Globe’s $600M fundraiser bags Telecom Deal of the Year award
Globe Telecom bagged the “2021 Telecom Deal of the Year” from The Asset after foreign investors swarmed its $600 million bond issuance when it returned to the offshore debt market in July last year.
In support of the importance of infrastructure to the region’s future, the publication honors institutions and deals that make a difference every year. The Asset Triple A Infrastructure Awards recognize the Public-Private Partnership (PPP) role in filling the gap between the immense requirements for infrastructure in Asia.
Globe issued 10- and 15-year US dollar-denominated senior notes in July last year to fund its capital expenditures, general corporate requirements as well as refinance its obligations. The bond had an oversubscription of 6.5 times resulting in a tightening of its spreads.
The fund raising activity enabled the company to diversify its funding sources and lengthen its debt maturity profile. It last tapped the international debt market in 2004.
“We are humbled and honored to be recognized for our bond issuance after a long absence in the international debt market. The success of the non-rated bond transaction underscores global investors’ confidence in the strength of Globe’s balance sheet, cash flows and long-term outlook. This issuance was an important milestone in our continuous engagement with investors and expanding our debt capital structure,” said Rizza Maniego-Eala, Globe Chief Finance Officer.
A portion of the proceeds was earmarked for the company’s unprecedented P70 billion capital expenditures this year. Globe’s goal is to build 2,000 cell towers and roll out one million fiber-to-the-home lines to deliver first-world internet connectivity for the Filipinos amid the Covid-19 pandemic.
“Infrastructure is a vital ingredient necessary to sustain economic development. Numerous hurdles need to be overcome, not least in developing bankable projects, and also to structure deals that can be sold into the capital markets,” The Asset said.
A study conducted by the Asian Development Bank (ADB) showed the region needs $22.6 trillion until 2030 or $1.5 trillion per year to bankroll crucial infrastructure projects, including climate change mitigation and adaptation costs.
A growing segment of infrastructure in Asia Pacific is on renewable projects. Whether energy-related or linked to environmental, social, and governance (ESG), the trendsetting projects are defining a new phase in infrastructure finance that takes into consideration the Sustainable Development Goals (SDGs) of the United Nations which Globe is also supporting.
With over two decades of experience conducting awards programs, The Asset Triple A Awards have expanded year on year, reflecting unparalleled industry understanding to distinguish best-in-class organizations.
To know more about Globe, visit www.globe.com.ph.
