Globe Telecom signs USD430m loan with Metrobank

Globe Telecom of the Philippines has signed a PHP20 billion (USD430.2 million) loan deal with Metropolitan Bank and Trust Co as part of a plan to fund its share of the acquisition of San Miguel Corp’s (SMC’s) telecommunications unit, Vega Telecom, announced on 30 May 2016. In a stock market filing, Globe said it has secured a twelve-year and 15-year term loan facility with the bank to pay for its 50% share of Vega, along with half of two other companies, Bow Arken Holdings and Brightshare Holdings. The total valuation of the deal is PHP70 billion, of which the Vega Telecom buyout represents PHP69.1 billion, including approximately PHP17 billion in liabilities. The Inquirer newspaper notes that Bow Arken and Brightshare were also jointly acquired by PLDT and Globe last May, with the intention of unlocking valuable but unused telecommunications frequencies controlled by SMC, particularly its 700MHz spectrum.