PLDT to raise up to P15-B via fixed-rate bonds
MANILA, Philippines - Phillippine Long Distance Telephone Co. (PLDT) is planning to raise as much as P15 billion in the first quarter of 2014.
PLDT corporate secretary Lourdes Rausa-Chan said the telco giant will issue a combination of 7- and 10-year fixed rate bonds in the aggregate principal amount of up to P10 billion with an over-subscription option of up to P5 billion.
PLDT filed an application for registration of the fixed rate bonds with the Securities and Exchange Commission (SEC).
The proposed bonds will be listed on the Philippine Dealing and Exchange Corp. (PDEX).
Rausa-Chan said the proceeds will be used to partially finance its capital expenditures and pare down its debt.
PLDT is allocating around P29 billion for capital expenditures next year.
"The net proceeds of the said bond issuance shall be used to finance capital expenditure and/or refinance existing obligations the proceeds of which were utilized for service improvements and expansion," she said.
PLDT's gross debt stood at $2.52 billion as of end-September, with maturities spread out until 2022. Around 58% are fixed-rate loans, and the rest are floating rate loans with an average interest cost of 4.54%.