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MANILA, Philippines - The Securities and Exchange Commission (SEC) has cleared Globe Telecom Inc.'s fixed-rate retail bond offering slated later this month.
Documents from the SEC show the Ayala-led telco will issue five- and seven-year bonds amounting to P10 billion from May 21 to 25.
The bonds maturing in 2017 will bear an interest rate of 5.3262 to 5.4762 percent, while the bonds due 2019 will carry an interest rate of 6.0462 to 6.1962 percent.
Globe intends to use the money it would raise from the bond issuance to fund its ongoing network upgrade, which would cost $790 million in the next half-decade. The telco has allotted $640 million of that total amount for this year and 2013.
Net proceeds of P9.9 billion will partially finance this year's capital spending, earmarking $530 million for network and IT transformation initiatives and $220 to $270 million for fixed-line network, submarine cable facilities, IT infrastructure and other selling and general capital expenditure.
BPI Capital Corp., The HongKong and Shanghai Banking Corp.Ltd., and RCBC Capital Corp. are the joint lead underwriters.
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