ROTARY CLUB OF MANILA JOURNALISM AWARDS
2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year
BusinessMirror A broader look at today’s business
EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR (2017, 2018)
DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS
PHILIPPINE STATISTICS AUTHORITY
DATA CHAMPION
JULY REMITTANCES HIT $2.85B, HIGHEST IN 2021 www.businessmirror.com.ph
■
Thursday, September 16, 2021 Vol. 16 No. 337
P. | | 7 DAYS A WEEK
1ST AUCTION OF RETAIL $ BONDS RAISES $866.2M B B D. N @BNicolasBM
T
HE Bureau of the Treasury raised on Wednesday an initial $866.2 million (P43 billion) during its rate-setting auction for its first-ever Retail Onshore Dollar Bonds (RDBs). The amount awarded was also an upsize from the initial total offer of $400 million for the five-year and 10-year tenors. The auction was more than twice oversubscribed, with total bids for the US-dollar denominated instruments amounting to $938.2 million. Broken down, the Treasury awarded $551.8 million for the 5-year RDBs and another $314.4 million for the 10-year tenor. During the auction, the 5-year and 10-year tenors fetched coupon rates of 1.375 percent and 2.25 percent, respectively. National Treasurer Rosalia V. de Leon expressed satisfac-
FOR the second year in a row, students have been forced to attend classes from home as a precaution against Covid-19. A common complaint from most students and parents is the intermittent Internet connection. In photo, Lorgerie Norico, Grade 10 student at Manila High, studies outside their house so she can get a better signal. NONIE REYES
C
B B C
@BcuaresmaBM
ASH sent home by Filipino migrant workers hit its highest level for the year in July, as overseas Filipino workers (OFWs) continued to defy expectations and retain altruistic trends amid the pandemic. The Bangko Sentral ng Pilipinas (BSP) reported on Wednesday
that remittances to the country hit $2.853 billion in July this year,
growing by 2.5 percent from its level last year. Broken down, the increase in cash remittances was due to the growth in remittances from landbased workers and sea-based workers, which rose by 1.6 percent to $2.308 billion; and 6.9 percent to $545 million, respectively. The strong July performance of remittances pushed the country’s cumulative cash remittances higher by 5.8 percent to $17.771 billion in the January-to-July period this year from $16.802 billion regis-
tered in the same period last year. According to the BSP, the growth in cash remittances in the first seven months of 2021 came mainly from the United States, Malaysia and South Korea. Meanwhile, in terms of country sources, the US registered the highest share of overall remittances at 40.4 percent in January to July 2021, followed by Singapore, Saudi Arabia, Japan, the United Kingdom, the United Arab Emirates, S “J,” A
DOF eyes P21-B budget to boost digitalization bid
T
HE Department of Finance (DOF) is seeking a higher budget for 2022 as it aims to implement modernization and digitalization programs that will help raise more funds amid the Covid-19 pandemic. In his presentation before the Senate Committee on Finance on Wednesday, Finance Secretary Carlos G. Dominguez III said the proposed budget for DOF for 2022 under new appropriations is P21.24 billion, or
32.7 percent higher than its approved appropriations this year of P16 billion. Despite the year-on-year increase, Dominguez was quick to point out that this is still 1 percent lower than its 2017 budget of P21.5 billion. “The increase in next year’s funding will be spent for our modernization and digitalization programs to enhance our revenue enforcement
C A
Covid cuts local currency bonds appetite in region
T
HE resurgence of Covid-19 cases in the region has dampened investor sentiment for local currency bonds in the second quarter of the year, according to the Asian Development Bank (ADB). In its latest Asia Bond Monitor report, the Manila-based multilateral development bank said almost all countries in the region experienced declines in long-term bond yields between June 15 and August 27. However, data showed outstanding local currency bonds increased 2.9 percent, faster than the 2.2-percent growth posted in the first quarter this year. “The emergence of Covid-19 variants and renewed mobility restrictions in some places are stifling the earlier momentum toward a sustained recovery,” said ADB Acting Chief Economist Joseph Zveglich Jr. “However, financial conditions in emerging East Asian economies remain stable, even as they cope with the continuing uncertainty.” Nonetheless, ADB said the Philippines and Singapore bucked the trend and managed to see bond yields increase for the 10-year government bond yields. The report said the 10-year yield rose in the
Philippines as the economy recorded 11.8-percent GDP growth in the second quarter this year, after posting a decline of 3.9 percent in the first quarter of 2021. “On August 10, the Bangko Sentral ng Pilipinas said that it had yet to consider reducing the reserve requirement ratio. Inflation in the Philippines also remains elevated, and while it has trended downward in June, it spiked again to 4.9 percent y-o-y [year on year] in August,” the report, however, stated. The local currency bond market weakened as overall stock grew 2.5 percent to $191.6 billion at the end of June. On an annual basis, the market expanded 25.1 percent. Based on the data, the composition of the country’s local currency bonds were mainly government bonds which accounted for 83.8 percent of the total stock. It posted a growth of 3.9 percent on a quarterly basis. The corporate bond segment’s decline steepened to 3.9 percent as market sentiment remained subdued due to mobility restrictions. Corporate bonds outstanding decreased to $31.1 billion. C A
S “DOF,” A
THE BROADER LOOK »A6-A7
OUTSOURCING SECTOR GOES AGAINST STRONG PANDEMIC CURRENT WITH RESILIENCE
PESO EXCHANGE RATES ■ US 49.9090
tion with the auction results, saying they hope to see the same level of demand for the RDBs for the rest of the offer period which is set to end on October 1. De Leon also said they expect more onshore retail investors for this offering. “[I am] happy with results of maiden offering for RDB. Rates reflect various consideration for pricing including performance of ROPs [US-dollar denominated bond issued by the Philippine government], liquidity and worries on US rates liftoff,” de Leon told reporters in a message. Asked whether the Treasury will shorten the offer period once it reaches its target amount, de Leon said they need two weeks “to throw the net far and wide to catch more.” However, de Leon did not say how much they are targeting to raise with its sale of RDBs.
NEW SC JUSTICE Newly appointed Supreme Court Associate Justice Japar Dimaampao takes his oath before Chief Justice Alexander Gesmundo. Dimaampao, who hails from Marawi City, is the second Muslim to sit as Supreme Court Justice. At 57, he is known to be the youngest justice to be appointed at the Court of Appeals at age 40. He was a former prosecutor and judge at Mandaluyong City Regional Trial Court. A Certified Public Accountant, Justice Dimaampao is a renowned professor, author and bar reviewer in taxation, civil law, commercial law and Shari’ah and Islamic Jurisprudence. Beside him at the oath-taking is his wife, Maria Gina Villapañe-Dimaampao. CONTRIBUTED PHOTO
■ JAPAN 0.4550 ■ UK 68.9343 ■ HK 6.4161 ■ CHINA 7.7520 ■ SINGAPORE 37.1540 ■ AUSTRALIA 36.5334 ■ EU 58.9325 ■ SAUDI ARABIA 13.3069
Source: BSP (September 15, 2021)