Globe Telecom Inc. has sealed term loan facilities amounting to ₱20 billion to address its budget needs and boost capital spending this year.
In a disclosure to the Philippine Stock Exchange (PSE), the Ayala-led telecommunications giant said it borrowed ₱10 billion each from Sy-led BDO Unibank Inc. and Ty-led Metropolitan Bank & Trust Co. (Metrobank).
Globe said the loans will be used to finance its capital expenditures (capex), debt refinancing, and other general corporate requirements.
This year, the company has set its capex guidance under $1 billion, with the objective of achieving positive free cash flow and optimizing capital utilization.
This is a decrease from the 2024 capex of ₱56.2 billion, which was a 20 percent decrease from the previous year.
Notably, 90 percent of the capex was directed towards investments in data-related projects.
The telco firm said this move aims to ensure that its network infrastructure continues to meet the growing demand for digital solutions and connectivity services.
Its prudent capital allocation strategy was also reflected in the decline of the capex-to-revenue ratio, from 44 percent in 2023 to 34 percent in 2024.
Globe built 1,212 cell sites and upgraded 4,613 existing mobile sites with LTE technology across the 12-month period.
The company also deployed 67,456 fiber-to-the-home (FTTH) lines to strengthen its fiber network.
This rollout, in particular, focused on the optimization of existing fiber resources to boost utilization while ensuring investment efficiency.
“Globe's ongoing investment in network infrastructure reflects its dedication to providing equal access to the digital economy for all communities in the Philippines,” it said.
In 2024, Globe reached a record gross service revenue of ₱165 billion, a steady two percent growth from the previous year.
The mobile and corporate data businesses were the primary growth drivers, contributing a combined 83 percent to the total revenue.