Globe inks P7-B term loan with BDO

GLOBE TELECOM, Inc. is taking on fresh debt worth P7 billion to finance part of its capital expenditure program this year, mainly for its network expansion and data-related projects.

The Ayala-controlled telecommunications company said in a disclosure to the Philippine Stock Exchange on Tuesday that it signed an 8-year, P7-billion term loan with Sy-led BDO Unibank, Inc., which will also be used to fund the firm’s general corporate requirements.

“Globe expects to spend capital expenditures for 2017 of around $750 million, of which majority will be invested in data-related projects, including spends for deployment of LTE mobile and LTE @Home, increased network capabilities and coverage, modernisation of fixed-line data infrastructure for corporates and requirements for transmission facilities,” the network said in its statement.

Globe Chief Finance Officer Rizza Maniego-Eala earlier said the company will need to tap other sources to fund its capex — including tapping the banks for bilateral loans. It also secured board approval to file for a shelf registration for Philippine retail bonds.

This year, Globe is planning to deploy around 1,800 LTE ( long-term evolution), 700 sites and 1,000 LTE, 2600 sites. It will also add 1,800 LTE, 1800 sites “in order to boost LTE capacity and coverage.”

The telco company ended 2016 on a high note, posting a 6% rise in its core net income — which excludes foreign exchange, mark-tomarket gains and losses, and non-recurring items — to P16.014 billion for 2016, from P15.126 billion in the previous year, an “alltime high” performance for the company.

Its consolidated service revenues during the period seen at P120 billion, also outpaced the previous record level of P113.7 billion in 2015 by 6%.

Shares in Globe shed P3 or 0.17% to close at P1,790 apiece on Tuesday.