Globe Telecom Inc. said on Thursday that it signed a 7-year P7-billion term loan with Land Bank of the Philippines to finance the company’s capital expenditure next year.
Globe said in its filling with the Philippine Stocks Exchange (PSE) on Thursday that proceeds of the loan will be used to finance the company’s general and corporate requirements for capital expenditures for 2014.
Earlier, a top official of Globe said that the company was done with its foreign borrowings for this year, which runs to an aggregate of about $400 million to partly finance the company’s capital expenditure requirements for 2013 and pre-pay expensive debt.
“So were done with it [foreign borrowings for 2013]. The remaining $40-million [three-year loan term facility with Mizuho Bank Ltd.] is part of it,” said Alberto de Larrazabal, chief financial officer of Globe.
He added that, “We’re looking for opportunity to go to the market early but like I said, our requirement for this year were [already]done.”
Earlier, Globe said that its board of directors approved the company’s plan to issue P7 billion in retail bonds within the year to finance its 2013 capital expenditures.
In a recent disclosure to the PSE, Globe said that its “board of directors approved the company’s plan to issue a P7-billion retail bond within the year to partly finance the capital expenditure requirements for 2013 and pre-pay expensive debt.”
Globe is investing heavily on its network modernization program to further boost its current network capacity.
In line with this, Globe signed a $120-million term loan facility with Metropolitan Bank and Trust Co. (Metrobank) to finance its capital expenditures.
Globe said that proceeds of the loan will be used to finance its capital expenditures, which include the ongoing network modernization and transformation program, and investments in fixed line, international cable facilities and information technology infrastructure.
Globe also signed a $75-million term loan facility with The Bank of Tokyo-Mitsubishi UFJ Ltd. (Singapore branch).
The loan facility with Metrobank brings $195 million the total loans obtained by Globe for the first quarter of 2013.
On July 31, Globe obtained a $40-million loan from a Japanese bank to restructure its debt profile.
The Ayala-led company is spending $700 million to finance its network modernization program.
In the first nine months of the year, the company’s consolidated service revenues reached P67.3 billion which was 10 percent higher than last year.
Globe’s revenue growth continued to be broad-based, with the mobile, broadband and fixed-line data businesses delivering solid year-on-year results of 8 percent, 22 percent and 12 percent, respectively.
The company’s consolidated earnings before interest, taxes, depreciation, and amortization increased from last year’s level by over P1.1 billion to P28.3 billion, as revenue gains fully offset the increase in operating expenses.
Also, Globe posted a core net profit of P9.5 billion, a 9-percent rise from a year earlier despite the ongoing network modernization and information technology transformation program, and amid intense competition.