10 Feb 2009
Filipino telecoms operator Globe Telecom has revealed plans to issue PHP3 billion (USD64 million) worth of bonds, maturing in three and five years, in order to raise funding for its business operations. Reuters reports that Globe, the country’s second largest operator by subscribers, is issuing three-year bonds with a coupon rate of 7.5%, payable quarterly, while the bonds due in February 2014 will have a coupon rate of 8%. The telco, owned by Singapore Telecom and local conglomerate Ayala Corp, said in November 2008 it was hoping to raise up to PHP10 billion from the domestic bond market this year. Globe Telecom reported a 15% drop in net profits last year and has allocated between PHP350million-PHP400 million for CAPEX in 2009, down 16% from 2008. In a statement to the stock exchange, Globe said that BPI Capital Corp, BDO Capital Corp and First Metro Investment Corp would be acting as lead underwriters of the domestic bond offer, which runs from 12-19 February.