ABS-CBN Corporation has obtained approval from the Securities and Exchange Commission to embark on a retail bond offering of P5 billion with an option to increase the amount to up to P10B to finance its capital expenditure program over the next few years.
ABS-CBN was authorized to offer 7- and 10-year fixed-rate bonds which will be priced at an indicative spread of 110 to 150 basis points over the benchmark PDST-F rates. The bonds will be issued in minimum denominations of P10,000. The company intends to list the bonds on the local stock fixed income platform Philippine Dealing & Exchange Corp.
Mandated by ABS-CBN Corporation as joint lead underwriters for this offering are BDO Capital, BPI Capital and HSBC. The company will invest in its production forward planning initiative, which includes the construction of soundstages. Production forward planning provides the company with the ability to produce and develop more content simultaneously and efficiently.
ABS-CBN chief financial officer Aldrin Cerrado said, “The strategic initiatives being adopted by management should ensure that we continue to provide high-quality content to our audiences in an efficient and cost-effective manner. The planned soundstages will deliver improvements to our operations by increasing production quality and reducing costs associated with on-location shoots.”
The company will also use part of the proceeds for the rollout of digital terrestrial TV.
