ABS-CBN Corp., one of the country’s largest broadcast companies, plans to raise as much as P10 billion from its maiden bond offering next year, with proceeds seen to support its production capabilities, a company official said.
ABS-CBN treasurer Ricardo Tan Jr. said in an interview the retail peso bond offer was targeted for 2014, with BDO Capital, BPI Capital and Hong Kong and Shanghai Banking Corp. serving as joint lead managers.
ABS-CBN said in a stock exchange filing Friday that its board had approved a base offer of P5 billion, which can be increased by another P5 billion.
As noted, it is the company’s first bond sale but Tan said that ABS-CBN, which competes with main rival GMA Network Inc. for television ratings, is already familiar to investors.
“We are looking at spending P2 billion to P3 billion for production planning, that’s television and movies. And then sound stages, about P2 billion,” Tan said.
He said funds raised in excess of the base P5-billion offer would be used for working capital requirements.
The company is seen investing billions of pesos in the coming years, to support its recently launched telecommunications service and for the eventual shift to the Japanese digital television standard. Miguel R. Camus