Globe Telecom Inc., the Philippines' second largest telecoms firm, plans to raise between $100 million and $150 million through a debt issue or bank loan to fund its 2011 capital outlay, an official said Tuesday.

''We're looking at $100-$150 million borrowings in the second half to finance the capex of 2011,'' Alberto de Larrazabal, chief financial officer at Globe, told reporters.

''Interest rates may climb so we are taking a look already and will probably lock it in the second half.''
Globe, owned by Singapore Telecommunications Ltd. and Philippine conglomerate Ayala Corp., has not determined its spending budget for next year.

This year the company has funded its $500 million capex, half of which would be invested in its broadband business, officials said.

The company said in January that it expects its broadband subscriber base to double in each of the next few years, but sees 2010 net income growing slower than in 2009 when profit rose 11 percent.

''Competition in the telecommunications sector should be expected to remain intense with continued pressure on margins and profitability as more unlimited offers and cut-throat pricing from competitors will likely temper our 2010 growth,'' Ernest Cu, President and CEO of Globe, told shareholders at an annual meeting Tuesday.

But Cu said increased spending related to the May 10 national elections and ''optimism that comes with the imminent new government will likely boost the economy,'' adding strong remittances from Filipinos working overseas, which fuel domestic spending, should also support earnings. (Reuters)