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 Cu, said in a company press release yesterday.
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, the press release said.
Globe will be rolling out 10,000 kilometers of fiber optic in the implementation of Long Term Evolution 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, it also said.
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, the press release said.
On June 1, Globe officially traded P10 billion bonds in the organized market via the Philippine Dealing and Exchange Corp.
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.
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.*