Mobile phone operator Globe Telecom yesterday said it will raise the size of its planned bond offer from P4 billion to P5 billion.

Globe, owned by Ayala Corp. and Singapore Telecommunications, said it had agreed with its underwriters to increase the oversubscription option from P1 billion to P2 billion.

The company earlier signed an underwriting agreement with BPI Capital Corp., BDO Capital Corp. and First Metro Investment Corp. as lead underwriters for a P3-billion corporate bond issuance.

It also engaged RCBC Capital Corp. and Vicsal Investment Inc. as co-lead underwriter and participating underwriter, respectively for the bond issuance, which will be offered from Feb. 12 to 19.

The P3-billion bond issuance will consist of three-year and five-year bonds.

?Assuming that the oversubscription option is fully exercised, Globe would issue up to P5 billion in aggregate principal amount of retail bonds on Feb. 25,? the company said.

The P3-billion bond issuance will consist of three-year and five-year bonds.

The three-year bonds maturing by February 2012 will carry a coupon rate of 7.5 percent, while the five-year bonds maturing by February 2014 would have an interest rate of 8.0 percent.

Interest payment will be made quarterly.

?The proceeds will be used to fund Globe?s various capital expenditures,? the company said.

In January this year, the telecom operator, owned by Ayala Corp. and Singapore Telecommunications Ltd., said it secured a $66-million loan from Singapore branch of Norddeutsche Landesbank Girozentrale. Roderick T. dela Cruz