Globe to raise $120-M more for capex

MANILA, Philippines – Ayala-led Globe Telecom Inc. is in talks with financial institutions to raise $120 million to fund its 2013 capital expenditures.

This last tranche of the company’s financing program is targeted for completion within the first half of the year, said Globe CFO Alberto de Larrazabal at a press briefing on Tuesday, April 16.

“We have raised about $200 million so far and we need about $120 million equivalent more to go,” said Larrazabal.

“From a time perspective, this is something that we will more likely close towards the end of the first half of the year. As to whether we will be raising dollar financing or peso financing is still a bit early,” said Larrazabal.

The company’s 2013 capital expenditures are estimated to reach $450 million to $500 million.

The telco had raised $195 million from two loan facilities signed with foreign and domestic banks. Globe borrowed $120 million from George Ty-led Metropolitan Bank and Trust Co., and obtained $75 million from The Bank of Tokyo-Mitsubishi UFJ.

The company said that proceeds from the loan facilities would partially cover its 2013 capex budget.

Net income of Globe dropped 30% to P6.857 billion in 2012 from P9.832 billion in 2011. Revenues went up 6% to an all-time high of P82.742 billion from P77.76 billion. – Rappler.com