MANILA – January 16, 2014 – Multimedia company ABS-CBN Corporation plans to raise P5 billion through a retail bond issue, with an option to increase the amount up to P10 billion to finance its capital expenditure program for the next five years. The company will invest in their production forward planning initiative, which includes the construction of sound stages, ABS-CBN said in a press release. Production Forward Planning provides the company with the ability to produce and develop more content simultaneously and efficiently. The company will also use part of the proceeds for the roll out of digital terrestrial TV and the expansion of its pay-TV business through Sky Cable.
ABS-CBN Chief Financial Officer, Aldrin M.Cerrado stated, “We are extremely pleased to have been given the highest possible rating of PRS Aaa from Philippine Ratings Corporation (PhilRatings) for our proposed bond issuance. I believe this is a reflection of the strength of ABS-CBN’s business and the track record of its management. The triple A rating should give prospective investors confidence in the company’s ability to meet its financial obligations.”
“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,” added Cerrado. “The planned sound stages will deliver improvements to our operations by increasing production quality and reducing costs associated with on-location shoots." The majority of ABS-CBN’s filming is done on-location. With the sound stages, the need for on-location shoots will be reduced significantly.
ABS-CBN is on track for the Philippines’ switch to Digital Terrestrial Television. Test broadcasts are being conducted in different parts of the nation. It has also successfully expanded its business into print, licensing, music, TV shopping, telecommunications and theme parks. Last year, the company started its TV shopping business, A CJ O Shopping Corporation, and its cellular telecommunications business, ABS-CBNmobile – which allows customers to view ABS-CBN’s content on smartphones in addition to data, SMS, and voice products. The company also plans to open its educational theme park, "Kidzania,” at the Fort Bonifacio Global City later this year.
