Globe secures $120-M loan for operations
MANILA, Philippines - Ayala-led telecommunications firm Globe Telecom Inc. obtained a $120-million loan from Metropolitan Bank and Trust Co. (Metrobank) to fund its operations.
In a disclosure to the Philippine Stock Exchange on Monday, March 25, the company said loan proceeds would be spent for its capital expenditures in 2013. Globe's capital expenditures (capex) are estimated to reach $450 million to $500 million.
The capex would include expenses related to the firm's network modernization program, and investments in fixed line, international cable facilities and information technology infrastructure.
On March 7, Globe received a $75 million loan facility from Bank of Tokyo - Mitsubishi UFJ, Ltd. to partially cover its 2013 capex.
“The term loan facility with Metrobank brings to $195 million the total loans signed by Globe for the first quarter of the year,” the company said.
Globe is expected to complete the first phase of its $700-million network modernization and transformation program and its $90 million IT upgrade this month.
Globe's net income dropped 30% to P6.857 billion in 2012 from P9.832 billion in 2011. The company's 4th quarter earnings dropped 97% to P49 million from P1.8 billion. - Rappler.com