Philippine fixed-line telephone provider Globe Telecom has secured a five-year PHP5bn (US$112m) loan facility from the Development Bank of the Philippines in order to finance its expansion plans this year, according to local reports.
More specifically,…
Philippine fixed-line telephone provider Globe Telecom has secured a five-year PHP5bn (US$112m) loan facility from the Development Bank of the Philippines in order to finance its expansion plans this year, according to local reports.
More specifically, Globe CFO Alberto de Larrazabal said that the loan would be used to finance the addition of new mobile, wireline data, broadband and international submarine facilities.
This is the second time this year that the company has raised finance to fund its capital expenditures. Earlier this year, Globe obtained a PHP2bn (US$45m) loan from Allied Banking, the Manila Times reported.
Ernest Cu, president and CEO of Globe, told shareholders at an annual meeting in April that “competition in the telecommunications sector should be expected to remain intense with continued pressure on margins and profitability as more unlimited offers and cut-throat pricing from competitors will likely temper our 2010 growth.”
For 2010, Globe’s capex is expected to reach US$500m, according to the reports. The company is owned by Singapore Telecommunications (45%), Ayala Corporation (34%) and public stockholders (21%).
Globe was not available for comment by press time.
