GLOBE Telecom, Inc. is raising $600 million through the issuance of Reg S only non-call five-year US dollar-denominated senior perpetual capital securities.

In a disclosure to the stock exchange on Wednesday, Globe said it had successfully priced the securities offering with an initial distribution rate of 4.20%, payable semi-annually.

The net proceeds will be used to finance its capital expenditures and maturing and/or existing obligations.

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

“The final order book was oversubscribed by more than three 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%,” the company added.

Globe described the transaction as “the tightest pricing” for an equity-accounted senior step-up perpetual from the Philippines during the pandemic.

Globe President and Chief Executive Officer Ernest L. Cu said: “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,” he added.

Globe Telecom shares closed 4% lower at P3,022 apiece on Wednesday. — Arjay L. Balinbin