Globe Telecom Inc., the country's second-largest mobile phone operator, plans to issue P5 billion worth of fixed rate and floating rate notes to partly fund its capital expenditures this year.

In a disclosure to the Philippine Stock Exchange, Globe said it will issue notes due 2014 and 2016, with First Metro Investment Corp., the investment banking arm of the Metrobank Group, as arranger.

Proceeds from the offer will be used to finance the company's capital expenditures and general corporate requirements.

Globe, owned by Singapore Telecommunications and local conglomerate Ayala Corp., has a spending budget of $350-$400 million this year, mainly for its consumer broadband business, including 3G and 2G.

For the first quarter of 2009, the company reported a net income of P4 billion, up 17 percent from P3.4 billion in the same period last year, owing to the steady performance of its wireless services as well as the sustained expansion of its broadband and wireline data segments.