Globe borrowing $155 M for capex

MANILA, Philippines -  Globe Telecom Inc. is borrowing $155 million from Metropolitan Bank and Trust Co. for capital expenditures this year.

In a disclosure to the Philippine Stock Exchange yesterday, Globe said it signed a seven-year and 10-year term loan facility with Metrobank.

“The loan shall be used to finance the company’s capital expenditures for the year,” the telco said.

Globe has spent around $550 million (P27.5 billion) capex as of end-June.

The funds were used primarily to support the growing demand for data across mobile, broadband and enterprise segments.

Globe has set its capex at $750 million this year.

Earlier this month, Globe president and chief executive officer Ernest Cu said the telco may raise the capex guidance for this year.

Globe is looking at increasing capex by $50 to $100 million to address the customers’ rising demand for data services.

“The progress of capex deployment in the third quarter of the year will determine whether Globe management will seek additional capex approval from its board,” Globe said.

The telco has earlier, entered into loan agreements with banks for its capex.

In April, it signed a 10-year term loan facility worth P8 billion with BDO Unibank Inc.

Earlier this year, it also entered into an eight-year term loan facility worth P7 billion with BDO, as well as a six-year term loan facility amounting to P7 billion with the Development Bank of the Philippines to fund the capex.

Globe’s core net income which excludes the impact of non-recurring charges, foreign exchange gains and mark-to-market charges, reached P8 billion in the January to June period this year, down 10 percent from P8.8 billion in the same period last year.

Its net income also slid 10 percent to P8.1 billion in the first-half this year from P9 billion in the same period a year ago.