KKR-backed Frontier Towers has acquired PHp45bn (€787m) worth of mobile telecommunications towers in the Philippines from Globe Telecom, a deal which represents the country’s largest sale and leaseback transaction.

Frontier Tower, owned by KKR portfolio company Pinnacle, has agreed to buy more than 3,500 cell towers which Globe will lease back for an initial period of 15 years. 

Patrick Tangney, chairman and CEO of Frontier Towers, said: “We are honoured by the trust Globe has shown Frontier in forming a long-term cellular tower strategic partnership.”

He said Frontier looked forward to continued collaboration with Globe and the country’s mobile network operators to advance the growth of digital infrastructure locally.

Rizza Maniego-Eala, Globe’s chief finance officer, said: “This initiative marks our continued commitment to optimise our capital raising efforts and to further strengthen the balance sheet as we seek to capitalise on opportunities in the telecommunications sector and complementary services.”

Ernest Cu, Globe president and CEO, said: “We also believe that, through these monetisation efforts, Globe will be able to improve overall operational efficiency, allowing us to serve our customers better and supporting our goal of enabling the digital lives of the Filipinos.”

To read the latest edition of the latest IPE Real Assets magazine click here.