Globe Telecom transferred 750 towers to Frontier Towers Associates Philippines for PHP9.5 billion (US$170m), which will provide room to cover debts in 2023 in the face of rising interest rates.
In a statement to the Philippines stock exchange, Globe detailed the towers composed of 81% ground-based towers and 19% rooftop towers. This latest close brings the total transferred to Frontier Towers to 1,550 out of the agreed 3,529, of which Frontier Towers will pay PHP45 billion in total.
Globe and its rivals have been in a race to sell passive tower assets to cover debts from coverage expansions.
With this latest deal, Globe transferred 2,251 towers out of 7,059 raking a total of PHP28 billion. The first transfer was in September to Frontier Towers of 800 towers for PHP10 billion and 701 more towers to MIESCOR Infrastructure Development Corporation for PHP8.4 billion in October.
The operator said it will sell off three more groups of towers within 2023.
“We are happy that we have successfully completed 32% of this record-breaking initiative giving us much leeway to cover for our 2023 debt servicing requirements amidst the backdrop of rising interest rates. This tower deal will also help us meet the changing consumer demand while ensuring that our network expansion is done in a sustainable and responsible way,” said Globe CFO Rizza Maniego-Eala.
“We are pleased with the remarkable progress of our tower deal with Frontier Towers. We believe that our strategic partnership with the tower companies is critical in this very competitive market and in providing the best internet connectivity in the Philippines that is comparable to the rest of the world,” added Globe President and CEO Ernest Cu.