Cirtek's Board Approves the Adjustment of Dividend Rate for Preferred B-2 Subseries C Shares

​The Board of Directors of Cirtek Holdings Philippines Corporation (TECH), in its regular meeting held on 16 December 2024, approved the adjustment of the Dividend Rate in relation to the subsequent declaration of dividends of the Preferred B-2 Subseries C Shares of the Corporation effective 14 December 2024.

The initial dividend rate of Preferred B-2 Subseries C Shares is 6.5864%.

Based on the Features, Terms and Conditions of the Preferred B-2 Subseries C Shares, unless the Preferred B-2 Subseries C Shares shall have been redeemed by the Issuer on the relevant Step Up Date or three (3) years from the Issue Date, the Dividend Rate shall be adjusted thereafter to the higher of:

(a) the sum of (i) the Initial Dividend Rate for the relevant Series, plus, (ii) 5.00%; or
(b) the sum of (i) the applicable Step-Up Benchmark Rate, plus (ii) the Initial Spread for the relevant Series, plus (iii) 5.00%

“Step Up Benchmark Rate” shall be equivalent to the simple average of the yield designated as “Final BVAL YTM” (or its successor designation) for the 7-year (for TCB2C) Republic of the Philippines Peso-denominated domestic government bonds, as published on the relevant page of Bloomberg at approximately 5:00 p.m. (Philippines Standard Time), for the three (3) banking days immediately preceding and exclusive of the applicable Step Up Date.

The adjustment in the dividend rate of the 16,936,400 Preferred B2 Subseries C Shares is expected on the three (3) years anniversary of the issue date, or the Step-Up Date on 14 December 2024, as approved by the Board of Directors of the Corporation during its meeting held on 16 December 2024. The adjusted dividend rate of 14.1425% will take effect on the first Quarterly Dividend Payment for the year 2025.