Globe inks P15 billion term loan facilities

MANILA, Philippines — Globe Telecom Inc. has secured loan deals worth P15 billion with two local banks to fund this year’s capital spending and refinance existing debt.

In a disclosure, Globe said it signed term loan facilities with BDO Unibank Inc. and Land Bank of the Philippines for P10 billion and P5 billion, respectively.

“The loans shall be used to finance the company’s capital expenditures, debt refinancing and for general corporate requirements,” the Ayala-led telco said.

Globe last August hiked its capital spending program for 2021 to P76 billion from P70 billion.

The company invested a record-high level capital expenditure of P65.4 billion as of end-September, surpassing last year’s full year investment of P60.3 billion.

Majority or about 84 percent of the capex investment during the nine-month period went to data network builds to address and elevate mobile and internet experience for a greater number of its users.

As part of Globe’s campaign to deliver first-world connectivity to Filipinos, the company sustained its network build momentum with 1,080 new cell sites, upgrading at least 12,900 sites including both 4G LTE and 5G, and installing over one million fiber-to-the-home lines, which already surpassed this year’s full-year target.

Last October, Globe also made a successful return to the international capital markets, raising $600 million to support its war chest.

Net proceeds from the issuance will be used by Globe to finance capital expenditures, maturing and/or existing obligations, and for general corporate requirements.