Globe plans issuance of retail bonds in 2018

MANILA, Philippines — Globe Telecom Inc. is planning to issue retail bonds next year to support its funding requirements. 

Globe chief financial officer Rizza Maniego-Eala told reporters in a chance interview the company is looking at the possibility of issuing retail bonds to raise funds next year. “That’s an option for next year,” she said. 

Earlier this year, Globe’s board of directors approved to increase to P40 billion from P20 billion the amount of debt securities it could sell over the next three years. 

The bonds could be issued in one or more tranches. 

Eala said Globe has yet to decide on the amount of bonds to be issued as it has not set a guidance for capital expenditures next year. 

For this year, she said Globe has completed its funding requirements. 

Last month, Globe raised its capital expenditure guidance to $850 million from the initial $750 million. 

The additional $100 million capex would be used to fund continued deployments of Long Term Evolution services using the 700 megahertz (MHz) and 2600 MHz frequencies, increase 3G capacities as well as to further expand mobile coverage. 

To fund this year’s capex, Globe entered into loan agreements with various banks.

The most recent agreement entered into by Globe was the seven-year and 10-year term loan facility worth $155 million with Metropolitan Bank and Trust Co. signed in August.

In April, it signed a 10-year term loan facility worth P8 billion with BDO Unibank Inc.

Earlier this year, it also entered into an eight-year term loan facility worth P7 billion with BDO as well as a six-year term loan facility amounting to P7 billion with the Development Bank of the Philippines.