Globe Telecom, Inc., a leading telecommunications company in the Philippines successfully priced today a US$600 million Reg S only non-call 5-year US dollar-denominated senior perpetual capital securities  offering, with an initial distribution rate of 4.20%, and payable semi-annually. The Securities shall be accounted for by the Company as an Equity Instrument. 

This offering represents Globe’s return to the international capital markets following its dual- tranche US dollar-denominated senior notes issuance in 2020. 

The Securities are unrated and have been received by the Singapore Exchange Securities Trading Limited (“SGX-ST”) for the listing and quotation of the Securities. As disclosed by Globe in its press release dated 25 October 2021, the net proceeds from the proposed issue of the Securities will be used to finance Globe’s capital expenditures, maturing and/or existing obligations, and for general corporate requirements.

The final order book was oversubscribed by more than 3 times, allowing Globe to upsize the transaction to US$600 million and tighten final pricing by 30 basis points to 4.20% from the initial price guidance of 4.50%. 

This transaction represents the tightest pricing for an equity-accounted senior step-up perpetual from the Philippines during the pandemic and the second tightest ever. The transaction joins other Philippine equity issuers as the largest size raised in a single tranche under this structure. 

According to Globe President and Chief Executive Officer Ernest Cu: “The issuance reaffirms the international investment community’s confidence in the company’s strong business fundamentals and mobile market leadership. The success of the offering supports our efforts to expand and enhance our core business and enable our efforts in building a robust digital ecosystem in the country.” 

Globe Chief Finance Officer, Treasurer and Chief Risk Officer Rizza Maniego-Eala, on the other hand, said: “We are extremely delighted with the outcome of the Securities offering. The outstanding success of the transaction underscores global investors’ belief in Globe’s strength as a business. This offering was an important milestone in our continuous engagement with our investors and achieves our objective to strengthen Globe’s position in the capital market.” 

HSBC and J.P. Morgan acted as Joint Global Coordinators, and HSBC, J.P. Morgan, and BPI Capital Corporation acted as Joint Lead Managers and Joint Bookrunners. China Bank Capital Corporation acted as Domestic Lead Manager.