Globe taps P5 billion DBP loan to fund capex

MANILA, Philippines — Telco giant Globe Telecom Inc. is tapping a loan facility from the Development Bank of the Philippines (DBP) to refinance debt and fund its capital expenditures.

In a disclosure to the Philippine Stock Exchange yesterday, the Ayala-led telco said it signed a P5-billion term loan facility with the DBP.

“The loan shall be used to finance the company’s capital expenditures and general corporate requirements, and refinancing of maturing obligations,” Globe said.

Globe has ramped up its capital spending to P63 billion this year from P43.3 billion last year to support the continued expansion and enhancement of its data network.

As part of its commitment to improve the state of the internet in the country, Globe said it remains on track to invest P63 billion this year, largely for data-related capex to enhance network data capacities and capabilities.

“This is in line with the capex guidance provided earlier in the year and is consistent with the push to ramp up investment spend in support of the Filipino’s shift to the digital lifestyle,” the firm said.

According to Globe, consumers’ shift to the digital lifestyle has led to mobile traffic in its network to rise to 1,200 petabytes in the nine months ending September, which already exceeds full year usage in 2018.

For next year, Globe chief technology and information officer Gil Genio earlier said the company is likely to maintain its current capex level.

He said the sustained high level of capex next year is likely to be driven by mobile data growth and the need to put up additional sites nationwide.

Globe has spent nearly P32 billion of its capex budget in the first three quarters to enhance its network’s data capacities and capabilities.

The company saw its core net income jumped by 20 percent from the January to September period to P17.9 billion from P14.9 billion in the same period last year, while consolidated service revenues increased by 13 percent to P110.6 billion as growth in data consumption persisted.

As of end-September, Globe’s total mobile subscriber base reached 97.4 million, five percent more than its subscriber count from the previous quarter.