Globe signs P5-billion loan facility for capex

GLOBE TELECOM, Inc. announced on Thursday that it had signed a P5-billion loan facility with the Land Bank of the Philippines.

In a disclosure to the stock exchange, the Ayala-led telco said the loan would be used to finance its general financing and corporate requirements for capital expenditures (capex).

Globe said it spent P33.4 billion for capital expenditures as of end-September.

More than 80% was spent on data-related requirements, it added.

“This investment has benefitted Globe’s customers as evidenced in the latest global report of Opensignal naming Globe as one of the most improved telecommunication companies in the world in terms of video experience,” Globe noted.

The telco expects to meet in this quarter its full-year guidance of capital expenditures amounting to P50 billion.

It continues to focus on “increasing capacity and upgrades nationwide for better internet experience for Filipinos,” it added.

Globe President Ernest L. Cu said on Tuesday that the company is hoping to complete its network upgrades by next year to immediately address the rising demand for connectivity.

The company recently reported a 22% drop in its attributable net income for the third quarter to P4.39 billion.

Globe is also hoping that its fourth-quarter performance will be better than the third quarter as the economy gradually reopens.

Globe shares closed 1.50% higher at P2,030 apiece on Thursday. — Arjay L. Balinbin