GLOBE Telecom Inc. sealed a deal with Banco de Oro Unibank Inc. (BDO) to partly finance capital expenditures (Capex) and prepay existing debts.

The cellular firm will borrow P7 billion from the bank. This is Globe’s first loan signed in 2011, which will be repaid in seven years.

“We intend to use the BDO facility to fund our capital expenditure requirements this year and prepay up to P3 billion in loans that will originally mature in 2012. The current low interest rate environment allows us to replace these loans with cheaper debt, generating savings for the company,”  said Albert De Larrazabal, chief financial officer.

The firm’s capital expenditures reached $500 million last year, higher than the previous year’s $350 million. Globe did not disclose as to how much it is setting aside for capex this year although in November last year, De Larrazabal said the cellular firm is looking at allocating less than $500 million.

As of end-September 2010, Globe’s debt-to-equity ratio was at 1.16.

The company is expected to spend more for network expansion as it vowed to employ a “multipronged” strategy to expand capacity and improve performance this year.

“This year, we will continue to build on service quality as a key differentiator for Globe. We will implement a proactive approach in meeting the upsurge in voice and data requirements across all customer segments, including the larger enterprises. Optimizing our existing assets will help ensure a wider coverage, whether indoors or outdoors. We will also improve power and transmission management to meet our quality objectives in terms of network availability and capacity,” said president Ernest Cu.

The cellular firm will release its 2010 full-year results on Thursday. Globe recorded over 25 million cellular subscribers last year.

The planned network capacity expansion has the full support of the firm’s board, which recently approved a “significant amount” for this project. 

Separately, Globe announced that it launched a consumable Internet offer for its mobile subscribers based on surfing hours.

Globe Powersurf allows prepaid subscribers to control surfing hours based on their specific browsing needs and activities.

Currently available in three-hour and five-hour variants, Globe Powersurf introduced its latest one-hour variant, Powersurf 15. For P15, subscribers can surf the Internet for an entire hour.