Globe completes fund raising for 2018 capex

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AYALA-LED Globe Telecom Inc. has completed raising funds for this year’s capital expenditure (capex) requirements.

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“We’re done with [the required]fund raising,” Rizza Maniego-Eala, Globe chief financial officer told reporters on the sidelines of an event Thursday night.

The company announced in late September that it was raising its spending budget for this year to $850 million (P43.5 billion) to fund its mobile data expansion program. The initial budget was $750 million (P38.4 billion).

Globe announced in May that it planned to raise P20 billion from bank loans and the issuance of retail bonds to partially finance its capex requirements for this year and next.

On the plan to issue retail bonds worth P40 billion which the company’s board of directors had already approved several months ago, Eala said, “That’s an option for next year.”

To finance the capex program, Globe secured term loan facilities from various banks. In February, it signed 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 the signing of another P8-billion loan deal with BDO in April.

In August, the company announced it secured a $155-million (P7.9 billion) term loan facility with Metropolitan Bank & Trust Company.

Globe said that for the first half of the year, it had already spent $550 million (P27.5 billion) of its programmed capex.

The telco reported net income of P8.1 billion in the first half of this year, down 10 percent from P9 billion in the same period last year.

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