Globe, a digital platform in the Philippines, has obtained approval for its milestone initiative to sell more than 7,000 towers, in what is to be the largest tower sale-and-leaseback deal in the country.
The assets consist of 79 percent ground-based towers and 21 percent rooftop towers, and have been grouped into three unique distinct portfolios assigned to three different tower companies.
Globe expects to raise a significant amount of capital over the next few quarters from executing this transaction. Of the total proceeds, about 75 percent will be used to fund capital expenditures and the remaining 25 percent will be earmarked to cover the company’s 2023 debt-servicing requirements.
The second portfolio consisting of 3,529 towers will be sold to Frontier Tower Associates Philippines Inc. for PHP 45 billion ($811 million), and leased back over an initial period of 15 years.
The first close for this portfolio is expected to happen in late third quarter,
