PSE taps P400-million loan

THE PHILIPPINE Stock Exchange, Inc. (PSE) is availing of a P400-million bridge financing with three local banks to fund its capital expenditure requirements.

In a regulatory filing, the operator of the country’s lone stock exchange said its board of directors on Wednesday authorized the tapping of the clean term loan from BDO Unibank, Inc., Metropolitan Bank and Trust Co. and Bank of Commerce.

Proceeds of the bridge financing will be released on a staggered basis, depending on the stock exchange’s need.

The loan will have a maximum term of four years and an interest rate of PDST R- 2 fixed on the date of drawdown. The PSE will make equal annual principal repayment with one-year grace period and semiannual interest payments.

Without going into details, the PSE said proceeds of the loan will be used “to fund the capital expenditure requirements of the exchange.”

In the first nine months, the bourse posted a 12.8% year-onyear increase in net income to P507.9 million from P450.2 million on lower expenses and higher income from other sources.

The PSE stayed in the black after slashing the cost of services by 11% to P232.7 million and growing income from other sources to P165.9 million. These offset the 7.5% drop in operating revenues.

The bourse generated revenues totaling P874.69 million, lower than last year’s P945.31 million, amid a subdued trading and fundraising activity on the market.

Shares in the PSE closed P3.80 or 1.49% higher at P259.60 apiece on Thursday. —