Globe Telecom Inc., the country's second-largest mobile phone operator, said Friday it signed a loan facility with a local bank to fund its expansion program.

Alberto de Larrazabal, head of Globe's treasury, informed the Philippine Stock Exchange that the company has obtained a P1 billion loan from Land Bank of the Philippines.

"The proceeds of the facility will be used to finance the company's capital expenditures," de Larrazabal said.

Globe, a joint venture of Ayala Corp. and Singapore Telecom, has a spending budget of $350 million to $400 million for investments in wired and wireless broadband for residential consumers, network enhancements and maintenance of its core 2G business this year.

The company earlier announced a plan to raise a total of P10 billion from the domestic bond market to support its investments.

Last year, the company posted a net income of P11.3 billion ($237.8 million) against P13.3 billion in 2007.

It ended 2008 with a wireless subscriber base of 24.7 million, up 22 percent. The wireless business accounts for nearly 90 percent of the group's service revenue.