Philippine Long Distance Telephone Co. (PLDT) has raised P5 billion from a recent issuance of fixed-rate notes to finance capital expenditures.
Because of strong investor response, PLDT said it had to upsize the issue amount to P5 billion from the original target of P3 billion.
PLDT, a unit of Hong Kong-based First Pacific Co. Ltd., offered 5-, 7- and 10-year notes to 17 financial institutions, including insurance companies; large commercial, trust and savings banks; and retirement and provident funds.
The offer was arranged by First Metro Investment Corp. (FMIC), the investment banking arm of the Metrobank Group.
FMIC president Francisco Sebastian said the oversubscribed offer was a testament to the confidence of investors in PLDT's name and its future prospects amid challenging times.
"As flight to quality remains to be an investor’s utmost concern, this PLDT deal, which raised P5 billion, in record time is a success by any measure," he noted.
PLDT chairman Manuel V. Pangilinan, who was present at the signing, said: “We are pleased that there was an enthusiastic response to our fixed rate notes issue, despite the global
credit tightening and an increased demand for local funds to serve the requirements of other Philippine corporates."
PLDT, the country's largest telecoms firm, earlier said it would spend between P27 billion and P28 billion for capital expenditures this year, the same as the 2007 level.
As of December 2008, PLDT recorded 35.2 million cellular network subscribers under units Smart Communications Inc. and Pilipino Telephone Corp.'s Talk 'N Text.
The company had forecast a core profit of P37 billion for 2008, up 5 percent from the previous year, despite slowing demand and higher costs.
PLDT is due to announce its earnings on March 3