Economy: Policy rate stays at 4%. The monetary board of the central
banks yesterday maintained the key policy rate at 4% for overnight
borrowing (reverse repurchase) and 6% for overnight lending (repurchase).
SDA rate was also unchanged at 2.5%. Reserve requirement ratios were
held steady as well at 20%. The decision was based on indications of
continued subdued inflation. The central bank also noted that domestic
demand remains stable, supported by private household and capital
spending as well as strong business confidence. They also see ample
liquidity and planned higher public spending will support economic growth
in the coming months.
Utilities: PHP12.5b Manolo Fortich commences construction. Aboitiz
Power Corp.'s (AP-HOLD) unit, Hedcor Bukidnon Inc., just kicked off the
construction of the 68.8MW Manolo Fortich hydro facility project worth
PHP12.5b in Bukidnon. As laid down by the company, the project was
designed to be two cascading plants: the first phase will be of 43.4MW
capacity; while the second phase will have 25.4MW capacity. The two
phases of the Manolo Fortich hydropower facility are targeted to be on
stream by 2017 to 2018.
Utilities: SCPC seeks ERC approval for PSA. San Miguel Corp's (SMCNot
Rated) energy arm, SMC Consolidated Power Corp. (SCPC), and
Tarlac Electric II Cooperative (Tarelco II) have asked the Energy
Regulatory Commission to approve their 10-year power supply agreement
in which SCPC will supply Tarelco II with 15,000 kW of capacity from the
2×150MW coal-fired power plant in Limay, Bataan. The power plant is still
under construction and the target commercial operations date is in August
2016. The SCPC’s baseload rate that will be charged to Tarelco amounts
to PHP4.6/kWh.
Mining: APX acquires Itogon mine. Apex Mining Co Inc (APX – Not
rated) disclosed it has signed an agreement to acquire 24.5b shares of
Itogon Suyoc Resources Inc (ISRI) representing 98% ownership interest in
the company. The acquisition will expand APX’s mining business as it
takes over ISRI’s mining claims and mill and production facilities in Sangilo,
Itogon, Benguet. APX will infuse at least PHP238m in new equity in ISRI to
pay down debts and reopen its mining operation in Itogon.
- Maybank ATR
