Globe signs $100-M loan with Bank of China

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GLOBE Telecom, Inc. announced on Monday that it signed a term loan facility with Bank of China (Hong Kong) Ltd. for $100 million.

“The loan will be used to finance the company’s capital expenditures (capex),” Globe said in a disclosure to the stock exchange on Monday.

Globe has said it expects to spend P70 billion this year. The company already spent more than P19 billion in the first three months of the year.

“Around 91% of the investment went to data-related requirements to support the fast-growing data usage and provide superior data customer experience,” the company said.

Among the priorities this year are the company’s “aggressive cell site builds, upgrade of all its sites to fourth generation/long-term evolution technology (4G/LTE), and fast-tracking the fiberization of Filipino homes nationwide,” Globe noted.

Globe’s attributable net income reached P7.31 billion in the first three months of the year, up 11% from P6.58 billion in the same period in 2020.

Its total revenues for the first quarter rose 4% to P42.85 billion from P41.19 billion in the same period last year.

Service revenues — which include mobile, home broadband, corporate data, and fixed line voice — increased 2.5% to P37.81 billion from P36.88 billion previously.

Globe Telecom shares closed 1.10% higher at P1,831 apiece on Monday. — Arjay L. Balinbin