PLDT Offers Debut SEC-Registered Bonds

Manila—(PHStocks)—Philippine Long Distance Telephone Co. (PLDT, PSE: TEL) (NYSE: PHI) Philippine Long Distance Telephone Company (PLDT), the leading telecommunications service provider in the Philippines, has received approval from the Securities and Exchange Commission (SEC) to sell bonds with a base offer size of PhP10 billion, with an option for oversubscription of up to PhP5 billion. This will be PLDT’s maiden SEC-registered peso retail bond issuance.

The PLDT bonds carry a coupon rate of 5.225% per annum for the seven year bonds due 2021 and 5.2813% per annum for the ten year bonds due 2024, payable quarterly.

The bonds will be offered to the public from January 24 to 30, 2014, issued in minimum denominations of PhP50,000 each and in integral multiples of PhP10,000 thereafter.The issuer may at its discretion close the offer period before 30 January 2014. PLDT intends to list the bonds on the Philippine Dealing and Exchange Corporation on issue date. The bonds may be sold and traded only in the Philippines.

PLDT’s inaugural bonds were rated by Credit Rating and Investors Services Philippines Inc. (CRISP) as ‘AAA’ with a ‘stable’ outlook, the highest on the scale. CRISP cited PLDT’s dominant market leadership, strong historical financial performance and excellent management and governance as key considerations for providing their rating.

PLDT is rated investment grade by three international rating agencies, namely Moody’s Investor Service, Standard & Poor’s and Fitch Ratings.

The Company intends to use the proceeds of the bonds to partially finance its capital expenditure and refinance some of its existing obligations which were utilized in relation to service improvements and expansion projects.

At the end of 2013, PLDT was the most valuable Philippine listed firm, with total market capitalization of PhP576 billion.

First Metro Investment Corporation (FMIC) is acting 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 (HSBC).