Globe taps P5B loan

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    Globe Telecom Inc. has borrowed P5 billion from the Land Bank of the Philippines to partly finance its capital expenditure (capex) this year.

    In a disclosure to the stock exchange, Globe said it signed the loan facility that will be used to finance its general financing and corporate requirements for capex.

    Globe spent P33.4 billion for capex as of end-September 2020, 81 percent of which was spent on data-related requirements, up 4 percent from last year’s level of close to P32 billion.

    Globe said it remains on track to meet its full year capex guidance amounting to P50 billion as it continues to focus on increasing capacity and upgrades nationwide to provide better internet experience to customers.

    The company added its balance sheet remained strong and gearing comfortably within bank covenants despite the increase in debt from P136.3 billion in 2019 to P165.9 billion in the first nine months of the year.

    Globe’s gross debt to equity is at 1.92x while gross debt to earnings before interest, tax, depreciation and amortization (EBITDA) is at 2.29x, net debt to equity ratio is at 1.54x while net debt to EBITDA is 1.84x, and debt service coverage ratio is at 3.45x. – Myla Iglesias