MANILA, Philippines, February 6, 2014 – Philippine Long Distance Telephone Company (PLDT), the leading telecommunications provider in the Philippines, issued today its maiden SEC-registered peso retail bonds. After receiving overwhelming demand from both retail and institutional investors, PLDT exercised its oversubscription option and increased the total issue size from PHP10 billion to PHP15 billion.
The bonds, which have tenors of seven and ten years, were more than twice oversubscribed. The strong support enabled PLDT to price its bonds at the tightest end of its pricing guidance with the seven and ten year bonds priced at 5.2250% and 5.2813%, respectively, equivalent to 100 basis points over the relevant government benchmarks.
Of the PHP15 billion issue size, a total of PHP12.4 billion was allocated to the seven year tranche, and the remaining PHP2.6 billion to the ten year tranche.
“We are grateful for the support, trust and confidence that investors have shown in our maiden bond offering, which will partially finance our capital expenditures this year. With this issuance, PLDT is better positioned to further improve our network and services to our growing customer base.” said Napoleon Nazareno, PLDT President and Chief Executive Officer.
PLDT’s inaugural bonds were rated by Credit Rating and Investors Services Philippines, Inc. as ‘AAA’ with a ‘stable’ outlook, the highest on the scale. PLDT is rated investment grade by three international rating agencies, namely Moody’s Investors Service, Standard & Poor’s and Fitch Ratings.
Moody’s earlier said that PLDT’s local retail bond issue is credit positive as “it will help PLDT to term out its debt maturity profile and reduce foreign exchange rate risk.”
The bonds were listed at the Philippine Dealing and Exchange Corporation (PDEX) today. The listing aims to better facilitate secondary market trading for existing and potential PLDT bond investors.
First Metro Investment Corporation acted as Issue Coordinator for the bonds, and is also a Joint Lead Underwriter and Joint Bookrunner alongside BDO Capital & Investment Corporation, BPI Capital Corporation and The Hongkong and Shanghai Banking Corporation Limited.
Also joining the Joint Lead Underwriters in distributing the bonds are China Banking Corporation, Development Bank of the Philippines, RCBC Capital Corporation and SB Capital Corporation who acted as Co-lead Underwriters, including Land Bank of the Philippines who was a Participating Underwriter in PLDT’s inaugural bonds.