Globe signs loan deal with Mizuho Bank

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GLOBE Telecom, Inc. has sealed two loans from Mizuho Bank Ltd. to finance its capital expenditure program this year.

In a disclosure to the stock exchange, Globe said the P6-billion and $20-million seven-year term loan facilities will be used to partially cover its capex and general corporate requirements.

Globe earlier announced that it will be spending a capex of $850 million this year, in a bid to boost Internet services and support the needs of up to two million households by 2020. Part of the capex will also be for multiple-input, multiple-output technology, designed to expand and enhance its long term evolution network.

The company said it spent around P42.5 billion in 2017, roughly the same level as this year’s capex, to support the demand of its growing subscriber base.

The Ayala-led telecommunications giant saw its net profit drop by 5% to P15.08 billion in 2017, dragged lower by the interest expenses and spectrum amortization related to its acquisition of San Miguel Corp.’s telco assets. Its revenues increased by 6% to P127.9 billion for the year.

This year, Globe is keeping its targets conservative, projecting a 4% increase in revenues given the high base in 2017.

Shares in Globe were down by 0.57% or P10 to close at P1,750 each at the Philippine Stock Exchange on Tuesday. — Arra B. Francia