Smart-PLDT Raises $600 Million to Counter DITO Telecom's Massive Infrastructure Build-up

The country's largest telecom companies PLDT and their subsidiary Smart Telecom raises at least $600 million through the international bond market to counter DITO Telecom's massive infrastructure build-up.



According to PLDT they returned to the international bond market after 18 years. The $600 million bonds came from the two-part issuance of the lowest coupon for a 10-year and 30-year offering.



The orders reached P10.2 billion or 17 times the amount sold-the largest orderbook size and oversubscription achieved by an issuer driven by institutional investors.

PLDT stated further that the proceeds from the bond market will primarily serve to refinance PLDT's existing debt obligations at lower interest rates until 2021, allowing the telco to boost spending for operational and revenue growth.

According to some business analysts the returned of PLDT to the international bond market is an indications that they are now prepping to counter the massive infrastructure build-up of the third telecom player in the country, DITO Telecom, the company that promised to provide at least 27Mbps in the first year of internet connectivity.



DITO Telecom already finished building at least 500 operational towers in various parts of the country and within the next few months or in the coming month of October, the company will operate at least 1,300 towers nationwide.

The company which is a consortium between Udenna Corporation and China Telecom, has "enough" resources to fund its challenge to PLDT Incorporated operator of Smart Telecom and Globe Telecom after they secured fresh funding from Bank of China to cover their requirements in its first year of operations.

The third telecom also announced earlier that DITO's state-of-the-art DITO Data Center located at the heart of Clark Business District, will be finished before the scheduled commercial roll-out this coming March 2021.

Source: DICT Official Website

Smart-PLDT Raises $600 Million to Counter DITO Telecom's Massive Infrastructure Build-up Smart-PLDT Raises $600 Million to Counter DITO Telecom's Massive Infrastructure Build-up Reviewed by Phil Newsome on September 06, 2020 Rating: 5
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