Globe Telecom Inc. said it will tap the debt market next year to raise fresh funds for capital expenditures.
“That’s an option for next year. That’s for capex for next year if ever,” Globe chief financial officer Riza Maniego-Eala said when asked about the company’s planned retail bond offering.
The company, controlled by conglomerate Ayala Corp., earlier secured an approval from its board to increase the amount of the shelf registration from P20 billion to up to P40 billion.
Globe said the higher amount would enable the company to offer retail bonds within a three-year period.
Globe earlier signed a seven-year and 10-year, $155-million term loan facility with Metropolitan Bank & Trust Co. to finance capital expenditures this year.
The company also signed a 10-year, P8 billion term loan facility and an 8-year, P7-billion term loan facility with BDO Unibank Inc. and another six-year, P7-billion term loan with Development Bank of the Philippines.
Globe has raised its capex this year to $850 million from the original $750 million capex.
Globe has spent around $550 million in capital expenditures in the first six months of 2017, primarily to support the demand for data across mobile, broadband and enterprise segments.
Globe earlier reported a consolidated net income of P8.1 billion in the first six months, down 10 percent from P9 billion year-on-year.
Globe’s core net income, which excludes the impact of non-recurring charges, foreign exchange gains and mark-to-market charges, stood at P8 billion, or lower by 10 percent year-on-year.
Globe posted a new all-time high consolidated service revenues of P62.9 billion, or 5 percent higher than P59.9 billion reported in the same period of 2016.
The company’s data-related revenues accounted for 53 percent of consolidated service revenues in the first half of 2017, up from 50 percent on year.
Total data revenues, which consist of mobile data, home broadband and corporate data services, reached P33.1 billion in the first six months of the year, up 10 percent from P29.9 billion on year.
Globe’s mobile data traffic surged 85 percent to 280 petabytes at the end of the first half from 151 petabytes on year.