Stock News 2012: BDO ready to tie up with other banks for PPP projects

Asian Development Bank, ADB Loan Disbursement Handbook, http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf (Photo credit: Wikipedia)Sy-owned Banco de Oro Unibank, the country’s largest bank, is prepared to tie up with other banks and raise up to $1 billion to finance various projects under the government’s Public-Private Partnership (PPP) program.

 BDO chairperson Teresita Sy-Coson said while the SM Group is not interested in directly participating in the PPP program, it intends to play an active role in financing the projects.

“The market here is very liquid. We can do a lof of these locally. We can do a syndication of up to $1 billion (peso-denominated). It will show confidence in the project,” Coson said during a PPP seminar held at the SMX Convention yesterday as part of the parallel activities of the 45th Asian Development Bank Board of Governors annual meeting.

She said that as a bank, BDO would be able to fund a lot of the companies that would be participating in the government’s PPP projects.

Asked which banks, BDO can partner with for the $1 billion syndicated loan, Sy said these may include the other big banks in the country.

“We’ve always partnered with other big banks such as Metrobank, BPI, Security Bank, Chinabank and RCBC. For the government banks, these are the Development Bank of the Philippines and the Land Bank of the Philippines,” Sy told The Star on the sidelines of the forum.

She said the terms of the loan could be as long as 15 years.

Public Works Secretary Rogelio Singson welcomed Sy’s offer, saying that this would help construction companies and many other private contractors.

The government’s PPP Center earlier announced that the Aquino administration plans to accelerate the implementation of its PPP program by bidding out eight to 16 projects this year.

The list of 16 projects includes the P900-million Vaccine Self-Sufficiency Program of the Department of Health; the P25-billion Metropolitan Waterworks and Sewerage System New Water Supply project; a P20.18-billion North Luzon Expressway-South Luzon Expressway Connector Road; a P10.15-billion Mactan Terminal 2 Airport Development; and the P8-billion New Bohol Airport.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=802924

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Stock News 2012: FLI allots P5 B for Cebu BPO project

PBCom Tower, the tallest skyscraper in the Philippines, at the heart of Ayala Avenue in Makati City. (Photo credit: Wikipedia)
Gotianun-led Filinvest Land Inc. (FLI) is pouring in P5 billion to convert a 1.2 hectare property in Cebu into a modern office complex catering to the business process outsourcing (BPO) sector in the area.

FLI president Joseph Yap said the complex, which would rise on a lot that used to be occupied by the Bagong Buhay Rehabilitation Center and the Cebu City Treatment and Rehabilitation Center in Salinas Drive, Lahug, would comprise four buildings which are expected to provide an additional 87,000 square meters to its office portfolio when completed.

The company is spending P640 million to construct the first building.

Yap said the company remains bullish on the BPO sector and is rapidly expanding its office portfolio to meet the needs of the industry.

By 2012, FLI will have an office portfolio of over 178,000 sqm in terms of gross leasable area, making it one of the biggest office landlords in the country. The figure is expected to increase further to 371,000 sqm by 2016 or 108 percent higher.

As of the end of 2011, FLI’s BPO office building portfolio had over 170,000 square meters of gross leasable area (GLA) from 12 buildings in Northgate Cyberzone in Filinvest Corporate City in Muntinlupa City and PBCom Tower in Makati City.

At Northgate Cyberzone, another building is currently under construction and would add close to 20,000 square meters of GLA in the first half of 2013, while a 14th building is targeted to break ground within the year with a GLA of 13,000 square meters.

Vector Two, which was completed in the fourth quarter of 2011, is fully taken-up and has been turned over for tenant fit-outs.

Aside from this, FLI is constructing a five-story building along EDSA across the Asian Development Bank building, and it is expected to be completed within the year.

Cebu has become one of the major hubs for FLI projects. It is currently developing the 50.6-hectare Citta di Mare in the South Road Properties

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801979

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Stock News 2011: Swiss Reinsurance to insure $250-million trade financing of ADB

Image via Wikipedia
s part of an innovative agreement to boost exports and imports in developing Asia, re-insurance giant Swiss Re will insure $250 million of trade finance conducted via the Asian Development Bank’s (ADB) trade finance program.

The move marks the first time that the Swiss Re Group, through its commercial insurance unit Swiss Re Corporate Solutions, has provided insurance via a trade program run by a multilateral development bank and also the first time ADB’s Trade Finance Program has offset risk with a private insurance company.

Asia’s economy is growing rapidly, but that is largely due to the exporting prowess of a handful of countries led by the People’s Republic of China, along with a few others such as the Republic of Korea and Singapore.

Many other Asian nations, by contrast, find it difficult to export or import key goods because they struggle to get the trade finance they need from international and local banks.

To fill that gap, the ADB’s Trade Finance Program provides guarantees and loans to banks to enable them to provide trade finance, particularly in so-called frontier economies.

http://mb.com.ph/articles/325896/swiss-reinsurance-insure-250million-trade-financing-adb