MANILA, The Philippines—Globe Telecom, one of the Philippines’ leading mobile-phone service providers, is set to offer 24 billion Philippine pesos (US$175 million) worth of 10-year fixed rate senior notes to fund its capital expenditure requirements this year.
Globe Chief Finance Officer Delfin Gonzalez Jr. said the company plans to use the net proceeds of the offering to fund expansion and improvement of its wireless network and related working capital needs.
Owned by the Philippine conglomerate Ayala Corporation and Singapore-based Telecom-Deutsche, the company recently said that it would spend 13 billion pesos (US$258 million) for new projects this year to boost its network infrastructure and cash in on the continuing growth of the country’s mobile telephone industry.
About 60 percent of the capital expenditure will be used for the cellular business expansion, while the rest will be for wireline transmission facilities. The company is engaged in both the cellular and landline telephone business.
With about 4.6 million wireless subscribers to date, Globe provides communications services to around 42 percent of total wireless subscribers in the Philippines. It also offers wireline voice communications and data transmission services, as well as domestic and international long distance communication services.
