MANILA, Philippines - Dominant carrier Philippine Long Distance Telephone Co. has raised P6.2 billion from the issuance of fixed rate corporate notes to institutional lenders to refinance its existing debts.
PLDT corporate secretary Ma. Lourdes C. Rausa-Chan said in a disclosure to the Philippine Stock Exchange (PSE) that the notes were issued to a group of primary institutional lenders.
Rausa-Chan said the seven-year notes fetched 5.50 percent while the 10-year notes had a fixed yield of 5.9058 percent.
According to her, proceeds would be used to refinance PLDT’s existing debt.
“Proceeds from the said facility will be used to refinance PLDT’s existing debts in line with the company’s liability management initiatives to reduce financing costs and rationalize its debt maturities,” she added.
BPI Capital Corp. and First Metro Investment Corp. acted as the joint issue managers for the transaction.
PLDT’s profits slipped six percent to P28.7 billion in the first nine months of the year from P30.6 billion in the same period last year on the back of stiff competition and manpower reduction.
Consolidated service revenues of PLDT jumped 12 percent to P126.2 billion from P112.27 billion while total revenues surged 13 percent to P128.56 billion from P114.05 billion.
The decline in income in the first nine months of the year was due to the consolidation of the operating performance of Digital Telecommunications Philippines Inc. (Digitel).
The company spent P69.2 billion to acquire the stake of taipan John Gokongwei in Digitel. The transaction was closed in October last year after it was approved by the National Telecommunications Commission (NTC).
The company spent P1.8 billion for the manpower reduction program undertaken in the second quarter of the year.
Latest data showed that PLDT Group’s cellular subscriber base reached 68.6 million as of end-September. Subscribers of wireless arm Smart Communications Inc. stood at 25.6 million followed by Talk ‘N Text with 26.5 million, and Digitel’s Sun Cellular with 16 million.
Data revealed that PLDT’s wireless service revenues jumped 18 percent to P87.3 billion followed by fixed line service revenues that went up by five percent to P45.5 billion. Total broadband and internet revenues surged 30 percent to P17.6 billion.
Last September, the PLDT Group announced the completion of its P67.1-billion two-year network modernization program.