
MANILA, Philippines – Ayala-led Globe Telecom Inc. is set to borrow another P7 billion within the next two months to bankroll its capital expenditures, thus accelerating its network build-up program to just 18 months instead of three years. Albert de Larrazabal, chief finance officer of Globe, said in an interview after the company’s Annual Stockholders’ Meeting that Globe would complete the borrowing program next month after closing a seven-year loan worth P7 billion obtained from the Philippine National Bank (PNB) last December. “We are now getting into the market. We are getting proposals but we haven’t awarded yet. It is another P7 billion and we’ve asked people to give us all offers, but the one that is most compelling today is just a bilateral club deal,” he said. According to De Larrazabal, a total of 13 banks have offered to raise the P7 billion required by Globe. “Everybody has so much money and they are trying to move it,” he added. De Larrazabal said the planned borrowing would be denominated in peso and would mature within a period of seven to 10 years. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 He explained that Globe prefers local borrowings with the ample liquidity in the system, as well as the absence of foreign exchange risks compared to foreign borrowings. For this year, Globe has earmarked $850 million for its capital expenditures including the $200 million carry over from last year’s budget. “The total capex this year is about $850 million, Read More …