Wednesday, March 27, 2013

Globe inks $120-M loan deal

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Ayala-led Globe Telecom earlier signed a $120-million loan facility with Metropolitan Bank & Trust Co. to fund its network modernization scheduled to be completed before the end of the year.


The fresh financing brings to $195 million the total loans signed by Globe, all for its network expansion, in the first quarter of 2013.


The network modernization program is expected to cost a total of $790 million, Globe officials earlier said.


“Proceeds of the loan will be used to finance the company’s capital expenditures, which include the ongoing network modernization and transformation program, and investments in fixed line, international cable facilities and IT infrastructure,” Globe told the local bourse in a disclosure.


Last month, Globe said its total capital expenditures or capex would be around $600 million.


For 2012, Globe Telecom reported record consolidated service revenues of P82.7 billion, 6 percent above previous year’s level of P77.8 billion, as the mobile and broadband segments delivered service revenues of P67.2 billion and P8.7 billion, respectively.


Net profit, however, fell by 30 percent to P6.9 billion in 2012 from P9.8 billion in 2011 due to higher costs related to the company’s modernization efforts last year.


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Short URL: http://business.inquirer.net/?p=114445


Tags: Business , Globe telecom , network modernization loan



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