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Wednesday, April 9, 2014

Globe Telecom to issue P10B worth of preferred shares to fund 2014 capex

Globe Telecom Inc. is issuing P10 billion worth of preferred shares in July to fund its $650 million capital expenditures this year.

The Ayala-led telco will issue 20 million non-voting preferred shares after securing board approval, company officials announced during the annual stockholders' meeting in Makati City Tuesday.

"This will pretty much cover everything we need," CFO Alberto de Larrazabal told reporters in a briefing after the stockholders' meeting.

The issuance will be sometime in July as it will still have to go through regulatory approvals, he said.

The balance of the capex will be funded through debt towards the end of the year, Larrazabal  noted.

Globe announced last February it was earmarking $650 million as capex this year, a third of which would fund network transformation initiatives.

In December 2013, Globe said it borrowed P7 billion from state-owned Land Bank of the Philippines under a seven-year term loan agreement to partly fund its capital expenditures for 2014.

Source: GMA News

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