By Marisa Wong
Madison, Wis., Feb. 6 - Philippine Long Distance Telephone Co. issued its maiden Philippine Securities and Exchange Commission-registered retail bonds on Thursday. After receiving overwhelming demand from both retail and institutional investors, the company exercised its oversubscription option and increased the total issue size to PHP 15 billion from PHP 10 billion, according to a press release.
The bonds, which have tenors of seven and 10 years, were more than twice oversubscribed.
The company said the strong support enabled it to price the bonds at the tightest end of guidance with the seven- and 10-year bonds priced at 5.225% and 5.2813%, respectively, equivalent to 100 basis points over the relevant government benchmarks.
Of the PHP 15 billion issued, a total of PHP 12.4 billion was allocated to the seven-year tranche, and the remaining PHP 2.6 billion to the 10-year tranche.
BDO Capital & Investment Corp., BPI Capital Corp., First Metro Investment Corp. and Hongkong and Shanghai Banking Corp. Ltd. were the joint lead underwriters and joint bookrunners. First Metro Investment is also the issue coordinator.
China Banking Corp., Development Bank of the Philippines, RCBC Capital Corp. and SB Capital Corp. acted as co-lead underwriters, and Land Bank of the Philippines was another participating underwriter.
As previously reported, the bonds were offered to the public from Jan. 24 to Jan. 30, but the issuer had the option of closing the offer period before Jan. 30.
The bonds were listed on the Philippine Dealing and Exchange Corp. on Thursday.
Credit Rating and Investors Services Philippines, Inc. has rated the bonds AAA.
Proceeds will be used to finance capital expenditure and refinance some existing debt.
The telecommunications company is based in Makati City, Philippines.
| Issuer: | Philippine Long Distance Telephone Co.
|
| Issue: | Retail bonds
|
| Amount: | PHP 15 billion (including PHP 5 billion oversubscription option)
|
| Underwriters: | BDO Capital & Investment Corp., BPI Capital Corp., First Metro Investment Corp. and Hongkong and Shanghai Banking Corp. Ltd. (joint lead); China Banking Corp., Development Bank of the Philippines, RCBC Capital Corp. and SB Capital Corp. (co-lead); Land Bank of the Philippines (participating)
|
| Offer period: | Jan. 24 to Jan. 30
|
| Settlement date: | Feb. 6
|
| Rating: | Credit Rating and Investors Services Philippines: AAA
|
|
|
| Seven-year bonds
|
| Amount: | PHP 12.4 billion
|
| Maturity: | Seven years
|
| Coupon: | 5.225%
|
|
|
| 10-year bonds
|
| Amount: | PHP 2.6 billion
|
| Maturity: | 10 years
|
| Coupon: | 5.2813%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
