Listed telecommunications firm Globe Telecom Inc. has raised another $600 million from the issuance of dollar-denominated senior perpetual capital securities.
The Reg S only non-call 5-year US dollar-denominated senior perpetual capital securities are unrated and have been received by the Singapore Exchange Securities Trading Ltd. for listing.
Globe President Ernest L. Cu said the final order book was oversubscribed by more than three times, allowing the company to upsize the transaction to $600 million and tighten final pricing by 30 basis points to 4.20 percent from the initial price guidance of 4.50 percent.
“The issuance reaffirms the international investment community’s confidence in the company’s strong business fundamentals and mobile market leadership. The success of the offering supports our efforts to expand and enhance our core business and enable our efforts in building a robust digital ecosystem in the country,” he said.
This transaction represents the tightest pricing for an equity-accounted senior step-up perpetual from the Philippines during the pandemic and the second tightest ever. The transaction joins other Philippine equity issuers as the largest size raised in a single tranche under this structure.
“We are extremely delighted with the outcome of the securities offering. The outstanding success of the transaction underscores global investors’ belief in Globe’s strength as a business. This offering was an important milestone in our continuous engagement with our investors and achieves our objective to strengthen Globe’s position in the capital market,” Globe CFO Rizza Maniego-Eala said.
HSBC and J.P. Morgan acted as Joint Global Coordinators, and HSBC, J.P. Morgan, and BPI Capital Corporation acted as joint lead managers and joint bookrunners. China Bank Capital Corporation acted as domestic lead manager.
The offering signals Globe’s return to the international capital markets following its dual-tranche dollar-denominated senior notes issuance in 2020.
Proceeds of the issuance will be used to fund Globe’s capital expenditures, maturing or existing obligations, and general corporate requirements.
Globe recently raised its capital requirements for 2021 to P76 billion from the programmed P70 billion, as it pursues more telco infrastructure projects for the year.
The company announced that it will spend 88 percent of the budget on data, 6 percent on business support, 5 percent on core requirements, and a percentage on miscellaneous investments.
Globe’s net income in the first half rose by 13 percent to P13 billion from P11.5 billion in the same period the year prior, owing to the favorable effects of the Corporate Recovery and Tax Incentives for Enterprises Act.
Its consolidated services revenues increased by 4 percent to P75.5 billion from P72.4 billion, driven largely by its fixed and mobile businesses.