Globe signs $75-M loan to fund modernization

MANILA, Philippines – Ayala-owned telecommunication company Globe Telecom signed a US$75 million (P3.06 billion) loan with The Bank of Tokyo-Mitsubishi UFJ, Ltd. to fund its ongoing network modernization and transformation program. 

The company said in a March 7 statement that the proceeds from the term loan facility would partially cover the 2013 capital expenditure budget of between $450 million and $500 million. This is part of the two-year $700 million initiative announced in 2012. 

The term loan is part of the plans to raise $320 million to $350 million for the 2013 spending plans through a combination of internally-generated funds and debt, explained Globe chief financial officer Alberto de Larrazabal. 

Aside from the term loan, Larrazabal added that they are considering issuing peso bonds and availing of bilateral peso loans. 

In a disclosure to the PSE, Globe said that its capital expenditures for 2013 would also cover fixed line, international cable facilities, and information technology infrastructure investments.

Of this almost half a billion dollar capex this 2013, $160 million to $200 million will be directed towards transformation initiatives while $290 million will be allotted for investments in fixed lines, international cable facilities, and IT infrastructure.

Globe is expected to complete the first phase of its network modernization and transformation program in March. 

Globe also scheduled to start an IT upgrade program worth $90 million.

Globe registered a 2% increase in its core net income for 2012. As of the end of December 2012, its subscribers base grew by 10% to P33.12 million. – Rappler.com