PLDT Inc. returned to the international bond market after nearly two decades, raising $600 million to refinance maturing debt and partially fund capital expenditures.
The country’s largest telecom company said the $600-million 10-year and 30-year senior unsecured notes priced had a fixed coupon of 2.500 percent and 3.450 percent, respectively, and payable semi- annually.
PLDT said the bonds were priced at T+180 and T+195 with a re-offer yield of 2.566 percent and 3.495 percent.
The final order book was 17 times over-subscribed with the order book allocated predominantly to Asia, and the balance to Europe, reflecting the strong confidence investors have in the PLDT credit.
“We are extremely gratified by the response of the international bond market to our return. It has been 18 years since our last foray—we started our roadshow in Singapore on Sept. 11, 2001 and, if one recalls, we were soon faced with a global crisis then, just as we are today. For the better part of those years, the road was mostly smooth, but there were bumps along the way which made our journey difficult,” said PLDT chairman, president and chief executive Manuel Pangilinan.
“I believe we have now assembled possibly the best management team in our history, one that will allow us to realize the extraordinary potential of our business as an integrated telco. The market’s overwhelming welcome only serves to validate PLDT’s record of resiliency and patented financial discipline over the years. We are mindful that our performance in the coming years should match the expectations of the market that received us so warmly,” he said.
PLDT chief financial officer Anabelle Lim-Chua said the tremendous market response to the company’s bond offering was beyond what PLDT expected after such a long absence.
“We are grateful for the strong support from the international markets which will diversify our liquidity sources and lengthen our maturity profile,” Chua said.
“Our 30-year issue is the first for a Philippine corporate and confirms the strength of PLDT’s name and track record. While the proceeds will go mainly to refinancing our existing debt at lower interest rates, a portion will also be used to fund capital expenditures so that we can continue investing in network leadership and drive revenue growth,” she said.
PLDT said the net proceeds from the bonds would be used to refinance maturing debt obligations in the second half of 2020 and 2021 and prepay outstanding loans and partially finance capital expenditures.
The company has allocated more than P60 billion this year to finance its network expansion.
PLDT tapped Credit Suisse (Singapore) Limited and UBS AG Singapore Branch as joint lead managers and joint bookrunners for the transaction.
Latham & Watkins, LLP and Picazo Buyco Tan Fider & Santos acted as issuer counsel while Milbank LLP and SyCip Salazar Hernandez & Gatmaitan served as underwriters’ counsel for the transaction.