Globe Telecom Inc. has raised P12 billion in fresh capital after two local banks extended loan facilities to the telco to bankroll the company’s massive capital investments for the year.
In a disclosure to the stock exchange, Globe said it has signed a P7-billion term loan facility with Philippine National Bank (PNB) and another P5-billion loan with China Banking Corp.
“The loans shall be used to finance the company’s capital expenditures,” the disclosure read.
Globe is spending P70 billion in capital expenditures (capex) this year, higher than the P60.3 billion capex spent in 2020 to further modernize its mobile and fixed line networks.
“The record-breaking capital expenditure supports Globe’s continuous modernization of its network to make 5G as well as fiber technology available to more customers nationwide as part of the company’s effort to help the country achieve a First World Network,” the disclosure read.
Bulk of the capital or about 91 percent will be invested in data-related requirements “to support the fast-growing data usage and provide superior data customer experience.”
This includes the deployment of fiber optic cables, the construction of new cell sites, and the upgrading of existing towers to host 4G antennae.
In May Globe announced that it secured a $100-million loan from the Bank of China (Hong Kong) Ltd., which will help bankroll the company’s capital expenditures for 2021.
Globe posted an 11-percent increase in net profits during the first quarter of the year to P7.30 billion from P6.69 billion the year prior, thanks to a new law on corporate income taxes.
Image courtesy of www.globe.com.ph
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