Month: November 2021

MANILA – Ayala group’s #BrigadangAyala continues to reach out to vulnerable communities greatly affected by the extended lockdown due to the COVID-19 pandemic following a similar group-wide effort last July.  

Dubbed Kaakay, the Ayala group kicks off a 12-week food distribution program in select locations across Metro Manila, targeting some 10,000 families. Kaakay comes from the Filipino word akay, which literally means to lead by the hand.    

“I personally find it hard to celebrate the Christmas season knowing we have fellow Filipinos barely able to eat.  None of us can solve the problem by ourselves, but each one in his own small way can help,” said Rene Almendras, Ayala Corporation’s Senior Managing Director and Public Affairs Group Head.    

“We hope to support breadwinners who lost their source of income or who has been on job rotation due to the pandemic. Many of them now have less than P200 pesos a day to survive on, and they are forced to stretch that to support a family of five. These are the people we want to help rebound by being their kaakay,” Almendras added.    

Each #BrigadangAyala Kaakay beneficiary receives a weekly supply of rice, fresh vegetables, canned goods, and bread that will cover four square meals for a family of five. The food distribution is scheduled every week from November 2021 to February 2022, and has a projected reach of at least 500,000 individuals.    

According to the Philippine Statistics Authority, the country’s unemployment rate rose to 8.9 percent—equivalent to 4.25 million Filipinos—in September 2021, the highest since January this year. Meanwhile, 6.18 million out of the 43.59 million employed Filipinos were considered underemployed. Some Filipino employees, who remain under skeleton workforce, are forced to stretch a day’s worth of salary to last for three days. Others settled for day jobs with incomes that are much lower than what they used to make pre-pandemic. These vulnerable groups, Almendras said, are the target beneficiaries of #BrigadangAyala Kaakay.         

#BrigadangAyala Kaakay also runs an inclusive eco-system of on-ground implementing partners like Virlanie Foundation, Caritas Manila, National Council for Social Development, and host barangays, while boosting the recovery and growth of local businesses by sourcing goods from rice farmers in Isabela (covering Regions 2 & 3), and vegetables from Benguet and CAR-based farmers. In addition, the bread included for food packs is produced fresh by a group of urban poor mothers who trained under TESDA’s community-based bread-baking project through Virlanie Foundation, as well as The Bread Project PH, which produces mingo bread, which contains monggo and malunggay.     

“The Ayala Group through Ayala Foundation will provide food for 10,000 families for the next three months to help them get through the present difficulties and hopefully go back to regular working schedules or other means of livelihood thereafter. Working together with our business units and local communities for the good of the country is part of Ayala Foundation’s DNA. This is why #BrigadangAyala Kaakay provides us a wonderful opportunity to assist families through supplemental feeding. We hope that through this program, we are able to help thousands of Filipino families in a practical and meaningful way,” said Ruel Maranan, Ayala Foundation President.    

“Ayala has and will always be the Filipinos’ kaakay for the greater good. We live up to our purpose of improving lives by responsibly responding to the needs of all our stakeholders and make a lasting impact to communities, to our country, and to the environment. That’s Ayala’s core, a promise we strive to fulfill with every project and decision we make. In fact, Kaakay is not just an effort among Ayala’s business units. Even employees are chipping in from their own pockets and volunteering so we can do more and reach more people,” he added.  

#BrigadangAyala serves as the banner under which social development and corporate social responsibility initiatives across the Ayala group of companies is implemented. The initiatives covered under #BrigadangAyala range from disaster relief and response, assistance for public education, championing of social enterprises, and public health advocacy, among others.   

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For more information:

YLA ALCANTARA
Head, Brand and Reputation Management
Ayala Corporation
e-mail – alcantara.ypg@ayala.com

CEL AMORES
Head, Corporate Communications
Ayala Foundation
e-mail – amores.cr@ayalafoundation.org

MANILA — More than a year into the pandemic, award-winning creative Joey David Tiempo has yet to sit behind her new desk at the newly acquired headquarters of Octopus & Whale, a company she founded a month before a nation-wide lockdown was imposed last March.

“We bought an office. We bought new furniture. I never even sat on the chair we bought,” she said in jest.

When the pandemic hit, Tiempo said most of their clients had decided to cancel some projects and cut their budgets to funnel in funds to support their employees. “I thought instead of being a start-up, we would be an end-up,” she said. 

“But as with everything that comes your way, you turn it into an opportunity. When our clients started changing their plans, we thought why don’t we turn that around?” she said.

And they did. They helped their clients adapt to uncertainties, which is now what sets them apart from other creative agencies. Octopus & Whale has turned itself into an independent strategy and creative solutions company that services renowned brands like Belo, Bonchon, and Nestle Philippines. 

A member of Ayala Enterprise Circle, the newbie entrepreneur said her team learned business hacks from the webinars hosted by AEC, where seasoned business leaders and entrepreneurs are invited to speak.

Diego Buenaflor, the CEO of Ellana Cosmetics, is also one happy AEC member. His company sells clean, vegan, and cruelty-free products on several digital platforms and 60 stores across the country, the first being in Ayala Malls Trinoma in Quezon City.

“That location in Trinoma contributed a large amount of our revenue pre-pandemic,” he said.  “Even during the pandemic, they’ve been very supportive and understanding of the situation.”

As of October 31, 2021, Ayala Land has condoned rent amounting to P12.99 billion. During the first months of the pandemic, Globe and BPI also extended the grace periods of loan payments of SME clients.  

According to Buenaflor, his AEC membership enabled him to get a collateral-free loan from BPI, which he used to recalibrate his business and adapt to the new normal.

At AEC’s 1st Anniversary Celebration held Friday, Ayala Corporation Chairman Jaime Augusto Zobel de Ayala lauded the stories of Tiempo and Buenaflor, who both adapted their businesses with agility. 

Zobel, who is the mind behind AEC, also highlighted the importance of having a platform of cooperation among businesses, which is what AEC offers.      

“In times like this, I think cooperation and help are much needed words that have to become part of our vocabulary. All of us have to come out of this well, and our whole world, the system we live in, we needed to succeed. And that now involves us holding hands a bit more, cooperating a bit more, not seeing each other as competitors but as allies and friends,” Zobel said. 

“We’re all in this together. We all have to come out of this together. And it’s a good time for all of us to work together,” he added.  

In his keynote address, DTI Secretary Ramon Lopez also lauded MSMEs, which comprise 99% of the Philippine economy, for persisting and working together amid headwinds.

“Now that we are well on our way to a new year, and as the economy begins to recover, DTI strengthens its commitment to Micro, Small, and Medium Enterprises—in partnership with the Ayala Group of Companies’ pledge of upskilling, connecting, and enabling them to soar higher in many years to come,” he said.

And as Tiempo aptly put in her anecdote, AEC has been the perfect platform for budding entrepreneurs to upskill, connect, and enable one another. 

“We’re kind of like a tiny boat in the big sea. In the big sea, you don’t know what’s out there. It’s nice to see other ships along your journey sailing with you. I think as part of AEC community, we can all reach out to one another and learn from one another. That means a lot for a small entrepreneur like me,” she said.

AEC is an exclusive membership program for SME customers and partners of Ayala Group. It offers programs and benefits to help enterprises develop new skills of their employees, forge strong connections within this diverse network of fellow-members and partners, and, ultimately, provide a solid platform for businesses to scale and prosper. 

Visit http://ayalaenterprisecircle.com/ for details on how to become an AEC member.

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For more information:

YLA ALCANTARA
Head, Brand and Reputation Management
Ayala Corporation
e-mail – alcantara.ypg@ayala.com

Manila, Philippines: AC Logistics Holdings Corp. (AC Logistics) and Glacier Megafridge, Inc. (GMI) have signed a joint venture agreement to construct and operate a cold storage facility in Cagayan de Oro.

GMI is one of the largest cold chain storage and logistical services provider in the Philippines. The company provides integrated cold chain operations including cold storage warehousing, blast freezing, inventory management, transport management, distribution, and logistics.

Arturo C. Yan, GMI President and CEO shares, “We envision a closed loop corridor that preserves and prolongs shelf life of both local and imported meat and poultry, fish catch and farm produce from traders, manufacturers and producers in and around the region. This facility that we shall soon be operating in Cagayan de Oro dovetails with our objectives of bringing facilities closer to key sources of food, providing a prospect of better incomes for farmers and fishermen and providing safe, secure and sufficient products at stable prices to consumers.”

Ayala Corporation President and CEO Fernando Zobel de Ayala adds, “Food safety and security are top concerns for many Filipinos while limited market access and low incomes have kept generations of food producers struggling. I am delighted at the prospect of the Ayala group having a direct positive impact on our country’s food security through this partnership with GMI. This aligns perfectly with our group’s sustainability thrusts and with the UN’s sustainable development goals”.

There is a shortage in capacity to meet the growth in the country’s cold storage needs for food production and consumption. The current need to keep and preserve temperature-sensitive vaccines and other healthcare products in cold storage facilities exacerbates the shortfall.

“We are grateful to Mr. Yan for allowing us to partner with him as we believe his knowledge and experience in the industry is very important. This maiden venture into cold chain for AC Logistic embodies our aspiration to help meet our country’s need for these types of facilities and services. Cold storage and delivery capabilities in the AC Logistics group will open synergies with our various operating companies. It will enable us to better serve our country’s growing need for logistical cold chain service delivery in present and emerging industries and business ecosystems.” said Rene D. Almendras, AC Logistics President and CEO.

A groundbreaking ceremony for the cold chain facility was held on November 18, 2021, at Tablon, Cagayan de Oro. It is strategically situated to service the needs of various local and multinational companies in Northern Mindanao. The facility is expected to commence operations in the latter part of 2022 and is envisioned to be an integral part of the supply chain of several companies and a key facility to support the region’s development.

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AC Logistics is Ayala Corporation’s wholly owned subsidiary for investments in the logistics sector.

Glacier Megafridge Inc. is one of the largest cold chain storage and logistical services provider in the Philippines. The Company provides integrated operations including cold storage warehousing, blast freezing, inventory management, transport management, distribution, and logistics.

For further inquiries, contact:

Joseph Anthony M. Quesada
quesada.jam@acinfra.com.ph
AC Logistics

Manila – Last November 6, AC Health began its rollout of COVID-19 vaccinations among the pediatric population for minors aged 12 to 17, following the approval and release of interim operational guidelines set by the Department of Health (DOH).

Vaccine brands Pfizer and Moderna have secured the Emergency Use Approval (EUA) for minors through the Philippine Food and Drug Administration (FDA). The vaccination process is similar with the adult group however, minors must be accompanied by a parent or guardian and present additional documents required by the DOH.

COVIDShield, AC Health’s COVID-19 vaccination program, expanded its scope to include minor dependents of the COVIDShield-registered primary employees of the Ayala Group and other partner companies. Vaccinations for the pediatric population were done across 11 vaccination sites in key areas around the country, including NCR and selected provincial sites. As of November 14, AC Health has vaccinated almost 4,000 children aged 12-17 years old across these sites.

“With an adequate supply of vaccines in the country, AC Health is proud to support the national vaccination program by expanding our COVIDShield vaccinations to include the pediatric population. We recognize that our children have likewise been deeply affected by this pandemic. Aside from protection from this deadly virus, vaccinating eligible minors allows them to safely interact with other people and brings them one step closer towards navigating this new reality,” said AC Health President and CEO, Paolo F. Borromeo.

Minors are among the vulnerable group with the risk of contracting COVID-19 infection. The DOH is targeting to vaccinate 80% of the eligible pediatric population by the end of the year.    

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For more information, contact:

CHACHI MORENO, M.D.
Strategy and External Affairs Manager
Zodiac Health Ventures, Inc.
E-mail: moreno.fmm@achealth.com.ph

Manila, Philippines: AC Logistics Holdings Corp. (“AC Logistics”), a wholly owned subsidiary of Ayala Corporation, signed an Investment Agreement with Mr. Alberto D. Lina (“Mr. Lina”), Air 21 Holdings Inc. (“AHI”), Airfreight 2100, Incorporated (“AIR21”), Air 2100, Inc. (“AIR21 Subic”), U-Freight Phils., Inc. (“U-Freight”), U-Ocean, Inc. (“U-Ocean”), Cargohaus, Inc. (“CHI”), LGC Logistics, Inc. (“LGC”), Waste & Resources Management, Inc. (“WARM”), and Integrated Waste Management, Inc. (“IWMI”) for the acquisition of a 60% interest in AHI, subject to the satisfaction of closing conditions precedents.

AHI is a holding company owned by Mr. Lina which will have controlling interests in eight operating companies under the AIR21 Group that are engaged in a broad range of logistics services that include express door-to-door service, international and domestic freight forwarding, warehousing and waste logistics management. 

“The partnership with AHI gives AC Logistics an end-to-end logistics platform that is capable of serving the diverse supply chain requirements of high-growth industries and complements Ayala’s initial foray in logistics through Entrego. We are delighted to have this opportunity to work with the Lina family”, said Fernando Zobel de Ayala, Ayala Corporation President and Chief Executive Officer.

Mr. Lina, Founder and Chairman of AHI welcomes the partnership with AC Logistics. “Ayala’s businesses have proven leadership in their respective industries. The management expertise from the Ayala group combined with our extensive experience in logistics will be transformative not just for our group but for the industry as well,” said Mr. Lina.

This investment allows AC Logistics to participate and service the needs of growing and evolving industries and ecosystems. The company’s goal is to offer a full range of logistics services to more clients and to provide competitive services by leveraging on the strengths of companies in its portfolio.

The pandemic disrupted the supply chain and underscored the need for a more robust and integrated logistics network across the country. Warehousing facilities suited to the needs of critical industries coupled with investment in technologies that drive operational efficiencies are critical to deliver better services across the supply chain and to spur faster economic recovery.

“The decision to enter the logistics sector was a deliberate move on our part. We have been looking at the ecosystem in the past, carefully studying the opportunities where we can invest and make a difference. The supply chain disruptions and lockdowns we faced in 2020 strengthened our conviction in investing in the logistics sector, which we started back in 2017. More than ever, logistics is a critical component of trade, particularly as we recover from the effects of the pandemic. We are very excited to improve and redefine practices with the use of new technology and with the needs of Filipinos at the core of our aspirations,” said Rene D. Almendras, President of AC Logistics.

AC Logistics aspires to become a world class logistics player in the country with digitally empowered end-to-end logistics capability similar to what is now available in other countries.

BPI Capital Corp. and Fortman Cline Capital Markets Ltd. acted as financial advisors for AC Logistics and AIR21 Group, respectively.

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AC Logistics is Ayala Corporation’s wholly owned subsidiary for investments in the logistics sector.

Air 21 Holdings, Inc. (AHI) is the holding company of Mr. Alberto D. Lina that will consolidate ownership stakes in the various operating subsidiaries of AHI, namely, Airfreight 2100, Incorporated, Air 2100, Inc., U-Freight Phils., Inc., U-Ocean, Inc., Cargohaus, Inc., LGC Logistics, Inc., Waste & Resources Management, Inc., and Integrated Waste Management, Inc. (“IWMI”).

For further inquiries, contact:

Joseph M. Quesada
quesada.jam@acinfra.com.ph
AC Logistics

Antonio L. Tañada
tanadatony@yahoo.com
Air 21 Holdings Inc.

MANILA – Ayala Corporation’s (“AC” or “Ayala”) foreign subsidiary, AYC Finance Limited, signed today a 10-year Social Bond through private placement by the International Finance Corporation (“IFC”) amounting to $100 million (the “Social Bond”), which will be used for the sustainable and resilient growth and capacity building of the Group’s healthcare arm, Ayala Healthcare Holdings, Inc. (“AC Health”). The Social Bond will be unconditionally and irrevocably guaranteed by AC.

The issuance marks the first social bond earmarked for healthcare-related purposes in the Philippines.

“The pandemic exposed the massive underinvestment in the country’s healthcare system, reinforcing our thesis for entering the sector six years ago. The Social Bond supports our strategic priority to scale up AC Health as a new growth platform, underpinned by its commitment to uplift the quality and access to preventive care in the country,” said Fernando Zobel De Ayala, Ayala President and CEO.

“The issuance will strengthen Ayala’s ESG financing capabilities and support growth for businesses that can make concrete social contribution, particularly in the healthcare industry. We look forward to a long-term partnership with IFC in providing quality, and accessible health care for all Filipinos,” said Alberto de Larrazabal, Ayala Chief Finance Officer and Chief Sustainability Officer.

The transaction will be settled in January 2022 based on the prevailing base rate plus a certain spread, subject to the completion of the conditions precedents set forth by IFC. The Social Bond Program by IFC aligns with the Social Bond Principles and Social Loans Principles published by the International Capital Market Association. Sustainalytics was engaged to provide a second party opinion on the Social Bond Framework.

“Addressing health gaps in the Philippines is a critical challenge that has been amplified by the COVID-19 pandemic,” said Rana Karadsheh Haddad, Regional Industry Director, Manufacturing, Agribusiness and Services, Asia and the Pacific at IFC. “Our investment in this social bond from our long-standing client, the Ayala Group, will help strengthen the Philippines’ healthcare system at a crucial time while also helping to develop the market for social bonds, which is becoming an important tool for helping the private sector to manage the socioeconomic impacts of the pandemic and build resilience against future shocks.”

In 2018, Ayala Group deepened its commitment to the social, economic, and environmental well-being of the Filipino by being more deliberate and purposive in identifying areas where it can contribute substantially and help solve global issues. Ayala identified 11 Sustainable Development Goals that are at the heart of its businesses—including good health and well-being for AC Health—with the goal of bridging the Filipino to the year 2030.

Ayala announced last October its commitment to achieve net zero greenhouse gas emissions by 2050, aligning its business strategy with the Paris Agreement’s goal of limiting global warming to 1.5°C compared to pre-industrial levels. It is the first Philippine conglomerate to make such a commitment.

Growing the Healthcare Network  

AC Health’s vision is to build an integrated healthcare ecosystem focused on improving healthcare for all. This commitment is a testament to the Ayala Group’s long-standing purpose of improving lives and promoting sustainable development and growth for the Philippines. 

Since its inception in 2015, AC Health has gone a long way in addressing the fundamental gaps in accessibility, affordability, and quality of healthcare. AC Health has built an ecosystem that caters to the various healthcare needs of Filipinos.   

AC Health’s portfolio comprises Generika, a chain of over 700 drugstores that offer quality and affordable generic medicines; Healthway Philippines, a network of primary, multi-specialty, and corporate clinics; the QualiMed Health Network, which operates multi-specialty clinics, a stand-alone ambulatory surgery center, and full-service hospitals; and HealthNow, an all-in-one healthcare app that offers telemedicine consultations, online medicine ordering and delivery, and clinic and diagnostic testing booking. AC Health also has medicine importation and distribution arms, I.E. Medica Inc. and Medethix Inc. (“Medethix”).  

Last July, AC Health officially broke ground for the construction of Healthway Cancer Care Center, the Philippines’ first dedicated specialty cancer hospital. The 100-bed facility, which is expected to be completed in July 2023, will be equipped with 20 chemotherapy chairs, 4 operating theaters, and state of the art diagnostic and therapeutic equipment, optimized for cancer screening, diagnosis, and treatment. AC Health has partnered with Varian-CTSI, a leading oncology service provider, to develop and operate the Healthway Cancer Care Center.   

Leading the Ayala Group’s COVID-19 Response  

When the pandemic struck the Philippines, AC Health proved to be a partner in nation-building by leading the Ayala Group’s COVID-19 response initiatives. It rallied its business units to work closely with the DOH, IATF, and local government units in implementing protocols across the Ayala Group and spearheading key milestones, from converting Qualimed sites into COVID-19 referral hospitals, capacitating 8 RT-PCR testing labs, to securing vaccines for employees and other stakeholders.    

AC Health also helped secure 1 million doses of COVID-19 vaccines for the Ayala Group via tripartite agreements with the government. To date, it has administered over 570,000 doses of the COVID-19 vaccine to recipients from various LGUs, the Ayala Group, and partner companies across its 25 vaccination sites nationwide.   

Medethix, a member of the AC Health group, announced last week its order of 300,000 treatment courses of Molnupiravir, the first oral antiviral medicine to be authorized for the treatment of mild-to-moderate COVID-19 infection. Molnupiravir is expected to democratize COVID-19 treatment due to its affordable price. It will also greatly help ease the burden to the country’s healthcare system by providing an additional treatment option to prevent hospitalizations and deaths. 

“AC Health’s vision is to build an integrated and seamless ecosystem of healthcare. We are proud that this vision has resonated with many stakeholders, including IFC. We are delighted to be partnering with IFC which has been an advocate for affordable and accessible healthcare in developing markets around the world. At Ayala, we truly believe that Filipinos deserve better healthcare, and this social bond will be instrumental to AC Health as we scale-up our services beyond this pandemic,” AC Health President & CEO Paolo Borromeo said.

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For more information:

YLA ALCANTARA
Head, Brand and Reputation Management
Ayala Corporation
e-mail – alcantara.ypg@ayala.com