Globe Telecom Inc. has signed P7.04 billion in loan facilities from a Japanese bank to fund the company’s capital expenditures (capex) for 2018, a disclosure to the local bourse showed.
According to the regulatory filing, the company signed two separate loan deals with Mizuho Bank Ltd., one involving P6 billion in borrowings and another $20 million. Both have a seven-year maturity period.
“The loans shall be used to partially finance the company’s capital expenditures and general corporate requirements,” the disclosure read.
The company has set an $850-million capex program for 2018, almost the same amount that was allotted for 2017. The bulk of the capital will be spent to expand the group’s mobile-data and fixed-line networks.
Globe aims to cover 95 percent of the entire Philippine population with LTE connectivity by end-2018.
The company booked P13.5 billion in core profits last year, 15 percent lower than the P16 billion it booked the year prior due to higher nonoperating expenses and depreciation charges.
Consolidated revenues jumped 6 percent to P127.9 billion in 2017, while operating expenses and subsidies grew at a similar rate to P74.58 billion.
Shares in Globe ended trading at P1,750 apiece on Tuesday, down by 0.57 percent or about P10.