PLDT starts offering P15-B retail bonds today

MANILA, Philippines - Dominant carrier Philippine Long Distance Telephone Co. (PLDT) starts offering retail bonds to investors today after getting the green light from the Securities and Exchange Commission (SEC) to sell debt papers amounting to as much as P15 billion.

PLDT would offer the seven-year bonds due 2021 carrying a coupon rate of 5.2250 percent per annum and the 10-year bonds due 2024 with a rate of 5.2813 percent per annum until Jan. 30.

The bonds would be issued in minimum denominations of P50,000 each and in integral multiples of P10,000 thereafter.

First Metro Investment Corp. (FMIC) is acting as issue coordinator and serves as joint lead underwriter and joint bookrunner together with BDO Capital & Investment Corp., BPI Capital Corp., and The Hongkong and Shanghai Banking Corp. Limited.

The issuers may at its discretion close the offer period before Jan. 30.

PLDT said it intends to list the bonds that may be sold and traded only in the Philippines on the Philippine Dealing and Exchange Corp. on issue date.

Proceeds of the fund raising activity would be used to partially finance PLDT’s capital expenditure and at the same time refinance some of its existing obligations which were utilized in relation to service improvements and expansion projects.

PLDT president Napoleon Nazareno earlier said the company is spending P29 billion for its capital expenditures this year after recently completing a P67.1 billion network modernization program.

PLDT’s inaugural bonds were rated by Credit Rating and Investors Services Philippines Inc. (CRISP) as ‘AAA’ with a ‘stable’ outlook, the highest on the scale due to its dominant market leadership, strong historical financial performance and excellent management and governance as key considerations for providing their rating.

PLDT is rated investment grade by Moody’s Investor Service, Standard & Poor’s, and Fitch Ratings.