Loan from Banco de Oro Unibank Inc

Globe Telecom on Friday said it has secured a fresh P5-billion loan from Banco de Oro Unibank Inc. to refinance existing debts and fund capital expenditures next year.

In a statement, the Ayala-led telco said it signed a seven-year, P5-billion floating-rate term loan facility with BDO Unibank, its third loan facility this year.

“We intend to use the BDO facility to fund our capital expenditure requirements for next year, including the initial portion of our mobile network modernization program, which aims to significantly improve network quality and customer experience, increase voice and data capacity, drive down costs, and prepare the network to meet the future needs of our customers,” Alberto M. de Larrazabal, chief financial officer of Globe, said.

Last month, Globe secured a seven-year, P5-billion fixed-rate term loan facility with Rizal Commercial Banking Corp. and another seven-year, P7-billion loan BDO Unibank last February.

As of end-September, Globe had a debt-to-equity ratio of 1.04.

Globe recently announced it would invest US$ 790 million to undertake a massive network modernization and IT transformation program over the next five years to boost capacity, improve network quality and meet the growing demand for bandwidth-heavy services such as broadband and mobile data.

Of this amount, US$ 640 million will be spent in 2012 and 2013.

Globe earlier reported a net income of P2.49 billion, up 4 percent compared to the P2.39 billion in the same period last year.

In the first nine months, earnings rose 7 percent to P7.99 billion from last year’s P7.45 billion.

Excluding foreign exchange and mark-to-market gains and losses as well as non-recurring items, Globe’s core net income went up by 15 percent to P8.18 billion in the first nine months from P7.13 billion last year.

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