Globe secures Metrobank loans; ties with Cherry Mobile in bid to attract 3m PAYG users

24 Nov 2015

The Philippines’ Metropolitan Bank and Trust Co (Metrobank) has extended loans totalling PHP7 billion (USD148.8 million) to Ayala-led Globe Telecom to finance the telco’s ongoing capital expenditure programme. The bank announced the signing of a ten-year loan facility worth PHP5 billion to run alongside a USD45 million seven-year facility with the carrier. In a statement, Metobank said: ‘These respective ten-year and seven-year term loan facilities are meant to finance Globe’s capital expenditures for additional network capacity, which would handle the growing data traffic from Globe’s customers’ shift to a digital lifestyle.’ The operator is ploughing USD800 million into its networks and services in 2016, compared to the figure of USD850 million committed this year. The CAPEX is being set aside for both domestic and international transmission facilities, with a specific focus on data-related projects, particularly its broadband network, wireless data and LTE expansion drive.

In a separate announcement, Globe has confirmed that it plans to team up with local handset maker Cherry Mobile in an effort to boost its pre-paid customer base by two to three million users. As such, Cherry Mobile will help Globe to launch a range of PAYG SIM card and handset bundles under the banner ‘Cherry Prepaid powered by Globe’, which aim to provide an affordable package for the lower-income demographic. In total, three different plans are offered: Lite (PHP399), Big Time (PHP999) and Partner (PHP1,699). A SIM-only option is also available for PHP29.

Philippines, Globe Telecom (incl. Innove)