Globe, Landbank ink P7 B loan deal

Globe Telecom Inc. is borrowing P7 billion from state-run Land Bank of the Philippines to fund its capital expenditures.

In a disclosure to the Philippine Stock Exchange yesterday, Globe said it signed a seven-year P7 billion term loan facility with Landbank.

“The loan shall be used to finance the company’s capital expenditures,” the Ayala-led telco said.

Globe has set an initial capex guidance of $750 million this year.

Last September, it raised the capex guidance to $850 million for the year.

Globe said a large portion of this year’s capex is intended for data-related projects.

As of end-September, Globe has spent P36.8 bil- lion or $731 million in capital expenditures.

Of the total capex spent, 84 percent went to data-related projects as the company improves data network capacity and its coverage.

Earlier this year, Globe entered into loan agreements with different banks to finance the capex.

In August, Globe signed a seven-year and 10-year term loan facility worth $155 million with Metropolitan Bank and Trust Co.

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

Earlier, it also signed 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.