Globe Telecom Inc. has secured a $100-million loan from the Bank of China (Hong Kong) Ltd., which will help bankroll the company’s capital expenditures (capex) for 2021, according to a disclosure to the stock exchange.
The telco said it intends to spend P70 billion in capital outlays this year, as it expands and upgrades its wireless and fixed line networks.
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.
“The record-breaking capital expenditure supports Globe’s continuous modernization of its network to make 5G as well as fiber technology available to customers in more areas in the country,” the disclosure read.
So far, Globe has spent P19.1 billion of its programmed capital for the year, exceeding the year prior by 79 percent.
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.
In December 2020, the company announced that it secured a P5-billion loan from the Land Bank of the Philippines to help bankroll the company’s general financing and corporate requirements for capex.
Globe said it has laid out a 3-pronged strategy for its network upgrades and expansion, which includes aggressive cell site builds; upgrading its cell sites to 4G/LTE using many different frequencies; and fast tracking the fiberization of Filipino homes nationwide.
“The company likewise champions the United Nations Sustainable Development Goals, specifically UNSDG No. 9 which recognizes the importance of infrastructure and innovation as crucial drivers of economic growth and development. Globe has vowed to uphold the 10 United Nations Global Compact principles and 10 UN SDGs.”