GLOBE Telecom Inc. has signed a loan package with Metropolitan Bank and Trust Company (Metrobank) to finance its capital expenditures for the year in line with its data expansion plans.
In a statement issued on Friday, Globe said it signed a P5-billion, 10-year loan and a $45-million, seven-year term loan.
“This new loan facility from Metrobank will help us address the demands of our customers in their continuing shift to a digital lifestyle. Globe is committed to invest in additional network capacities to handle the robust growth in data traffic from our customers,” said Alberto de Larrazabal, Globe’s chief financial officer.
This year, Globe has budgeted a capital spending of $850 million or P39 billion, of which P11.4 billion was already used in data-related projects in the first six months of 2015. The spending covered investments in broadband network, wireless data, LTE, and domestic and international transmission facilities.
In the first half of the year, Globe’s core net profit increased by 14 percent toP8.6 billion from a year earlier. It posted a 13-percent growth in revenues at P53.2 billion from P47.7 billion on gains in mobile data and broadband subscribers.
Globe is one of the two major telecommunications providers in the country. Its main brands include Globe Postpaid, Globe Prepaid, TM or Touch Mobile, and payment and remittances services GCash.