Ayala-led Globe Telecom is raising an additional $120 million for its ongoing network modernization program, which is expected to be completed before the end of the year.
This is on top of the $200 million Globe has raised so far for the $790-million upgrade that is seen resulting in improved services for the company’s more than 30 million subscribers.
“We are currently in discussion with financial institutions. The financial markets continue to offer many alternatives and very attractive opportunities for financing,” Globe chief finance officer Alberto de Larrazabal said.
At the sidelines of the firm’s annual shareholders meeting on Tuesday, Larrazabal said interest rates remained low making the debt market more attractive to companies like Globe.
He said the decision on how to raise the money—whether through loans from foreign or local banks, or via a corporate bond offer—would be made before the end of the first semester.
Last month, Globe said it had signed a $75-million term loan facility with the Singapore branch of Japan’s Bank of Tokyo-Mitsubishi.
Of its total capital expenditure (capex) program for 2013, $450 million to $500 million has been earmarked for the company’s ongoing network modernization and transformation program and investments in fixed line, international cable facilities and IT infrastructure.
Last month, Globe said its total capex for the year would be about $600 million.