Ayala-led Globe Telecom Inc. is planning to raise P20 billion of fresh funds from the debt market to fund an aggressive expansion program.
In a disclosure to the Philippine Stock Exchange on Monday, Globe said its board of directors approved the filing for P20 billion worth of debt securities with the Securities and Exchange Commission (SEC) under a shelf registration program.
The SEC allows companies to issue securities in one or more tranches in a span of three years under a shelf registration scheme for companies to take advantage of lower interest rates.
Globe officials earlier said it plans to deploy more LTE sites this year, using additional spectrum assets that were co-purchased with rival PLDT Inc. from San Miguel Corporation’s telecom business in May 2016. Globe intends to accelerate its network build-up and to stay ahead of growing consumer demand.
The telco began deploying LTE sites using the additional 700 Megahertz (MHz) band in June. The company is also using the 1800 MHz, 2300 MHz and 2600 MHz, which were part of the co-acquisition deal.
Globe set aside $1 billion in capital expenditure last year to cover its network expansion. As of end-2016, Globe was able to deploy 500 LTE sites using the 700 MHz band, and 900 LTE sites under the 2,600 MHz spectrum.
Globe provides digital wireless communication services nationwide through the brands Globe Postpaid, Globe Prepaid, Touch Mobile and Tattoo, and offers domestic and international long distance carrier services.