Globe Telecom Sets 6.7631% Dividend for up to P25B Perpetual Preferred Share Offering

Why It Matters

The high‑yield preferred issue gives Globe a low‑cost funding source while offering investors an attractive yield relative to local bonds. It also signals confidence in the company’s growth strategy amid intense competition in the Philippine telecom sector.

Key Takeaways

• Up to 6.7631% dividend on perpetual preferred shares
• Offering 7.5 million shares at ₱2,000 each
• Potential raise up to ₱25 billion, base ₱15 billion
• Non‑voting shares target institutional investors
• Strengthens Globe’s balance sheet amid competitive telecom market

Pulse Analysis

Globe Telecom’s decision to tap the market with a perpetual preferred share issuance reflects a broader trend among capital‑intensive telecom operators seeking stable, long‑term financing. By offering a 6.7631% dividend, the company positions the instrument as a hybrid between equity and debt, delivering a fixed income stream while preserving shareholder control. This structure is especially appealing in the Philippines, where interest rates have risen and investors are hunting yield beyond traditional government bonds.

From an investor standpoint, the non‑voting nature of the shares reduces governance risk, while the perpetual feature eliminates maturity pressure, making the offering comparable to high‑grade corporate bonds with a premium yield. Institutional buyers, who dominate the Philippine capital markets, view the dividend rate as competitive against regional telecom peers and as a hedge against currency volatility. The pricing at ₱2,000 per share also signals confidence in Globe’s credit profile, supported by its strong cash flow and market leadership.

For Globe, the anticipated ₱25 billion capital boost will reinforce its balance sheet, fund 5G rollout, and accelerate debt amortization. Strengthening liquidity positions the telco to outpace rivals in network expansion and digital services, crucial in a market where data consumption is surging. Moreover, the successful placement could set a precedent for future preferred‑share programs, offering a replicable model for other Southeast Asian operators seeking cost‑effective financing amid tightening credit conditions.

Deal Summary

Ayala‑led Globe Telecom announced the final dividend rates for its upcoming perpetual preferred share offering, targeting up to P25 billion in proceeds. The base offer comprises 7.5 million non‑voting preferred shares at P2,000 each, with a dividend rate of up to 6.7631%, potentially raising up to P15 billion initially.