PLDT raises PHP7bn to fund next year’s CAPEX plan

9 Dec 2009

The Philippines’ dominant telecoms operator Philippine Long Distance Telephone Company (PLDT) says it has raised PHP7 billion (USD152 million) through the sale of fixed rate notes. The funds will be used to help fund the telco’s CAPEX requirements in 2010 as well as repaying debt. In a statement, the operator said the sale included PHP5.05 billion in five-year notes, PHP850 million in seven-year notes and PHP1.1 billion in ten-year notes, priced at 100 basis points over comparable government bonds. A number of firms are providing the funding it added, comprising a mix of commercial, savings and trust banks, a leasing company and a large insurance firm. According to the operator’s president, Napoleon Nazareno, next year’s capital expenditure budget is likely to be PHP28 billion – slightly higher than this year’s PHP27 billion – with the majority of the monies being set aside to develop the telco’s broadband and data services capabilities.