Globe taps Metrobank for P10-B loan to fund capex

Ayala-led Globe Telecom on Wednesday said it has closed a loan deal with Metropolitan Bank & Trust Company (Metrobank) to fund its capital expenditures.

In a disclosure to the Philippine Stock Exchange on Wednesday, Globe said it signed a term loan facility with Metrobank for P10 billion.

“The loan shall be used to finance the Company’s capital expenditures,” the telco said.

In 2020, Globe spent a record level of P60.3 billion for capital expenditures.

The amount represented 41% of gross service revenues and 82% of earnings before interest, taxes, depreciation, and amortization (EBITDA).

Globe said the majority of the capex or about 86% last year went to data-related requirements to meet the growing data demands of Filipinos nationwide.

The telco is expecting to spend a new record of P70 billion for capital expenditures in 2021.

The company’s network roll-out strategy includes aggressive cell site builds, upgrade of all its sites to Fourth Generation/Long-Term Evolution technology (4G/LTE), and fast- tracking the fiberization of Filipino homes nationwide.

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, it said. -MDM, GMA News