CIRTEK Holdings Philippines Corp. said the “success” of its listing of P1 billion in commercial papers on Wednesday is shown by the offering’s more than four times oversubscription at a period of quantitative easing and successive rate cuts by local and international central banks.
“The group plans to use the proceeds from the sale to partly retire its short-term liabilities maturing in 2021 and refinance working capital of its subsidiaries,” the company said in a statement issued to commemorate the listing with the Philippine Dealing and Exchange Corp. (PDEx).
Cirtek’s P6-billion commercial paper platform includes this offering. Multinational Investment Bancorporation served as the primary arranger and main underwriter for the transaction.
Quintel USA, Cirtek Electronics Corp., and Cirtek Advanced Technologies and Solutions, Inc. will have their working capital refinanced “as it participates in the development of a fully 5G powered world,” the mentioned firm said.
It also stated that the Philippine Ratings Services Corp. had issued a credit rating of PRS A (corp.) with a positive outlook to its commercial paper offering, which had been accepted by the Securities and Exchange Commission.
Companies ranked PRS A (corp.) have an above-average ability to fulfill their financial obligations, and the ranking is expected to stay unchanged throughout the next 12 months due to a positive outlook.