Blue Finance, UBS arm eye PHL ‘blue economy’

By VG Cabuag @villygc & Jonathan L. Mayuga @jonlmayuga

THE Blue Finance Group and UBS Optimus Foundation UK announced a partnership to provide a loan facility focused on the marine sector; the facility providing an up-front, blended capital of $600,000 (about P33.32 million at current exchange rates).

A statement issued by the UBS foundation described its initiatives as “empowering” the marine protected-area network in the country to implement several “blue economy” revenue-generating initiatives while focusing on protecting and regenerating coral reefs, increasing marine biodiversity, and enhancing livelihoods.

“We are strong proponents of their holistic approach, which supports biodiversity and climate mitigation while improving the livelihoods of local communities,” UBS Foundation CEO Maya Ziswiler said.

“Our impact loan to marine protected area (MPA) projects in the Philippines showcases the financial viability of what will be a self-sustaining conservation model and highlights the impact potential of Blue Finance’s approach.”

“We believe in nature conservation with sustainable, long-term business models to address the biodiversity crisis in the long term. This innovative approach is transformative for MPAs and is setting a precedent for impact investment in marine conservation and economic development globally,” Blue Finance executive director and co-founder Nicolas Pascal said. Pascal added that “while more than 60 percent of coral reefs worldwide are under immediate threat, we have shown that [MPAs] are one of the best tools we have for protecting marine biodiversity.”

In 2020, Blue Finance created the Blue Alliance NGO with the support of the United Nations, the Global

DA-BFAR earns COA’S highest audit rating anew

THE Department of AgricultureBureau of Fisheries and Aquatic Resources (DA-BFAR) announced it has once again received the highest audit rating from the Commission on Audit (COA) for its 2022 annual audit report, signifying that the agency’s financial statements are presented in accordance with applicable financial reporting frameworks.

In its new report, the whole DA-BFAR has attained an “unqualified opinion,” a significant improvement from COA’s previous audit report in 2021 in which only the DA-BFAR Central Office was given the highest audit rating.

National Director =Demosthenes

R. Escoto said the state auditors’ rating reflects the DA-BFAR’s commitment to excellence and integrity in managing its financial assets. He also expressed his gratitude to the Bureau’s officials and employees for their hard work and dedication to the effective utilization of the agency’s funds.

“The unqualified opinion by the COA is a testament to how the Bureau upholds excellence and integrity in managing its funds, in the fulfillment of our mandates and in line with the directive of President Ferdinand R. Marcos Jr. of providing ef- fective and efficient services to Filipino fisherfolk to improve their lives and increase our fisheries production,” he said.

“It will inspire us to work tirelessly towards good governance, transparency, and accountability,” he added.

Director Escoto also stressed that the DA-BFAR will continue to improve its quality management system and collaborate with stakeholders to address the needs of the fisheries sector.

The comprehensive audit of the DA-BFAR’s accounts, transactions, and operations for the fiscal year 2022 was conducted under the leadership of State Auditor Lea T. Petero.

In the report, COA said the audit presented by the DA-BFAR was “sufficient and appropriate to provide a basis for our opinion.”

“In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the BFAR as of December 31, 2022, and its financial performance, changes in net assets/equity, cash flows, and the comparison of budget and accordance with International Public Sector

Actual Amounts for the year then ended Accounting Standards (IPSASs),” state auditors said.

Fund for Coral Reefs and the International Union for Conservation of Nature. The Blue Alliance manages the MPA network and related projects alongside local authorities in North Oriental Mindoro.

This island province in the western part of the Philippines encompasses the Verde Island Passage, recognized as a global shore fish biodiversity hotspot. This ocean channel supports more than two million people. The network currently comprises 12 MPAs, which together protects some 70 kilometers (km) of coastline and 52-square kms. of coastal marine ecosystems, including a U NESCO biosphere reserve. Currently, 30 rangers, community officers and managers are employed to implement core MPA activities.

This funding will allow Blue Alliance to enhance the management and protection of coral reef ecosystems, develop sustainable revenue mechanisms for the MPA network and contribute to the achievement of multiple UNDP Sustainable Development Goals. Blended finance unlocks commercial capital by combining it with philanthropic capital to improve project design and execution, enabling the projects to meet the investor’s criteria. The impact loan will be repaid through revenue streams such as nature-based ecotourism, blue carbon credits from mangrove conservation and small-scale aquaculture projects. The interest rate is linked to social and environmental performance, the greater the impact, the lower the interest rate, the foundation said.

The impact will be measured using recognized international standards for ecosystem integrity, species protection, livelihood outcomes including job creation, as well as gender equality and overall MPA management effectiveness. The funding will also support the development of innovative tools to measure impact, which can be applied to other MPAs in the future.

PHL’s September RTB issuance seen to raise $2M

THE Philippines could offer retail dollar bonds by September, with the national government eyeing to raise about $2 million as economic officials are set to entice investors from North America this week.

The plan has been disclosed multiple times by economic officials; but the timeline has been moved again and again due to market conditions, which include a favorable exchange rate.

Finance Secretary Benjamin E. Diokno said one of the priority agendas of the economic managers upcoming visit to the US and Canada is floating the planned offering of retail dollar bonds.

The economic team is set to fly to Toronto and New York this week.

“This is also a road trip for [National Treasurer Rosalia V. De Leon]. We are going to float dollar denominated bonds since there are interests from our fellow Filipinos to invest in retail bonds,” Diokno said in a recent news briefing.

“And also, we are going to explain to them the new Philippines. During the pandemic we opened up telecommunications, shipping, toll roads [and] airports. The outside world are [sic] not aware of those—that is the purpose of the roadshow,” the Finance

Secretary added.

De Leon said they are optimistic that they will be able to entice Filipino migrant workers in New York and Canada to invest in the retail dollar bonds since it only requires a minimum $200 as investment and it is exempted from any taxes.

De Leon noted that the target amount to be raised through the dollar retail bonds remains at about $2 billion.

“We are doing all the marketing now. If markets are favorable, [we can offer it in] September,” she said. This could be the first dollar-denominated retail bond offering under the Marcos Jr. administration. The national government raised around $1.6 billion through its maiden sale of retail dollar bonds in 2021. (Related story: https://businessmirror. com.ph/2021/10/04/retail-dollarbonds-sale-nets-1-6b-for-phl/)

As for the earlier disclosed plans to offer Euro-denominated bonds, Diokno said it would have to wait until next year.

“It would perhaps be next year, when the country is very much attractive [to investors],” he said.

Emmanuel Y. Arcalas

Jasper