Globe raising up to $225m to fund 2014 capex

Dylan Bushell-Embling
08 Aug 2014
00:00

The Philippines' Globe Telecom has secured regulatory approval to raise up to 10 billion pesos ($226.8 million) to fund its capex budget for the rest of the year.

The nation's Securities and Exchange Commission has approved Globe's proposal to place up to 20 million new shares at 500 pesos per share, InterAksyonreported.

The offering includes a 3 billion peso oversubscription allowance in the event of strong demand. Each share will accrue a dividend to be paid on a semi-annual basis.

Globe plans to spend between $500 million and $600 million in capex this year. In the first half, the company spent 11 billion pesos ($249.5 million), with 54% going towards data-related access and transport infrastructure, the operator revealed in its recently-released 1H results.

The company is expected to continue to spend the majority of its capex budget for the year on data-related investments, including its LTE rollouts.

Broadband was a strong contributor to Globe's 7% growth in revenue and 18% increase in core net income for 1H14.

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