NOW Telecom looks to tap the debt market

27 Apr 2022

Filipino operator NOW Telecom has revealed that, having secured approval from the Securities and Exchange Commission (SEC) for an increase in authorised capital stock, it now intends to tap the debt or equity market to help support its future plans. The Manila Standard quotes the company’s president and CEO Rene Rosales as saying: ‘This strategic initiative of NOW Tel is envisioned to support its growth plans. The three-step equity restructuring better positions NOW Tel for investors both domestic and foreign to participate in its equity … With the amended Public Services Act allowing up to 100% foreign ownership in public utility companies and this recent approval from SEC, NOW Tel can now proceed in its growth plans starting with its fundraising efforts including but not limited to tapping either the debt market or equity market, or both.’

The operator confirmed that with the SEC approval in hand, it has increased the number of authorised common shares from 14.59 million to 952.09 million and lowered its ‘par value’ (the nominal value of a bond, share of stock, or a coupon) from PHP100 (USD1.9) per share to PHP1 per share.

As previously reported by CommsUpdate, in March this year the Anti-Red Tape Authority (ARTA) granted its approval for NOW Telecom’s application for an automatic extension of its mobile licence permits, paving the way for it to offer mobile broadband services across the country. On 31 March 2022 ARTA issued a resolution throwing out a motion filed for reconsideration by the industry regulator, the National Telecommunications Commission (NTC), and declared NOW Telecom’s application for cellular mobile telephone system (CMTS) provisional authority as complete. The operator’s efforts to secure a toehold in the mobile broadband market have been hindered for more than a decade, but the provisional authority covers rights to use 220MHz of spectrum ranging from 1970MHz-1980MHz, paired with 2160MHz to 2170MHz and 3.6GHz to 3.8GHz, including 5G frequencies for mobile and fixed wireless broadband.

Philippines, NOW Telecom (NOW Network)