• Globe eyes P7 billion from bond market

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    Globe Telecom on Wednesday said that it plans to raise P7 billion in retail bonds next month to finance the portion of its capital expenditures for this year and some expenses related to Bayan Telecommunications’ debt reduction.

    “We’ve been fund raising money, were in fact out in the market, retail. I mean we’re getting to launch retail bonds,” said Alberto de Larazzabal, chief financial officer, treasurer and head of finance and administration group of Globe.

    “We’re going for a P7-billion bond, [that]could be by July [we]could be in the market, depending on processes. But we’ve started already the relevant filing with the SEC [Securities and Exchange Commission],” he added.

    Earlier, Globe said its that board of directors approved the company’s plan to issue a P7-billion retail bonds within the year to finance its 2013 capital expenditures.

    In a disclosure to the Philippine Stock Exchange on Tuesday, Globe said that, “Board of
    Directors approved the company’s plan to issue a P7-billion retail bonds within the year to partly finance the capital expenditure requirements for 2013 and pre-pay expensive debt.

    As registered securities, the bonds will be offered to both institutional and retail investors.

    The applicable registration statement and other papers will be filed with the regulators in due course.”

    Earlier, Globe said that it is investing heavily on its network modernization program to further boost its current capacity.

    In line with this, Globe signed a $120-million term loan facility with Metropolitan Bank and Trust Co. (Metrobank) to finance its capital expenditures.

    Globe said that proceeds of the loan will be used to finance its capital expenditures, which include ongoing network modernization and transformation program, and investments in fixed line, international cable facilities and information technology (IT) infrastructure.

    The loan facility with Metrobank brings $195 million the total loans obtained by Globe for the first quarter of 2013.

    Earlier, Globe also signed a $75-million term loan facility with The Bank of Tokyo-Mitsubishi UFJ Ltd. (Singapore branch).

    The company said that proceeds of the loan will also be used to finance 2013 capital expenditures, of which $450 million to $500 million has been earmarked for the company’s ongoing network modernization and transformation program, and investments in fixed line, international cable facilities and IT infrastructure.

    The Ayala-led company is spending $700 million to finance its network modernization program.

    Rosalie C. Periabras

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