PLDT eyes $600M from bond offering

AFTER almost two decades, PLDT Inc. returns to the international bond market with an offer of senior unsecured fixedrate notes priced at $600 million.

In a disclosure on Wednesday, the Pangilinan-led telecommunications giant said it would raise up to $600 million from its US dollar- denominated 10-year and 30-year dual-tranche offering, priced at T+180 and T+195, with a reoffer yield of 2.566 percent and 3.495 percent, respectively.

The firm said it has seen a strong response from foreign investors, particularly those in Asia and Europe, with the offering oversubscribed 17 times.

PLDT Chairman Manuel V. Pangilinan said the demand only mirrored investors’ confidence in the firm.

“We are extremely gratified by the response of the international bond market to our return. It has been 18 years since our last foray” into the market, Panglinan was quoted as saying in the filing.

“The market’s overwhelming welcome only serves to validate PLDT’s record of resiliency and patented financial discipline over the years,” he added.

Annabelle Lim- Chua, PLDT chief financial officer, said investors’ response was “beyond what we expected after such a long absence.”

Bulk of the proceeds would help refinance PLDT’s existing debt at lower interest rates. Another portion would be used to support its capital expenditures and strengthen its network infrastructure.

Credit Suisse (Singapore) Ltd. and UBS AG Singapore Branch are the joint lead managers and joint bookrunners for the transaction. Latham & Watkins LLP and Picazo Buyco Tan Fider & Santos acted as issuer counsel, and Milbank LLP and SyCip Salazar Hernandez & Gatmaitan acted as the underwriters’ counsel.

PLDT shares slipped by P3 or 25 percent to close at P1,220 each on Wednesday.