In a letter to the Philippine Stock Exchange, Ayala Corporation confirmed that its wholly owned subsidiary AC International Finance Limited (ACIFL) has arranged a US$100 million syndicated term loan facility with BNP Paribas, Standard Chartered Bank and ING Bank.
The purpose of the loan is to refinance ACIFL’s maturing loan obligations in 2004 and not to fund the acquisition of the 10.04 million shares of Globe Telecom that Ayala Corporation has agreed to purchase from DeTeAsia Holding GmbH.
Ayala Corporation has accepted the offer from DeTeAsia Holding GmbH (DT) to purchase 16,037,565 common shares of Globe Telecom, Inc. at P 680 per share.
Ayala has advised DT that it reserves its option to designate Globe Telecom Inc. or any of its affiliates or another affiliate of Ayala to purchase part of its Accepted Shares prior to the execution of the share purchase agreement.
The above information is being disclosed in accordance with the disclosure rules of the Securities and Exchange Commission and the Philippine Stock Exchange.
(Sgd) RENATO O. MARZAN
Managing Director & Compliance Officer
Ayala Corporation and Singapore Telecom International Pte. Ltd. have received late yesterday, 13 October 2003, from DeTeAsia Holding GmbH (DT) a new offer to sell DT’s entire shareholdings in Globe Telecom, Inc. The offer covers 37,674,681 common shares of Globe. The new offer however is not contingent upon all of the total number of shares offered being purchased by Ayala and Singtel.
Ayala and SingTel will evaluate DT’s offer and will revert to DT within 45 days with their decision in accordance with the rights of first offer among the three parties.
The above information is being disclosed in accordance with the disclosure rules of the Securities and Exchange Commission and the Philippine Stock Exchange.
(Sgd) RUFINO LUIS T. MANOTOK
Managing Director, Corporate Strategy
In a disclosure to the Securities and Exchange Commission and the Philippine Stock Exchange, Ayala Corporation announced that it will receive 63.375 million new common shares from Ayala Land, Inc. (ALI) in exchange for AC’s conveyance to ALI of a 2,340 sq. m. lot at Greenbelt, along Makati Avenue, Makati City. The issuance of the new shares was approved today by the Board of Directors of ALI.
The issuance by ALI of the new shares is in pursuance to an earlier resolution of its stockholders approving the authority to issue new shares in exchange for properties needed by the corporation for its development and landbanking activities. The exchange will enable ALI to consolidate its ownership of the 11-hectare Greenbelt property, currently undergoing the initial phase of a major redevelopment. A new site will be provided for a state-of-the-art Ayala Museum which is integral to the unique leisure environment being created in Greenbelt. The new museum, with over 6,000 square meters of floor space, is expected to be completed in early 2004.
In a special meeting of the board of directors and stockholders of Manila Water Company (“MWC”), Ayala Corporation agreed to subscribe to P310 million in new preferred equity shares to be issued by MWC. The shares, totalling P500 million, are part of a capital restructuring being undertaken by MWC.
Also approved in the meeting was MWC’s acquisition of the shares owned by one of its foreign shareholders, International Water (IWL) S.a.r.l. (formerly BEn MWSS Holdings Ltd.), a subsidiary of US-based Bechtel Corporation.
The capital restructuring and issuance of the new Shares will be implemented upon completion of MWC’s acquisition of the shares of IWL.
The giant replica of the solar system still dangles from the ceiling of the science classroom but it is no longer the centerpiece of learning at Sero Central School in Cotabato City, Maguindanao.
A few weeks ago, teachers and students of Sero Central and 30 other elementary schools across the country have begun viewing educational science videos requested through text and downloaded via satellite right into their won school rooms.
This classroom innovation is part of text2teach, the Philippine-based pilot of the Bridgeit Project which was launched in May by global partners Nokia, the International Youth Foundation, Pearson and the United Nations Development Programme. The project is led in the Philippines by Ayala Foundation and is managed and implemented nationwide by SEAMEO INNOTECH and the Department of Education. Technical support is given by Globe Telecom, Nokia Philippines, PMSI Dream Broadcasting System, and Chikka Asia.
Text2teach enables 5th and 6th grade teachers to introduce to their students more than 80 full-length science videos that bring to life key scientific principles. While the project does not intend to replace the need for traditional learning tools such as textbooks, it aims to give Filipinos as young as 10 years old a more informed understanding of science and technology through multimedia presentations. Proponents agree that a strong foundation in this subject can help bring progress to developing countries.
Eighty teachers from 40 schools in Cotabato City, Batangas, Laguna, Manila and Quezon City have already been trained to use the service. They have also been provided lessons plans that, while customized to include various text2teach videos, complement the national curriculum.
Changing attitudes
Since the project was introduced in elementary schools in June, teachers have begun to notice some changes in their pupils’ attitudes towards learning science. Accustomed to seeing only pictures in textbooks or drawings of well-meaning teachers, students are becoming more interested in the subject because of the videos. They ask questions after watching the videos and participate eagerly in classroom activities.
On the first day that Julie Latonero showed a science video to her class at the San Agustin Elementary School in Novaliches, Quezon City, the room was abuzz with excitement. “In fact, even before the installation of the text2teach program, the children were already looking forward to it” says Latonero. “They were very happy when they finally saw the video because they could now see how those animals look like in real life.”
Grade 5 teacher Olivia Regalado of Sto. Tomas Central Elementary School in Batangas has no problem getting students’ attention in her four science classes either. “They listen attentively and they are quiet. Before, only half of the class listen or answer my questions. Now when I say that we are going to know more about animals by viewing a video, their eyes light up.”
Moreover, the videos seem to help the students retain more knowledge from their lessons. Says 11-year old Ralph Dequiro, one of Regalado’s students: “Dati hindi po namin masyadong maintindihan yung sinasabi po ng teacher. Hindi namin matandaan kasi hindi namin nakikita. Pag sa video, madali pong maintindihan kasi nakikita namin yung nangyayari. (Before, we couldn’t understand the lesson. We couldn’t remember our lessons because we couldn’t visualize them. With the videos, it’s easier to understand because we see things as they happen).”
Even teachers claim to benefit from text2teach. Yolanda Gorrero of P.C. Hill Elementary School in Cotabato City notes: “It really helps a lot. It lessens our burden in teaching science because instead of preparing more teaching materials, we use the video clips.” She encourages other teachers in her school to use the science videos in their classes and hopes that a similar service will eventually be made for English and Filipino subjects.
For her part, Regalado says she has more time to study the flow of the next day’s lesson and develop interactive exercises. Since text2teach has already provided lesson plans, she can focus on preparing better materials for experiments and group activities.
For example, in addition to showing a video describing the different physical characteristics of animals, Regalado created picture cards of body parts that her students should match to the corresponding animals. On another occasion, she prepared riddles related to the lesson.
Text2teach may still be in its infancy but project partners are optimistic that it will achieve its intended outcomes and impact on teachers and students. It helps that the mobile communications and satellite technologies used by the project are able to surmount physical barriers such as geographic location. But a bigger factor is the enthusiasm that teachers and students have shown in embracing text2teach as way to improve their science education.
In the meantime, the UP National Institute for the Science and Mathematics Education Development (NISMED) and the UNDP are documenting and assessing the project’s implementation to determine whether the Philippine model could be replicated in other countries.
Says Ayala Foundation president Victoria P. Garchitorena: “Through text2teach, we hope to make a meaningful and sustainable contribution towards bridging the gap in the area of technology in elementary education.”
At the regular meeting of the Board of Directors of Ayala Corporation held today, 26 June 2003, the Board approved the declaration of a regular cash dividend of P 0.03 per share corresponding to the first semester ending 30 June 2003, to all outstanding shares of the Company’s capital stock as of record date 31 July 2003, payable on 21 August 2003.
The dividends will be covered by the unappropriated retained earnings of the Corporation of 31 December 2002. The Stock and Transfer Books of the Corporation will be closed for the transfer of shares from 28 July 2003 to 31 July 2003.
Manila Water Company has signed a US$30 million loan agreement with World Bank’s investment arm, International Finance Ltd. (IFC).
The agreement provides for favorable rates and re-payment scheme, including a 15-year loan duration and a 3-year grace period. This is Manila Water’s second major international loan after borrowing US$20 million from DEG (German Development Bank) last year. Both loans form part of the financing package that will be used to fund Manila Water’s capital investments in the next three to five years.
The IFC loan marks a significant event for Manila Water as it affirms the international community’s confidence in the Manila-based water utility company amidst present global uncertainties.
Manila Water president Antonino T. Aquino cited the support of IFC for the company’s infrastructure thrust and expressed appreciation for this vote of confidence.“This loan agreement is a manifestation of the meaningful and mutually rewarding relationship between these two institutions,” said Aquino.
IFC director for infrastructure Declan Duff noted: “By supporting this successful private water concessionaire, IFC hopes to send a positive signal to the market and to other governments about the benefits of private participation in infrastructure.”
Manila Water is one of the two concessionaires which were awarded in 1997 the right to operate the water service in Metro Manila. The company has since made significant improvements in service in terms of water quality and service availability throughout the east concession area. The company is an affiliate of Ayala Corporation, one of the largest and most established conglomerates in the region, with investments in the real estate, telecom and the banking sectors.
Science classes in elementary schools will soon experience the benefits of multimedia learning.
A new project called text2teach officially launched using the power of mobile technology to deliver rich educational content to teachers and students even in the most outlying areas of the country.
text2teach is the initial Philippine-wide pilot of Bridgeit, a global program developed jointly by Nokia, the International Youth Foundation (IYF), Pearson and the United Nations Development Programme (UNDP). The four organizations combined their expertise in technology, training, content, and processes to create an impact on the learning of young people.
In the Philippines, text2teach is spearheaded by Ayala Foundation in cooperation with the Department of Education and local partners Globe Telecom, Nokia-Philippines, SEAMEO INNOTECH, PMSI-Dream Broadcasting, and Chikka Asia.
text2teach enables teachers to use mobile phones supplied by Nokia to request more than 80 full-length videos provided by Pearson, each of which introduces and illustrates a key component of the Philippine science curriculum. Upon texting, the requested video will be sent via satellite to a digital recorder connected to a television in the teacher’s classroom. Each video’s interactive demonstration of science concepts and ideas is expected to benefit both teachers and students.
Explains Ayala Foundation president Victoria P. Garchitorena:
“The program will enable teachers to use digital technology to share and illustrate new ideas with their students. As a result students will have the opportunity to learn new skills, to participate actively in classroom lessons with their teacheres, and to learn and see more about the world around them.”
The project implementation will begin in June in the 5th and 6th grades of 40 schools in key areas including Quezon City, Batangas, Laguna and Cotabato City. Ayala Foundation has been tapped as the project leader in the Philippines to ensure that the program achieves its desired impact. Together with the Department of Education and SEAMEO INNOTECH, The International Youth Foundation has begun training 80 teachers to use the technology to benefit more than 10,000 students across the country.
Globe Telecom, Nokia-Philippines, PMSI-Dream Broadcasting, and Chikka Asia are providing technical support to meet the hardware, software and communication requirements of the program. The Philippines was selected as the pilot venue for Bridgeit because of its good telecommunications infrastructure, Filipinos’ good command of English, and the government’s focus on education as a means to overcome poverty.
Adds SEAMEO INNOTECH director Dr. Erlinda Pefianco: “text2teach has long-term benefits, since in addition to providing quality educational materials it will provide ongoing teacher training and development.”
A successful and sustainable implementation of text2teach will encourage Bridgeit partners throughout the world to develop similar cost-effective learning solutions globally. The Philippine pilot will provide a “blueprint” for replication program in other less developed nations.
At the launch, Ayala Corporation president and chief executive officer Jaime Augusto Zobel de Ayala II noted the program’s potential to bridge the digital divide by allowing learning materials to be disseminated equally among urban and rural schools.
Says Zobel: “While we cannot replace nor should we seek to the need for traditional learning materials such as textbooks, Bridgeit has opened new ways to improve learning opportunities for thousands of elementary school children throughout the Philippines through new technology. This gives us the opportunity to remake the face of education to help the poor, not only in our country, but in other developing nations as well.”
Now on its 41st year, Ayala Foundation renews its commitment to bridge business and society in order to eradicate poverty in all its forms. It is reaching out to thousands of Filipinos through programs in education, youth development, information technology, environmental concerns, and the arts and culture.
Established by businessman Col. Joseph McMicking and his wife, Mercedes Zobel, as the Filipinas Foundation, it was renamed Ayala Foundation in 1990 to emphasize its role as the social development partner of one of the country’s leading conglomerates.
At the heart of Ayala Foundation’s social development programs is the belief that Filipinos can help themselves rise from poverty given the opportunity and right mechanisms in place. This has led the foundation to develop and support projects that have a far-reaching impact on the lives of individuals and communities.
Poverty alleviation
One such project is the government’s poverty alleviation program, Kapit-Bisig Laban sa Kahirapan, or KALAHI. With Ayala Foundation coordinating the activities of various Ayala companies, some 200 families in Mandaluyong received a development package that included health services from Globe Telecom and Ayala Land, potable water from Manila Water, livelihood fund from the Bank of the Philippine Islands, and an Internet laboratory.
There is also the Mindanao Silk Weaving Project, a home-based program that trains women residents in Misamis Oriental in handloom weaving and gives them a revolving loan fund for business operations.
Even information technology programs can be designed to equip Filipinos with tools to improve their lives. For instance, Project Youth Tech and iLinK train high school students and teachers and provide a computer laboratory with free one-year Internet access from Globe Telecom. The Ayala Intel Computer Clubhouse allows young students to use its after-school facilities to explore their creativity.
Yet another way of bringing information technology to the grassroots level is the Barangay.Net Cebu Alliance, Inc., which computerizes basic local government functions.
In addition, Garchitorena explans that it is equally important to address what is called “poverty of spirit”. The Ayala Museum and the Filipinas Heritage Library to promote a greater understanding and appreciation of the country’s rich cultural heritage through exhibits, lectures, books, and online resources.
The foundation also created programs that aim to develop future leaders. The annual Ayala Young Leaders Congress now has 350 alumni from all over the country who are committed to creating positive changes in their own communities. Focusing on a much younger generation, the Center of Excellence in Public Elementary Education or Centex provides bright children from poor families an exceptional learning environment that empowers them with the value of service to others.
Forging new partnerships
Garchitorena says that a great part of the Ayala Foundation’s work has to do with networking. Partners are sought to extend the reach of its programs and help create innovative solutions to address poverty. On many occasions, it collaborates with other businesses and institutions in programs such as Children’s Hour, Tabang Mindanaw, La Mesa Reforestation Project, World Wildlife Fund, and Habitat for Humanity.
In celebration of its 41st anniversary yesterday, Ayala Foundation honored partners, donors, and sponsors and highlighted collaborative efforts with key institutions. For instance, it announced plans to enter agreements with publications to inform migrant Filipinos about social development programs in the Philippines and advise them on how to support these programs through Ayala Foundation USA.
The Mindanao Silk Weaving Project has coordinated with the Philippine Textile Research Institute and the Product Development and Design Center of the Philippines to upgrade the skills of its beneficiaries and help them market their products.
At the same time, Ayala Museum accepted donations and long-term loans of prized collections from its partners. These are the Fernando Zobel collection of modern art from the Ateneo Art Gallery, a portrait of Romana Suarez by Fernando Amorsolo and 60 oriental trade ceramics from the Zuellig Collection, and Rina Ortiz’s collection of 17th to 19th century Piña clothing.
Says Garchitorena: “Our heartfelt gratitude goes to all our funders, trustees, officers and staff, and to all our partners. We find strength in their generosity which has sustained us through the 41 years of service that Ayala Foundation has offered to the country.”
