Globe returns to foreign bond market, raises $600M

Industry giant Globe Telecom Inc. successfully raised $600 million following its return to the international bond market after 16 years.

The fund-raising measure, coming in the middle of the new coronavirus pandemic, was met with strong demand from investors. The money will be used to finance Globe’s expansion and refinance existing debts.

“The issuance is a testament of the investor community’s unwavering trust in the company’s strong business fundamentals,” Globe CEO Ernest Cu said in a statement on Friday.

According to the company, Globe sold $300 million in 10year and $300 million in 15-year notes. The coupon rate was at 2.5 percent and 3 percent, respectively.

The deal was arranged by HSBC and J.P. Morgan as joint global coordinators, and HSBC, J.P. Morgan and BPI Capital Corp. as joint lead managers and joint bookrunners.

According to the company, demand was at 6.5 times the issue size. This also allowed Globe to tighten from the initial pricing guidance by 40 basis points for the 10-year tranche and 35 basis points for the 15year tranche.

As a result, the 10-year tranche was the lowest ever yield for an unrated 10-year US dollar issuance globally and the tightest spread ever for any unrated corporate US dollar issuance in Southeast Asia.

On the other hand, the 15year tranche represents the longest ever tenor for an unrated corporate US dollar issuance globally, according to Dealogic.

“The outstanding success of the transaction underscores global investors’ confidence in Globe’s strong long-term outlook,” Globe chief finance officer Rizza Maniego-eala said in the same statement.

“This issuance was an important milestone in our continuous engagement with investors and expanding our debt capital structure,” she added.

Globe said the notes would be listed on the Singapore Exchange Securities Trading Limited.