Telecommunications giant Globe Telecom Inc. is borrowing ₱10 billion from state-run Land Bank of the Philippines (Landbank) to bolster funding for its network expansion initiatives.

In a July 15 disclosure, Globe said it signed a loan facility with Landbank to partially fund its capital expenditures (capex).

The loan will also support debt refinancing and other general corporate requirements.

Globe is maintaining its capex guidance of below $1 billion for the year, in line with its efforts to pursue a disciplined capital investment strategy.

The company spent ₱12.7 billion on capex in the first quarter of the year, up by more than half from ₱8.46 billion in the same period last year.

More than 91 percent of its capex was directed toward data-related upgrades as Globe zeroes in on expanding its digital capacity to meet evolving customer needs.

“Capex accounted for 30 percent of service revenues during the period, supporting Globe’s objective of strengthening its network while sustaining a healthy free cash flow profile and prudent financial position,” the company said.

As of March, Globe had rolled out 408 new 5G sites, bringing its coverage to more than 98 percent of Metro Manila and key cities in Visayas and Mindanao.

Globe is taking a more measured approach to spending this year, especially after its net income declined amid a challenging macroeconomic environment.

The company reported that its earnings dropped by 20 percent to ₱5.55 billion from January to March, compared to ₱6.98 billion in the same period last year.

Revenue increased by four percent to ₱45.71 billion during the three-month period, driven largely by strong demand for its mobile data services.

In particular, mobile data accounted for 89 percent of its total mobile revenue, up from 85 percent a year ago. More than 39 million of Globe’s customers actively use these services.