Globe to tap offshore bond market

Telecommunications giant Globe Telecom Inc. plans to tap the offshore bond market to raise funds for capital expenditures and debt refinancing.

In a stock exchange filing, Globe said it has mandated various banks to arrange a series of fixed income investor meetings starting yesterday.

“A Reg S only US dollar-denominated senior note offering may follow, subject to market conditions,” Globe said.

The Hongkong and Shanghai Banking Corp. Ltd. (HSBC) and J.P.Morgan Securities were tapped as joint global coordinators.

HSBC, J.P. Morgan, and BPI Capital Corp. serve as joint lead managers and joint bookrunners.

Globe said net proceeds from the issuance would be used to finance capital expenditures, maturing and existing obligations, and for general corporate requirements.

The company is looking to spend over P60 billion for infrastructure development to increase capacity and network upgrades around the country as part of its massive spending campaign for 2020.

This third quarter, Globe is undertaking various cell site development in different parts of the country to expand further its network capability.

Late last month, Globe signed a P3-billion loan facility with China Banking Corp. which will also be used to finance the company’s capex, refinancing of maturing obligations, and general corporate requirements.

Globe-rival PLDT Inc., for its part, made a triumphant return to the international bond market last month after nearly two decades, raising $600 million.