SEC approves Globe Telecom plan to issue P10B in long-term bonds

The Securities and Exchange Commission has approved a plan by Globe Telecom to sell P10 billion in long-term bonds, thus allowing the company to raise more funds for its mobile network modernization program.

The proposed fixed rate bonds—which will be offered from May 21 to 25—will have a tenor of five and seven years.

The offering will be arranged by BPI Capital Corp., HSBC and RCBC Capital.

The bonds will be in scripless form with a minimum denomination of P50,000.

Globe’s network modernization program will require around $700 million in capital spending over the next five years, with $570 million to be spent this year and next year.

Globe plans to issue as much as P15 billion worth of bonds, of which the P10 billion will constitute the initial tranche.

Depending on market conditions and other factors, official documents said Globe may issue an additional tranche of debt securities with a principal amount of up to P5 billion.

The Philippine Rating Services Corp. has assigned its highest rating of PRS “Aaa” to Globe’s bonds.

Obligations rated “PRS Aaa” are deemed of highest quality with minimum credit risk.

The obligor’s capacity to meet its financial commitment is seen as “extremely strong.”—Doris C. Dumlao