Globe taps China Bank for P5-B loan facility

Ayala-led Globe Telecom Inc. on Tuesday said it signed a P5-billion term loan facility to partly finance the company's expenses.

In a regulatory filing submitted by Globe director Jose Mari Fajardo, the company said the additional funding will be used for capital expenditures.

"Globe Telecom Inc. signed P5 billion term loan facility with China Banking Corporation. The loan shall be used to partially finance the company's capital expenditures," the filing read.

The company in January said it plans to spend $850 million this year, in efforts to improve its internet services in the country.

“Majority of the company’s capex for 2018 is geared to meet customer demand for more bandwidth-intensive content, which, in turn, will support the revenue momentum of our data-related services”, Globe president and CEO Ernest Cu said then.

Cu also earlier said the company has progressively increased its capital spending since 2015, averaging 31 percent annually on a capex-to-revenue ratio basis.

Globe also in March signed two loan facilities—a P5 billion and $20 million seven-year term loan—with Mizuho Bank Ltd., also to partly finance its capital expenditures.

"For the first nine months of 2018, Globe invested around P32.5 billion in capital expenditures to support the growing subscriber base and address its rapidly changing and rising demand for data," said the company. — BM, GMA News