Philippine cellco Globe Telecom has announced it signed a five-year PhP4bn (US$92.3m) loan facility with the Metropolitan Bank & Trust Co (Metrobank).
The money will be used to prepay part of its exiting debts and to fund part of its capex for next year,…
Philippine cellco Globe Telecom has announced it signed a five-year PhP4bn (US$92.3m) loan facility with the Metropolitan Bank & Trust Co (Metrobank).
The money will be used to prepay part of its exiting debts and to fund part of its capex for next year, the company said in a statement to the Philippine Stock Exchange.
“There is an opportunity for us to generate savings and at the same time lengthen our debt maturity profile. The funds will be used to prepay PhP3bn debt that will mature in 2012. The balance will be used to fund our capital expenditure requirements in 2011,” said Alberto de Larrazabal, Globe Telecom chief financial officer, in the statement.
Globe Telecom also explained that the term loan facility with Metrobank was the third loan signed by the company this year. In the first quarter, it inked a PhP2bn (US$46m) loan with Allied Bank.
In September, Globe Telecom closed a five-year PhP5bn (US$115.4m) term loan facility with the Development Bank of the Philippines. At the time, Larrazabal was quoted saying that the loan would be used to finance the addition of new mobile, broadband and international submarine facilities.
The company is owned by Singapore Telecommunications (45%), Ayala Corporation (34%) and public stockholders (21%).
