5 Dec 2013
The Philippines’ second largest communications provider Globe Telecom has inked a PHP7 billion (USD159.9 million) seven-year term loan with the country’s Land Bank, to help fund its CAPEX requirements in 2014. The company has yet to finalise its exact capital expenditure budget for fiscal 2014, but the figure is forecast to be in the region of USD450-USD500 million. To date, Globe has secured USD235 million from domestic and international banks to fund its investment plan and restructure its debt. Additionally, Globe has been granted approval from the financial watchdog, the Securities and Exchange Commission (SEC), to issue up to PHP7 billion worth of seven-year fixed rate bonds (due 2020), and ten-year fixed rate bonds (due 2023), again to fund its CAPEX and trim debt. The SEC approval came in June.
Globe Telecom is a joint venture between domestically owned conglomerate Ayala Corp and Singapore Telecommunications (SingTel). It is currently seeking approval to take over struggling Lopez-owned Filipino operator Bayan Telecommunications Holdings (Bayan) through a debt-to-equity conversion.