• Globe steps up capital spending

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    Globe Telecom Inc. on Tuesday said that it has obtained the permit to sell from the Securities and Exchange Commission for its P7-billion fixed rate bonds, which will be used primarily to fund its capital expenditures.

    Globe earlier said that it planned to raise P7 billion in retail bonds in July to finance the portion of its capital expenditures for this year and some expenses related to Bayan Telecommunications’ debt reduction.

    The Ayala-led telecommunications firm also said that it is investing heavily on its network modernization program to further boost its current capacity.

    In line with this, Globe signed a $120-million term loan facility with Metropolitan Bank and Trust Co. (Metrobank) to also finance its capital expenditures.

    Globe said that proceeds of the loan will be used to finance its capital expenditures, which include ongoing network modernization and transformation program, and investments in fixed line, international cable facilities and information technology (IT) infrastructure.

    The Metrobank lending brings to $195 million the total loans obtained by Globe in the first quarter of 2013.

    Earlier, Globe also signed a $75-million term loan facility with The Bank of Tokyo-Mitsubishi UFJ Ltd. (Singapore branch).

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