Globe plans to issue dollar bonds

MANILA, Philippines — Globe Telecom Inc. is planning to offer dollar-denominated bonds to raise funds for capital expenditures and refinance debt.

Globe, in a stock exchange filing, said it has tapped banks for a potential Reg S only dollar-denominated senior perpetual capital securities offering.

Mandated as joint global coordinators are the Hongkong and Shanghai Banking Corp. Ltd and JP Morgan Securities plc, together with BPI Capital Corp., as joint lead managers and joint bookrunners.

The banks will arrange a series of fixed income investor meetings commencing on Oct. 25.

“A Reg S only dollar-denominated senior perpetual capital securities offering may follow, subject to market conditions,” it said.

Globe did not specify the amount of the bond offering.

However, Globe said net proceeds from the issue are expected to be used to finance the company’s capital expenditures, maturing and/or existing obligations, and for general corporate requirements.

Globe last August raised its capital spending program for 2021 to P76 billion from P70 billion.

In the same month, the company announced that it has secured debt financing worth P13 billion from two local banks to finance this year’s revised capital spending.

Globe invested 43.3 billion in the first half, 107 percent higher than the same period last year, for the improvement of its network infrastructure and internet connectivity.

The bulk, or about 88 percent, of the capex during the period went to data network builds to address and boost customer experience.