Globe gets P85-B tower windfall

Ayala-led Globe Telecommunications Inc. is about to receive a much-needed financial boost following the completion of its P85.2-billion tower sale and leaseback deal with Frontier Tower Associates Philippines Inc.

In a stock exchange report on Thursday, Globe said it closed the last batch of towers composed of 1,037 sites worth P13.17 billion this week. Of these, 84 percent were ground-based towers and 16 percent were rooftop towers.

Of the 7,506 towers in the Sale and Leaseback portfolio, the telecommunications company had transferred 6,628 towers to Frontier Tower.

The transaction has resulted in approximately P85.2 billion in proceeds for Globe.

Sustainable expansion

“This transaction provides us with a higher level of financial flexibility to manage our leverage ratios and effectively address the evolving consumer demands while ensuring sustainable network expansion,” Globe chief finance officer Rizza Maniego-Eala said in the report.

For Patrick Tangney, Chairman and CEO of Frontier Towers, the deal with Globe helps position the company as a leading digital infrastructure provider in the country.

“With our growing network of towers, we further enhance our ability to deepen digital connectivity and inclusion throughout the Philippines for Globe and the people of the Philippines,” Tangney said.

Globe has been selling passive tower portfolios not just to Frontier Towers but also to Unity Digital Infrastructure, Phil-Tower Consortium Inc. and MIESCOR Infrastructure Development Corp. to raise funds and help reduce debts.