Philippine Long Distance Telephone Company (PLDT) and its mobile division Smart Communications have collectively raised PHP5 billion (USD108.3 million) by each issuing PHP2.5 billion worth of five-year, fixed-rate notes to institutional lenders. In a statement, PLDT’s Ramon I Isberto said the lenders comprised a number of universal, savings, trust, and investment banks, and included an insurance company. ‘The interest rate of 6.8615% fixed for the borrowings is the lowest and most favourable for both PLDT and Smart,’ Isberto added.
According to TeleGeography’s GlobalComms Database, in early 2010 PLDT revealed it was looking at a total CAPEX of PHP28.6 billion for the year, and as part of this, said it hoped to raise between PHP5 billion and PHP10 billion through debt raised from a combination of local and foreign banks. The group expects to make additional investments in its core facilities to maximise existing technologies and increase capacity to accommodate expected continued increases in call volumes as a result of unlimited voice offerings and other promotions. First Metro Investment Corp acted as arranger and book runner for both debt deals.