Globe signs P7.6-B loan with Japan’s Mizuho to support capex

GLOBE TELECOM, INC. has signed a ¥20-billion (around P7.6 billion) term loan facility with Mizuho Bank, Ltd., a major Japanese commercial bank, to partially finance its capital expenditures (capex), debt refinancing, and other corporate requirements for the year.

In a stock exchange disclosure on Wednesday, the Ayala-led telco said it had invested approximately P31.4 billion in capex for the first nine months of 2025, down 23% from P41 billion in the same period last year.

The company said its full-year 2025 capex is expected to fall below $1 billion, reflecting a strategic shift toward targeted investments and reinvestment of proceeds from tower sales for the remainder of the year.

“By pursuing focused investments and innovation shaped around customer demand, Globe continues to empower more Filipinos to thrive in a digitally connected economy,” the company said.

Globe noted improvements in capital efficiency, saying its cash capex-to-revenue ratio improved to more sustainable levels at 26% from 33%, while the capex-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio narrowed to 49% from 63%.

“These improvements pave the way for targeted network initiatives for the remainder of the year and strengthen Globe’s positive free cash flow position,” the company added.

“Consistent with prior periods, approximately 89% of capex was allocated to data-related projects, reaffirming Globe’s commitment to advancing digital capacity and expanding connectivity nationwide,” it also said.

For Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., Globe’s reliance on debt financing is strategic, as it helps ease the immediate strain on the company’s internal cash flow while still funding critical network investments.

“Also, by refinancing existing liabilities, they may be optimizing their cost of capital, extending maturities, or reducing their interest burden, which is prudent in a capital-intensive business like telecom,” he said in a Viber message on Wednesday.

He also noted that borrowing carries risks, particularly given the volatility of local and foreign currencies, which could expose Globe to foreign exchange and interest rate risks.

“Overall, I view Globe’s approach as relatively balanced and disciplined. They are not over-leveraging; rather, they’re strategically layering in external funding to preserve liquidity, while using internal cash flow improvements to underpin their network investments,” he said.

For the three months ending September 2025, Globe reported a 12.79% drop in attributable net income to P5.25 billion from P6.02 billion a year ago, on slightly lower revenues of P44.36 billion, down 1.68% from P45.12 billion.

For the January-to-September period, attributable net income rose 14.04% to P17.69 billion, while revenues fell 2.34% to P131.59 billion.

Earlier this year, Globe also signed P20 billion in loan facilities with local banks BDO Unibank, Inc. and Metropolitan Bank & Trust Co. to fund its 2025 capex and reduce debt.

At the local bourse on Wednesday, shares in Globe closed P4, or 0.25% higher, at P1,629 apiece. — Ashley Erika O. Jose