Globe Signs $90M Term Loan with China Bank
Mandaluyong–(PHStocks)–Globe Telecom Inc. (PSE: GLO) signed a 10-year, $90 million floating rate term loan facility with China Banking Corporation as lender. This is the first loan facility to be availed by Globe this year.
The loan proceeds will be used to finance capital expenditures for 2012, which includes the company’s $790 million investment for its five-year massive network modernization and IT transformation program to boost voice and data capacity in anticipation of the growing demand for broadband and mobile data use. Of this amount, $640 million will be spent this year and in 2013.
With the rapid penetration of social media and availability of more affordable smartphones among Filipino mobile phone owners, Globe looks at its broadband and data businesses as key focus areas that will sustain its growth momentum for the year. Just recently, Globe unveiled its new and stronger line-up of mobile and at-home broadband plans with faster speeds to give its growing subscriber base better surfing experience anytime of the day.
In November 2011, international credit rating firm Fitch Ratings upgraded the company’s long-term foreign and local currency issuer default ratings (IDRs) to BBB- from BB+ with a stable outlook.
As of end-September 2011, Globe had a debt-to-equity ratio of 1.04. For the first nine months ending September 30, 2011, the company’s service revenues reached PhP49.987 billion, with net income of PhP7.994 billion, which were 9% and 7% higher, respectively, than 2012 comparable figures.