Philpost : Post office wants bond float to pay debt
The Philippine Postal Corp. (Philpost) is planning to issue P2 billion worth of bonds to pay off debts incurred by its defunct subsidiary, the state-owned company’s head said in an interview.
Postmaster General Hector R. R. Villanueva said his agency wants to clean up its balance sheet.
The company will issue the bonds in two years when its modernization program is in place.
Mr. Villanueva said the Philpost subsidiary had accumulated about P2 billion in debts.
Mr. Villanueva earlier said the government would to generate at least P10 billion from the sale of Philpost following the agency’s P5.7-billion computerization project, which is expected to improve operations.
The company last year inked a build-lease-transfer agreement with Japanese information technology giant ROA Systems Co. Ltd. to computerize Philpost’s operations and interconnect 2,000 post offices. The project will be completed in two years.
Mr. Villanueva said Philpost needs to raise its standards to be at par with Hong Kong, Singapore, and Malaysia, whose postal systems are modernized.
Philpost operates more than 2,000 post offices, distribution centers, and mailing outlets all over the country. It has a work force of 13,000 employees and owns more than 2,500 mail vans and motorcycles.
Last year, the agency reported a net profit to P46 million due mainly to cost-cutting measures. This year, it expects about P147 million in net incomes.
The Japanese firm will computerize the Philippine postal system by leasing computers and other equipment.
It will build and maintain modern postal applications and business systems for a period of nine years at no cost to Philpost.
With computers and new business systems, Philpost revenues are projected to rise to P13 billion, on top of about P3.5 billion it makes annually.
Mr. Villanueva said a number of companies have expressed interest to bid for Philpost, including Philippine Long Distance Telephone Co.
State-owned Development Bank of the Philippines and Land Bank of the Philippines are eyeing the Postal Bank.
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