Metrobank lends P7 B to Globe for capex

MANILA, Philippines - Metropolitan Bank & Trust Co. (Metrobank) has extended P7 billion worth of loans to Ayala-led Globe Telecom Inc. to finance its capital expenditures.

Metrobank announced yesterday it has inked a 10-year loan facility worth P5 billion and another $45 million seven-year facility with Globe.

“These respective 10-year and seven-year term loan facilities are meant to finance Globe’s capital expenditures for additional network capacity, which would handle the growing data traffic from Globe’s customers’ shift to a digital lifestyle,” Metrobank said.

Metrobank president Fabian Dee and Metrobank executive vice president Mary Mylene Caparas as well as Globe president Ernest Cu and Globe chief financial officer Alberto de Larrazabal signed the loan agreements.

Globe is spending $800 million for its capital expenditures for 2016 compared to $850 million this year.

The investments of the telecommunications provider covers domestic and international transmission facilities and is focused on data-related projects particularly its broadband network, wireless data, and long-term evolution (LTE) expansion.

Metrobank continued to pursue its coverage expansion strategy to improve customer accessibility with a network of 939 branches and 2,183 ATMs nationwide as of end September.

 

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