A top official of Globe Telecom said recently that the company is 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.
“If anything the reason why we raise funds is in advance for 2014 for next year. We’re looking for opportunity to go to the market early but like I said, our requirement for this year were [already]done,” he added.
Earlier Globe said that its board of directors approved the company’s plan to issue a P7-billion retail bond within the year to finance its 2013 capital expenditures.
In a disclosure to the Philippine Stock Exchange recently, 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.”
Earlier, Globe said that it 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 ongoing network modernization and transformation program, and investments in fixed line, international cable facilities and information technology infrastructure.
Earlier, 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 signed 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.
Rosalie C. Periabras