Metrobank extends P7B worth of loans to Globe
MANILA, Philippines – Metropolitan Bank & Trust Company (Metrobank) has extended P7 bilion ($148.29 million) loan facilities to Globe Telecom Incorporated, the bank announced Monday, November 23.
The loan will be used by the Ayala-led telco firm to finance its capital expenditures, which is set at expanding, enhancing its network.
Metrobank inked a 10-year loan facility worth P5 billion ($105.95 million) and another $45 million (P2.12 billion), 7-year facility with Globe, the bank said Monday.
“These respective 10-year and 7-year term loan facilities are meant to finance Globe’s capital expenditures for additional network capacity, which would handle the growing data traffic from Globe’s customers’ shift to a digital lifestyle,” the listed bank said in a statement.
Metrobank president Fabian Dee and Metrobank executive vice president Mary Mylene Caparas, as well as Globe president Ernest Cu and Globe chief financial officer Alberto de Larrazabal signed the loan agreements.
Globe is spending $800 million for its capital expenditures for 2016, lower than its $850 million allotment for this year.
Globe's investments covers domestic and international transmission facilities and is focused on data-related projects particularly its broadband network, wireless data, and long-term evolution (LTE) expansion.
Metrobank, meanwhile, reported a 25% jump to P13.3 billion ($281.70 million) in the first 9 months of the year on the back of growth in loans and deposits, contributions from fee based-income, and improved efficiencies with cost management.
The bank continued to pursue its coverage expansion strategy to improve customer accessibility.
As of end-September, the bank has a network of 939 branches and 2,183 automated teller machines nationwide. – Rappler.com