Globe gets SEC nod to sell P7-B bonds

MANILA, Philippines – The Securities and Exchange Commission (SEC) approved Ayala-led Globe Telecom Inc.’s plan to issue up to P7 billion worth of bonds to finance its capital expenditures and prepay expensive debt.

Globe head of investor relations Jose Mari Fajardo told the Philippine Stock Exchange in a disclosure that the SEC issued a permit for the fixed-rate bond sale.

Fajardo said Globe plans to sell P7 billion worth of bonds due 2020 and 2023.

In May, Globe’s board of directors approved the bond offer, proceeds of which will go to capital expenditures amounting to as much as $650 million, as well as debt prepayments this year.

Globe ended the first quarter with a net income of about P700 million, down 75% from P2.7 billion in the same quarter of 2012.

Core net income, which excluded foreign exchange transactions, mark-to-market gains and losses and non-recurring items, grew 13% to P3.1 billion from P2.74 billion last year.

As of end-March, Globe subscribers totaled 35.1 million, accounting for 33% of the market. – Rappler.com