Mizuho Bank loans US$40 million to Philippines’ second largest telecom firm

Loan will restructure debt profile of Globe Telecom, Inc.

Globe CFO Alberto de Larrazabal said Globe has signed a three-year loan term facility with Mizuho Bank Ltd. The proceeds of the loan facility will be used to prepay and refinance Globe’s debt as the firm takes advantage of the favorable environment in the debt market.

De Larrazabal also said the loan will help Globe generate savings and finance capital expenditures, including an ongoing network modernization and transformation program.

Globe is a joint venture between conglomerate Ayala Corporation and Singapore Telecommunications Ltd. It completed the first phase of its US$700 million network modernization and transformation program last March and has started its US$90 million IT upgrade.