Globe raises P25B from oversubscribed preferred issue

The Ayala Group’s Globe Telecom Inc. has successfully raised P25 billion from its follow-on offering of non-voting preferred shares, fully placing the issue under its shelf registration program.

The offer covered 12.5 million preferred shares priced at P2,000 each, including the full exercise of the oversubscription option. 

The shares are split into Series A (6.1179 percent dividend) and Series B (6.7631 percent), giving investors a higher yield for longer duration. 

The securities will list on March 2 under symbols GLOBA and GLOBB, with all shares immediately tradable. 

Proceeds will largely refinance Globe’s $600-million bonds due 2026, allowing the company to redeem them before step-up interest costs take effect later that year. 

The bonds carry an option for early repayment on Aug. 2, 2026, after which the coupon would rise starting Nov. 2, 2026 if left outstanding. 

The transaction marks the first tranche of Globe’s 20-million-share preferred shelf program in the local market.

The deal was led by BPI Capital, BDO Capital, and China Bank Capital alongside First Metro Investment Corp. and Security Bank Capital.

—Edited by Miguel R. Camus