Globe Telecom Signs P7-B Term Loan with PNB

Globe Telecom, Inc. has signed a 7-year, P 7-billion term loan with the Philippine National Bank, the proceeds of which will be used to finance the telecom company’s capital expenditures (CAPEX) and general corporate requirements for 2015.

According to a recent disclosure, the new programmed CAPEX of Globe for 2015 would be approximately $650 million, of which 75% would be for data-related projects as the demand for data and internet connectivity grows. These include investments for its Tattoo LTE mobile and Tattoo Home Broadband, particularly broadband DSL augmentation, mobile and wireless broadband capacities and coverage rollout for 3G, HSPA+ and DSL network, as well as capacity upgrades for transmission, international cable facilities and its core network.

The balance of the CAPEX it said would be spent for investments in new platforms and business support systems in line with product innovations, store deployment and other corporate requirements. Globe also noted that its programmed CAPEX remains consistent with the original CAPEX program earlier guided.

Globe’s 2014 consolidated service revenues reached a new high of P99.0-billion, besting the previous mark of P90.5-billion in 2013. The company’s core net profit also reached a record level of P14.5-billion, which was 25% higher than the previous year, driven by the solid performance of its business segments amid sustained demand for data connectivity across the mobile, broadband and fixed line data businesses.