Globe to raise P5 billion through sale of notes
Posted on May 25th, 2009
One of the country’s leading telecommunications company, Globe Telecom is looking to raise another P5 billion for its capital requirements through the sale of five- and seven- year debt notes to institutional investors.
In its disclosure to the Philippine Stock Exchange, the company said that it already signed a deal with First Metro Investment Corp. to arrange the issuance of the fixed and floating rate notes due on 2014 and 2016.
Globe head of treasury Alberto de Larrazabal said, “The proceeds of the facility will be used to finance the company’s capital expenditures and general corporate requirements.â€
Globe Telecom, which is a joint venture between the Ayala Corporation and the Singapore Telecom, have already sold P5 billion worth of three- and five-year bonds in February through a retail offering. The proposed debt notes however, will be sold to no more than 19 institutional investors.
The company has also taken out a P1-billion, five year loan from Land Bank of the Philippines (LBP), and another $50 million from Export Development Canada which it acquired earlier.
All the borrowings are in support of Globe’s capital expenditure. $350-$400 million has already been earmarked for capital outlays this year, most of which will be used to expand its consumer broadband business, including its 3G and 2G businesses. Of the total capital expenditure, $70 million will be spent for cable facilities and other support and nonrecurring items.
Recently, the company has already launched its fully mobile broadband service as Globe Broadband Tattoo, with the growing youth segment as its market, which requires on-the-go broadband connections. At present, the new mobile broadband service is available in prepaid and postpaid variants and offers a speed connection of up 2 Mpbs.
Aside from the mobile broadband, it also launched earlier its WiMAX service, which is one of the first and biggest of its kind in Southeast Asia. This wireless data service is available currently in selected key areas in South Luzon, Visayas and Mindanao, offering broadband data only and data bundled with voice packages for P795 and p995 a month at a connection speed of up to 512 Kbps.
