Globe Telecom Secures ₱3-Billion Loan from BPI . Globe Telecom Inc., a leading telecommunications provider in the Philippines, has entered into a term loan agreement with the Bank of the Philippine Islands (BPI), securing ₱3 billion.
This financing arrangement will support Globe ongoing capital expenditures (capex), debt refinancing, and general corporate initiatives.
Focused Investments in Network Expansion
In 2024, Globe has committed to a $1 billion capex plan aimed at fortifying its telecommunications infrastructure. To date, the company has invested ₱41 billion to enhance its network capabilities, resulting in significant infrastructure developments:
- New Cell Sites: Globe constructed 684 additional cell sites
- Upgraded Facilities: A total of 2,723 mobile sites were upgraded to improve service quality and capacity.
- 5G Expansion: Globe deployed 378 new 5G sites, raising 5G coverage to 98.51% in the National Capital Region (NCR) and 94.91% in major cities across Visayas and Mindanao.
These enhancements are part of Globe’s mission to deliver faster and more reliable internet services, particularly leveraging 5G technology, which offers superior speeds and connectivity compared to LTE.
Additional Financing Efforts in 2023
The ₱3-billion loan from BPI is part of Globe’s broader strategy to secure funding for its network expansion and modernization. Earlier in 2023, Globe finalized several financing agreements:
- ₱20 Billion Loan Facility: Secured from BDO Unibank Inc., another major Philippine financial institution.
- ₱12 Billion in Debt Financing: Raised through collaborations with BPI, China Banking Corp., and Robinsons Banking Corp.
- ₱15 Billion Borrowing: Obtained from Metropolitan Bank & Trust Co.
These credit facilities have enabled Globe to maintain a strong financial position while continuing its infrastructure investments.
Asset Monetization and Tower Sharing
To further support its funding needs, Globe has been monetizing its assets. The company successfully sold 7,506 tower assets for ₱96.4 billion, implementing a sale-and-leaseback strategy. This move aligns with the government’s tower-sharing initiative, which aims to optimize connectivity across the Philippines.
By leasing tower assets from independent providers, Globe and other operators can expand their network coverage efficiently without the need for additional physical infrastructure. This cost-effective approach promotes sustainability while enhancing nationwide connectivity.
Financial Performance Highlights
Globe reported a 6% increase in net income for the first nine months of 2023, reaching ₱20.6 billion. Total revenues grew by 2%, amounting to ₱124 billion. Mobile data remains the company’s top revenue driver, with a 9% increase, reaching ₱72.9 billion, as Filipinos increasingly rely on mobile internet for their digital needs.
Commitment to Excellence
Globe Telecom strategic investments, innovative financial approaches, and focus on expanding digital services underscore its commitment to delivering world-class connectivity to the Filipino people. The latest partnership with BPI reinforces the company efforts to meet growing demand and maintain its leadership in the telecommunications sector.
Conclusion
Globe Telecom strategic investments, innovative financing, and commitment to enhancing connectivity position it as a leader in the Philippine telecom industry, ensuring reliable services and driving growth to meet the evolving digital needs of Filipino consumers and businesses.