Proceeds of the recent P10-billion ($232 million) 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.
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 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,” Globe President and CEO Ernest L. Cu said.
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.
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.