Globe Telecom, Inc. Completes 100% of its Tower Sale and Leaseback Deal with Frontier Towers, Successfully Transfers 6,628 Towers, and Raises ~P85.2 Bn to Date

Globe, a leading digital platform in the Philippines with major interests in telecommunications, financial technology, digital marketing solutions, venture capital funding, data insight services, virtual healthcare and e-mobility, announced today that it has achieved a milestone in its partnership with Frontier Tower Associates Philippines Inc. (Frontier Towers) with the closing of the last batch of towers comprising 1,037 sites for a cash consideration of P13.17 billion. These tower assets are composed of 84% ground-based towers and 16% rooftop towers. The transfer wraps up Globe’s tower sale to Frontier Towers following the closing of a total of 3,529 towers since 2022

In total, Globe has officially turned over 6,628 out of the 7,506 towers included in the Sale and Leaseback portfolio, generating approximately P85.2 billion in proceeds. In 2022, Globe transferred 2,410 towers, followed by 2,057 the succeeding year. Year-to-date transfer has now reached 2,161 towers, resulting in proceeds of around P27.8 billion. Subsequent closings will happen as and when closing conditions are met. Globe will make relevant announcements in accordance with the rules of The Philippines Stock Exchange as and when appropriate.

“Today, Globe sets a significant milestone by successfully transferring all the towers sold to Frontier Towers, bringing us closer to completing our entire landmark tower deal this year. 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, commented.

“Our strong commitment to fostering collaborative partnerships is exemplified by the full handover of towers sold to Frontier Towers. We firmly believe that our strategic partnerships with the towercos are pivotal in this competitive market landscape. Together, we strive to deliver exceptional internet connectivity across the Philippines, aiming to address the immediate connectivity needs of our countrymen and contribute to the broader objective of driving inclusive growth through digitalization.” said Ernest Cu, Globe President and Chief Executive Officer.

Patrick Tangney, Chairman and CEO of Frontier Towers, said, “We are pleased to have reached this key milestone in our strategic partnership with Globe. With this latest closing, we near the 5,000 tower mark and cement our position as the largest digital infrastructure provider in the Philippines. With our growing network of towers, we enhance further our ability to deepen digital connectivity and inclusion throughout the Philippines for Globe and the people of the Philippines. ”

Globe Telecom, Inc. is a leading digital platform in the Philippines, with major interests in telecommunications, financial technology, digital marketing solutions, venture capital funding for startups, entertainment, and virtual healthcare. The company serves the telecommunications and technology needs of consumers and businesses across an entire suite of products and services including mobile, fixed, broadband, data connectivity, internet and managed services. In 2019, Globe became a signatory to the United Nations Global Compact, committing to implement universal sustainability principles. Its principals are Ayala Corporation and Singtel, acknowledged industry leaders in the country and in the region. It is listed on the Philippine Stock Exchange under the ticker symbol GLO and had a market capitalization of US$5.2 billion as of the end of June 2024.

Frontier Towers is a subsidiary of Pinnacle Towers. Pinnacle invests in, builds and operates telecommunications infrastructure with a focus on towers and related assets. Pinnacle is an Asia-focused digital infrastructure platform with a strong focus on the rapidly growing Philippines market. Frontier Towers’ leadership team includes founders of a number of highly successful tower companies and former C-level executives from some of the world’s leading wireless operators. Pinnacle is backed by leading global investment firm KKR.