Proceeds of Globe P10B bond issuance to partially fund its massive network modernization program
3:51 AM
Vernon Joseph Go
Proceeds of the recent P10-billion retail bond issuance of Globe Telecom will be used to partially fund the massive $700-million network modernization program which the telecom giant is currently undertaking, according to Globe President and CEO Ernest L. Cu.
“The ultimate purpose of this offer is for Globe to create the happiest customers and the happiest employees. Globe is yet one step closer to making our superior customer experience proposition a palpable and pervasive reality,” he said.
Globe is future-proofing its network and modernizing thousands of its cell sites across the country to cater to the emerging mobile data traffic being caused by the growing number of smart phones.
For instance, Globe will be rolling out 10,000 kilometers of fiber optic in the implementation of Long Term Evolution (LTE) technology that will bring high-speed data to mobile phones and other data terminals. The company is also working on creating best-of-breed responsive IT systems throughout the country.
This is a far-reaching transformation that will result in vast improvements in Globe customer experience – quick and reliable call connections, instantaneous text messaging, blazing fast internet browsing, and proactively intelligent spot-on customer support.
“With this endeavor, we aspire to be the truly service-centric company that Filipinos come to love and loyally patronize. Altogether, we fervently believe that through our comprehensive transformation to serve customers better, Globe is advantageously positioned to become the most preferred brand among telecommunication service providers,” Cu said.
Last June 1, Globe officially traded P10 billion bonds in the organized market via the Philippine Dealing and Exchange Corp. (PDEx). It has two tranches which promise future formidable returns of 5.75% per annum over five years and six percent per annum over seven years.
The bond issue obtained a rating of PRS Aaa from Philippine Rating Services Corporation (PhilRatings), representing the highest rating available with the smallest degree of investment risk.
“This P10 billion bond offer is undoubtedly a great investment opportunity. We expect the investment community to aggressively seize the opportunity to benefit from it. I understand that we are already oversubscribed at this point in time,” Cu said.
Joint Lead Underwriters and Bookrunners for the bonds are BPI Capital Corporation, BDO Capital and Investment Corporation, The Hongkong and Shanghai Banking Corporation Limited, and RCBC Capital Corporation. Co-Managers are China Banking Corporation, First Metro Investment Corporation, Land bank of the Philippines, Philippine Commercial Capital, Inc., and SB Capital Investment Corporation.
Posted in
You can leave a response, or trackback from your own site.
0 Responses for this post
Post a Comment