Globe Telecom Inc. has tapped foreign and local banks for its proposed US dollar denominated loans which will be used to partly finance its capital expenditure (capex) and refinance debt this year.
In a disclosure to the Philippine Stock Exchange, Globe said it has mandated The Hongkong and Shanghai Banking Corp. Ltd. and J.P. Morgan Securities plc as joint global coordinators, with BPI Capital Corp. joining the two as joint lead managers and joint bookrunners, to arrange a series of fixed income investor meetings commencing on July 15, 2020, for the US dollar denominated senior note offering.
Globe did not disclose the amount of the loan but said the net proceeds from the issuance are expected to be used to finance its capex, for maturing and/or existing obligations, and for general corporate requirements.
Last month, Globe signed a P3 billion loan facility with China Banking Corp. also to partly finance its over P60 billion capex this year and to refinance maturing obligations.
The company reported at least a P2 billion reduction in capex spending in the second quarter this year versus the first quarter which totaled P10.7 billion, due to the impact of the coronavirus disease (COVID-19) pandemic. The company initially committed to spend P63 billion in 2020 for its network expansion program.