Metrobank, Globe Telecom sign P2.5B loan deal

MANILA, Philippines- Metropolitan Bank & Trust Co., the country’s largest lender, on Monday disclosed that it has signed a P2.5 billion, 5-year, term loan facility with Globe Telecom Inc. In a statement to the Philippine Stock Exchange, Metrobank said the loan would be used to finance Globe's capital expenditures for network enhancement and capacity expansion. Metrobank said a huge chunk of the proceeds would be used to improve Globe's core mobile services, as well as wired and wireless broadband technologies. Part will also be to finance Globe's participation in the TGN-Intra Asia Cable System, an international submarine cable project spearheaded by VSNL International of India, which will link the country to Japan, Hong Kong, and Singapore with onward connectivity to the US. Globe, the country's second-largest phone firm after Philippine Long Distance Telephone Co., will be the exclusive landing party in the Philippines to this cable system. “Year after year, Globe has consistently proven its ability to grow earnings and profits. Last year was no exception as the company registered record growth in subscriber base and earnings. This loan clearly demonstrates our solid confidence in Globe’s long term prospects. And we look forward to further establishing ourselves as Globe’s strategic partner for the long haul." Metrobank executive vice president Vicente R. Cuna, Jr. said. The deal is Metrobank’s latest lending activity to large corporate accounts in line with its pursuit of growth and sustained leadership in the banking and financial sector. - GMANews.TV