SPC Power Corp Could Win Auction

SPC Power Corp., formerly Salcon Power Corp., reported yesterday that it was a step closer to winning the auction for the operation and maintenance service contract of the 650-megawatt (MW) Malaya thermal Power plant in Rizal.

Power Sector Assets and Liabilities Management Corp. (PSALM) President and CEO Emmanuel Ledesma, JR. said Salcon Power Corp., is the lone bidder and was able to submit a bid within the approved budget for contract. However, he clarified that the company was still subject to post-auction qualification.

According to another PSALM top official, the next stage would involve the evaluation of the authenticity and validity of the company’s documents.

20-year benchmarks saw renewed buying interest yesterday following the Bureau of the Treasury’s release of its Q4 regular auction schedule, in which the government announced that there would be no more regular bond supply in the 20-years for the rest of the year.

The government cut total issue size to Php90 billion as opposed to Php108 billion in Q3. In general, yields declined by an average of 2.5 basis points, with the long end and the belly of the curve dropping 3.7 and 4.1 basis points, respectively. The 20-year tenor bucket lost 0.1 basis point to 5.7419%.

The Philippine peso strengthened during yesterday’s trading session after the government reported a third monthly budget surplus for the year in August. The local currency picked up 15 centavos to close at 41.870.

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