Philippines-based telecom giant PLDT, formerly known as the Philippine Long Distance Telephone Company, has announced that it raised around $600 million in a fully-online investment roadshow.
The telco revealed that it will use the funds to refinance its existing loans and also pay for network upgrades.
PLDT announced that it has set the terms of its 10-year and 30-year bonds—the latter representing a landmark issuance for a non-government entity in the Philippines. The notes were priced at a fixed rate of 2.5 percent and 3.45 percent, respectively, and payable semi-annually.
Reportedly, it was the lowest ever coupon for a 10-year and 30-year issuance by a Philippine corporate.
PLDT chair and CEO Manuel V. Pangilinan said in a statement, “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.”
“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.”
He further revealed that the last time PLDT entered the bond market was 18 years ago.
The offering was arranged by UBS AG Singapore and Credit Suisse and investors across the globe showed interest. Reportedly, the offering was 17 times oversubscribed and the largest order book size reached $10.2 billion.
The issuance also saw interest from pension funds, banks, and insurance companies mostly from Asia.