Globe secures P5-B term loan

By Mediatrix P. Cristobal

MANILA, Sept 3 — Globe Telecom signed a five-year, P5-billion term loan facility with the Development Bank of the Philippines, capping its financing requirements for 2010.

Globe chief financial officer Alberto De Larrazabal said proceeds of the loan will finance the company’s capital expenditures, which include the build-up of additional mobile, wireline data, broadband and international submarine facilities to support its increasing subscriber base.

Globe’s capital expenditures are expected to reach $ 500 million this year.

The loan carries a floating interest rate.

The DBP loan is the second loan facility signed by Globe this year. In the first quarter of 2010, Globe inked a P2-billion loan with Allied Bank. As of end-June 2010, Globe’s debt-to-equity ratio was at 1:01.

Globe, whose principals are conglomerates Ayala Corp. and Singapore Telecommunications, posted a net income of P 5.1 billion in the first half of 2010.

As of end-June 2010, the company’s subscriber base reached 24.62 million, up three percent from the previous quarter’s 23.89 million, on the back of 732,000 net additions in the second quarter of the year.

Its broadband subscriber base also went up by almost three-fold from last year's 379,000 customers, to 930,000 subscribers, driven by growth in its users of its broadband service brand "Tattoo" as well as Globe WiMAX for at-home internet. (PNA) RMA/MPC

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