PLDT to borrow P16 B to refinance maturing obligations

MANILA, Philippines — PLDT Inc. is set to borrow P16 billion this year to refinance its maturing obligations.

“We have P16 billion in maturities this year. So, that’s what we would refinance,” PLDT chief financial officer Anabelle Chua told reporters.

For the fund raising activity, she said the telco and digital services provider will borrow from banks.

“We don’t want to borrow in dollars. We borrow in peso and there’s lots of offers that we’re getting from the banks,” she said.

PLDT has set its capital expenditures at a historic high of P58 billion this year.

Bulk or 53 percent of this year’s capex has been allocated for the fixed network business requirements as PLDT is embarking on an aggressive rollout of fiber broadband service to cater to growing demand for digital services.

The higher capex is also intended to allow PLDT and wireless unit Smart Communications Inc. to overhaul information technology systems and platforms to support network management and business operations in order to provide more efficient services to customers.

PLDT chairman and chief executive officer Manuel V. Pangilinan said earlier this year’s capex would be funded by a combination of internally generated funds, as well as proceeds from the sale of receivables from the sale of the company’s stake in Beacon Electric Asset Holdings Inc. to Metro Pacific Investments Corp., and the sale of its interest in Rocket Internet.

Chua said PLDT hopes to complete the sale of its interest in Rocket within the year.

PLDT expects to maintain the 2018 level of capex for 2019 and 2020.

The capex this year until 2020 would bring PLDT’s total spending to nearly P260 billion since 2016, when the company started its network transformation program.

The company has set its recurring core income guidance at P23 billion to P24 billion this year, as it expects a four percent growth in service revenues.

Last year, PLDT’s recurring core income, which excludes gains from asset sales, manpower reduction program related expenses, accelerated depreciation, and earnings before interest, taxes, depreciation and amortization adjustments, reached P22.3 billion, in line with the P22 billion guidance and 11 percent higher than the P20.2 billion recorded in 2016.