Manila Electric Co. (Meralco) is set to fully redeem the remaining P2.867 billion of its 12-year fixed-rate bonds when the securities reach maturity this December.
In a regulatory filing, Meralco said the P7-billion bonds – issued in 2013 carried a 4.875 percent annual interest rate – would be redeemed at 100 percent of face value. It will also pay all accrued and unpaid interest up to the maturity date, in line with the bond prospectus and trust indenture.
The bonds are maturing on Dec. 12.
The outstanding amount was reduced in 2023 after some qualified bondholders had exercised the 10th-year put option, leading to the redemption of P4.132 billion of the bonds.
Payment
According to the company, the Philippine Depository and Trust Corp., acting as paying agent, will remit the final redemption proceeds to the designated cash settlement accounts of bondholders recorded as of Dec. 10.
Meralco also advised that the bonds would cease to accrue interest on the maturity date. Aggregate redemption amount is P2.902 billion, inclusive of gross accrued interest prior to applicable tax deductions.
Each minimum denomination of P50,000 will receive P50,609.38 before taxes.