Globe Telecom signed a sale and leaseback agreement with Unity Digital Infrastructure (UDI) for 447 towers, raising PHP5.4 billion (US$96.8 million) for debt and capex payments, and UDI committed to constructing more towers.
Unity Digital Infrastructure was formed as a partnership between Aboitz InfraCapital and Partners Group. As part of the deal, UDI will build over 200 towers in the southern regions of the Philippines, namely Visayas and Mindanao.
The assets consist of 84% ground-based towers and 16% rooftop towers located in Luzon and will be leaseback for a period of 15 years. The first closure of towers will occur in Q3 this year, with subsequent closing to occur when certain conditions are met. This deal brings the total amount of Globe’s tower signed to be transferred to 7,506.
Globe Telecom CEO Ernest Cu said the deal will “enable us to streamline our operations and promote technology as a tool to upgrade the standard of living across the nations, especially in Visayas and Mindanao.”
The company also closed the sale of 160 towers to MIESCOR Infrastructure Development Corporation (MIDC) netting the Philippines-based operator PHP1.9 billion (US$34 million).
In a separate statement, Globe detailed the tower assets comprising 127 ground-based towers and 37 rooftop towers. With this latest closure, 1,020 towers out of 2,180 towers have been transferred in total to MIDC.
In total, Globe has transferred 44% of towers sold, equating to 3,280 towers out of 7,506. Subsequent closings will occur when closing conditions are met.
Globe Telecom CFO Rizza Maniego-Eala said: “I am delighted that our tower initiatives continue to provide enormous support in our corporate financing and in the acceleration of our network expansion.”.