Globe Telecom Secures $90m Loan

Globe Telecom Inc. signed a ten-year, US$90-million floating rate term loan facility with China Banking Corporation to finance its 2012 capital expenditures under it's US$790-million five-year massive network modernization and IT transformation program. The telco is boosting its voice and data capacity to meet the growing demand for broadband and mobile data use and expects US$640-million will be spent this year and in 2013. With the rapid penetration of social media and availability of more affordable smartphones among Filipino mobile phone owners, Globe looks at its broadband and data businesses as key focus areas that will sustain its growth So far, the China Bank loan was the first facility to be availed by Globe this year. In November 2011, international credit rating firm Fitch Ratings upgraded the company’s long-term foreign and local currency issuer default ratings (IDRs) to BBB- from BB+ with a stable outlook. As of end-September 2011, Globe had a debt-to-equity ratio of 1.04. For the first nine months ending September 30, 2011, the company’s service revenues reached P49.987-billion, with net income of P7.994-billion, which were 9% and 7% higher, respectively, than 2010 comparable figures.