MANILA, Philippines--GLOBE TELECOM INC. MAY borrow another P3 billion from local banks to supplement the company?s budget requirements for the year.

But the company said it was unlikely to raise money by selling debt paper to retail investors this year as rising interest rates make bond floats more expensive than regular bank loans.

?Last year, we did it [bond float] because we wanted to diversify our debt profile,? said Alberto M. de Larrazabal, head of Globe?s treasury unit.

In 2009, Globe was among many companies that chose to raise funds by floating bonds amid the downward pressure of the global financial crisis on share prices.

Globe was able to raise P5 billion from a domestic bond float in the first half last year.

The official also said that last year, floating bonds were a better option for most companies given the low interest rates at the time.

De Larrazabal said most banks were also charging high interest rates then due to the uncertainties in the world?s financial markets. Local investors, however, were more than willing to scoop up corporate debt paper for slightly lower yields.

?Last year, bank loans became very expensive, but now prices are down,? he said.

?We might have to borrow a little bit more this year ... probably in the first quarter. Maybe between P2 billion and P3 billion,? he said.

The fresh funds will be on top of the P3 billion that Globe had borrowed late last year to prepare for this years expenses.

Last week, Globe said it planned to spend about $500 million this year. This was slightly lower than last year?s capital expenditure of $516 million. Despite the slight budget cut, the company plans to increase investments to develop its broadband business, which has been tagged as the industry? growth areas.

With 23 million mobile and 715,000 broadband Internet subscribers, Globe is the country?s second-biggest telecommunications firm.

In the lead is Philippine Long Distance Telephone Co., whose mobile subsidiary Smart Communications Inc. has more than 40 million mobile phone subscribers and a million broadband Internet users.