Philippines’ second-largest mobile network operator, Globe Telecom, has received approval from its board to undertake a PhP15bn (US$352m) retail bond programme.
In a notice to the Philippine Stock Exchange, Globe explained that this programme will…
Philippines’ second-largest mobile network operator, Globe Telecom, has received approval from its board to undertake a PhP15bn (US$352m) retail bond programme.
In a notice to the Philippine Stock Exchange, Globe explained that this programme will allow the company to tap the retail market in one or several tranches over the next 12 months.
Globe CFO Alberto de Larrazabal was quoted telling reporters in a briefing that PhP10bn (US$234.3m) would be issued by the middle of this year, while the remaining PhP5bn (US$117.1m) would be issued in 2013.
The bonds will be offered to both institutional and retail investors and the proceeds will be used to fund capital expenditures. For 2012, Globe Telecom estimates capex to be around US$750m-US$800m.
Last year, the company borrowed a total of approximately US$390m in three separate loans. It also inked a 10-year US$90m floating rate term loan with China Banking Corporation in early 2012.
The proceeds of those various loans have been mainly aimed at funding capex for 2011/2012 and for repaying existing debt.
