• Globe: 2018 capex may be set at $850M

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    AYALA-LED Globe Telecom may set its capital expenditure (capex) budget at $850 million (P43.7 billion) for next year, a top executive said on Wednesday.

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    Ernest Cu, Globe chief executive officer and president, told reporters on the sidelines of the Digital Congress 2017 held in Pasay City that while the company’s capex guidance for 2018 has yet to be announced at the end of the year, Globe tries “to keep it around the same level year on year.”

    Last week, Globe Chief Financial Officer Rizza Maniego-Eala said the telco was looking to issue retail bonds to support its financial requirements next year.

    She noted that Globe’s board of directors earlier this year had already approved a plan to raise P40 billion from a retail bond issue.

    Eala added the company has already completed its funding requirements for this year.

    Globe had originally set its capex for this year at $750 million, but later raised it to $850 million to support its vision to strengthen and expand its data segment, deploy long-term evolution (LTE) service using the 700 megahertz (MHz) and 2600 MHz frequencies, and increase 3G capacity and mobile coverage.

    To partially finance its 2017 capex, Globe tapped several banks including Metropolitan Bank & Trust Company from which it recently secured a $155-million (P7.9 billion) term loan facility.

    In February, Globe inked a P7-billion term loan with BDO Unibank and a P7-billion six-year term loan facility with the Development Bank of the Philippines. This was followed by another P8-billion loan deal with BDO in April.

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