Globe taps Metrobank for P7-B loan

MANILA, Philippines - Globe Telecom Inc. has entered into a P7 billion loan agreement with Metropolitan Bank & Trust Co. (Metrobank) to fund its capital expenditures.

In a statement, Globe said the agreement covers a 10-year loan worth P5 billion and seven-year loan amounting to $45 million (P2.1 billion).

“This new loan facility from Metrobank will help us address the demands of our customers in their continuing shift to a digital lifestyle. Globe is committed to invest in additional network capacities to handle the robust growth in data traffic from our customers,” Globe chief finance officer Alberto de Larrazabal said.

As of the first semester, the telco has invested about P11.4 billion for capital expenditures.

The bulk of the investment was allocated for data-related projects, including investments for the company’s broadband network, capabilities for wireless data, LTE, and domestic and international transmission facilities.

Globe recently launched new data-related services to strengthen its position as the digital lifestyle purveyor of choice in the country.

Among its new services is Chromecast, a thumb-sized media streaming device that allows individuals to watch content from mobile devices on their television sets.

Chromecast is being made available in the Philippines by Globe via its partnership with Google.

Apart from Chromecast, Globe is also offering the Grocery app which enables online grocery purchases and home deliveries, and the Seats app for online  reservations in restaurants.

Globe has likewise partnered with online commerce platform Shopify to allow small and medium enterprises to have a presence in the Internet in a convenient way and at an affordable price.

As of the first-half, Globe’s core net income hit an all-time high of P8.6 billion, 14 percent higher than the P7.6 billion a year ago amid strong service revenues.

The company’s consolidated service revenues reached a record-high of P53.8 billion in the first semester, supported by the robust gains on mobile data and broadband.