PLDT nears completion of P77-B towers sale, leaseback deal

PLDT Inc. eyes the completion of its P77-billion telecom towers sale and leaseback deal by the first quarter of 2023, with 75 percent of its towers already transferred to the buyers.

The Pangilinan-led telecommunication player, in a statement on Monday, said it had received P57.7 billion for the transfer of 4,435 towers out of the 5,907 in its portfolio under the sale and leaseback deal with edotco Group unit ISOC edotco Towers Inc. and EdgePoint subsidiary Comworks Infratech Corp. PLDT will lease back the towers from these companies for 10 years.

ISOC edotco acquired 2,973 towers located across the country for P42 billion. The remaining towers were bought by Comworks Infratech for P35 billion.

“Proceeds from the sale of the towers would be used to pay down debt, and support operating and capital expenditures. The transaction is timely as it allows PLDT to avoid additional debt against a backdrop of a rising interest rate environment,” the telco player said.

PLDT increased its capital expenditure program for this year to P85 million from the previous P76 billion to P80 billion for its home broadband and data center businesses, as well as additional upgrades of towers.

In the first half, PLDT spent P46 billion of its programmed capital expenditure for the year. This includes investment in home broadband business, data center and international cabling systems.

The listed company also deployed additional 1.92 million fiber ports in the first half, bringing the total to 6.72 million.

Its rival Globe Telecom, meanwhile, recently announced that it had raised P91 billion from its own tower sale and leaseback deals.