Cirtek reissues P545.2 million CPs

MANILA, Philippines — Cirtek Holdings Philippines Corp., a listed technology company, has reissued P545.2 million worth of commercial papers (CPs).

The CPs were listed on the Philippine Dealing and Exchange Corp. (PDEX) on Sept.1.

In a disclosure, Cirtek said it reissued the CPs under the company’s P2 billion CP program which was earlier approved by the Securities and Exchange Commission.

Proceeds from the offer will be used to partially retire its short-term obligations maturing in 2020 and to finance working capital requirements of  subsidiary Quintel USA as it takes part in the creation of a truly 5G enabled world.

Cirtek tapped Multinational Investment Bancorp. as sole arranger and lead underwriter for the transaction.

Philippine Ratings Services Corp. gave the commercial paper a credit rating of PRS A with a Stable Outlook.

A company rated PRS A (corp.) has an above average capacity to meet its financial commitments relative to that of other Philippine corporates while a Stable Outlook indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

Cirtek said last May it was launching a new generation of antennas designed for the rollout of 5G services in the US.

Michael Liu, president of Cirtek subsidiary Quintel USA Inc.,  said this would help

telcos expand their capacity amid growing communications and inter-connectivity demands.

Moving forward, Cirtek vice president Tony Callueng said Cirtek’s manufacturing

capacity would soon increase to 70 percent from 60 percent by the time the lockdown is lifted to comply with coronavirus disease 2019 or COVID-19 preventive measures.