The Philippines’ second largest telecommunications company by subscribers, Globe Telecom, is reported to be in talks with up to 13 banks – both local and foreign – as it seeks to secure a further PHP7 billion (USD156.9 million) in loans to help fund its 2015 CAPEX plans. Rappler cites Globe chief financial officer Alberto Larrazabal as saying that the loans it is seeking will likely have a seven- to ten-year maturity and will help finance the group’s overall capital spending that is expected to reach USD650 million this year – a similar figure to the amount spent in 2014.
As previously reported by TeleGeography’s CommsUpdate, Globe Telecom booked a 25% year-on-year increase in core net income to a record PHP14.50 billion in FY 2014, fuelled by continued growth at its mobile, broadband and fixed line data businesses. In what the operator’s president and chief executive officer Ernest Cu described as a ‘banner year’ for Globe, the carrier booked its ‘best-ever consolidated service revenues, EBITDA, net income and core net income, despite intensifying competition’. Globe recorded service revenue of PHP99.0 billion last year, a 9% increase from PHP90.50 billion in 2013 and net profit soared 170% to a record PHP13.37 billion, as subscriber numbers surged by 14% to 44.04 million.