alabang, Davao and Cagayan de Oro.

Eton Properies Philippines Inc., part of the Lucio Tan group of companies, is also in talks with a Singapore company for its planned businessman’s hotel in Quezon City, Cebu and Makati.

Filinvest Development has investments in real estate, financial services and sugar businesses.

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