Hong Kong telecoms conglomerate PCCW is planning to issue a US dollar-denominated 10-year bond, according to Moody’s.
The size of the issue is expected to be approximately US$300m and proceeds will be used to provide long-term capital rather than…
Hong Kong telecoms conglomerate PCCW is planning to issue a US dollar-denominated 10-year bond, according to Moody’s.
The size of the issue is expected to be approximately US$300m and proceeds will be used to provide long-term capital rather than for acquisition purposes or shareholder returns, the ratings agency said.
Bloomberg reported that Morgan Stanley and Royal Bank of Scotland have been mandated to work on the transaction.
PCCW was not immediately available for comments before the press deadline.
Moody’s said it does not expect the bond issuance to have any impact on the rating of its subsidiary Hong Kong Telecommunications (HKT).
“While the proposed bond issuance has no impact on HKT’s Baa2 rating, Moody’s would be concerned should PCCW seek to raise additional indebtedness such that the need for cash distributions from HKT Limited creates a drag on HKT’s financial profile,” stated Laura Acres, a Moody’s vice president and senior credit officer.
In late November, HKT was listed on the Hong Kong Stock Exchange as a business trust, allowing PCCW to keep control over its subsidiary. The IPO fetched US$1.2bn.
