4 banks keep ratings
GLOBAL debt watcher Fitch Ratings affirmed the ratings of four major Philippine banks and upgraded another one, mirroring the positive outlook on the country’s sovereign rating.
Fitch affirmed the long-term Issuer default ratings on government-owned banks Development Bank of the Philippines and Land Bank of the Philippines, Bank of the Philippine Islands, Metropolitan Bank & Trust Co., and upgraded the long-term issuer default rating of BDO Unibank Inc., the country’s biggest bank to BBB from BB+
“The IDRs and national ratings of DBP and LBP are driven by Fitch’s expectation of state support for the banks …,” it said.
Fitch said the sovereign would have a high propensity to provide extraordinary support to the two banks in times of need, in light of their full government ownership and quasi-policy roles as set out in their respective forming charters.
“The probability of state support is considered moderate overall, after taking into account the sovereign’s fiscal flexibility, as indicated by the sovereign IDR of ‘BBB-’,” it said. Julito G. Rada
Sulu Sea drilling up
The joint venture of Mitra Energy of Malaysia and Total E&P Philippines B.V. plans to drill an exploratory well in service contract 56 covering the South Sulu Sea by next year.
Mitra Energy said in its latest report it identified a portfolio of exploration prospects in addition to the discovered gas fields in SC 56.
“Total is planning an exploration well on the key Halcon prospect [expected to be drilled in 2017], for which Total will carry Mitra’s 25 percent interest up to a gross well cost of US$75 million,” Mitra said.
It said the discovered and future gas resources were expected to be either sold via pipeline to Sabah (Malaysia) or to a liquefied natural gas off-taker, probably through a floating LNG facility to be operated by Total.
Mitra holds a 25 percent interest in SC 56 in partnership with operator Total.
Four wells were earlier drilled in SC 56 by previous operator Exxon, resulting in the Dabakan and Palendag discoveries.
Exxon did not to pursue further development in 2011, claiming the reserves were non-commercial quantity.
Alena Mae S. Flores
8990 securitization
Mass housing developer 8990 Holdings Inc. plans to securitize up to P5 billion worth of receivables, which could be the largest private sector-led securitization since the passage of the Securitization Act in 2004.
8990 Holdings said in a disclosure to the stock exchange it hired China Bank Capital Corp. to arrange and underwrite the securitization of up to P5 billion of contract to sell receivables of 8990’s property development subsidiaries.
Under the proposed plan, 8990’s subsidiaries will sell up to P5 billion worth of contract to sell receivables to a special purpose company of China Bank Capital, which will then issue three tranches of asset-backed securities to investors.
The SPC will use the cash flows from the receivables to make principal and interest payments to the ABS investors until each tranche is completely paid in order of seniority.
“This is a trailblazing moment for 8990 as well as the mass housing sector,” 8990 president and chief executive Januario Jesus Atencio said. Jenniffer B. Austria
Lhuillier advocacy
Cebuana Lhuillier, the country’s leading microfinancial solutions provider, has officially started the disaster resilience road show in Baguio.
The first road show was held on April 8 at the Citylight Hotel in Baguio City where stakeholders from private and public sectors gathered to discuss key concepts about disaster preparedness and recovery.
Supported by the Insurance Commission and The Deutsche Gesellschaft für Internationale Zusammenarbeit, the program featured talks and presentations by Insurance Commission microinsurance division tepresentative Shayne Rose Bulos and by Cebuana Lhuillier Insurance Solutions general manager Jonathan Batangan.
“During the forum in January, we talked about how important collaborative effort is to build a disaster-resilient nation. We’ve already forged partnerships with various organizations on the national level. This time, through these road shows, we hope to reach out to and tap the local organizations,” Cebuana Lhuillier president and CEO Jean Henri Lhuillier said.