China CITIC Bank provides $50 million buyer's credit for Phase 2 3G Expansion and Phase 8A NCR and South Luzon BSS Expansion Project (Linked to Project ID#63023)

On December 16, 2009, Digital Telecommunications Philippines (DMPI), Inc. — a subsidiary of Philippine Long Distance Telephone Company (PLDT) — signed a $50 million buyer’s credit agreement with China Citic Bank Corporation Ltd. (China CITIC Bank) to finance the acquisition of equipment and related materials for the Phase 2 3G Expansion and Phase 8A NCR and South Luzon BSS Expansion Project. The goal of the project is the expansion and upgrade of fixed and mobile networks of PLDT. The loan was repayable over 7 years in 14 equal semi-annual installments with its final installment due on December 17, 2017. The loan was covered by insurance from Sinosure. Disbursements (drawdowns) of the loan took place on June 25, 2010 and December 14, 2010, in the amounts of $37 million and $11 million, respectively. The undrawn $2 million was canceled. On December 9, 2011, China CITIC Bank and ING Bank signed a Transfer Certificate and Assignment of Guarantee whereby ING Bank took over the debt under the Buyers Credit Agreement. The assignment of debt was completed on December 16, 2011. This debt had been repaid in full as of June 16, 2016.

Additional details

1. PLDT, Inc., formerly known as the Philippine Long Distance Telephone Company (Filipino: Kompanya ng Teleponong Pangmalayuan ng Pilipinas), is a private telecommunications, internet, and digital service holdings company in the Philippines. It is one of the country's major telecommunications providers, along with Globe Telecom. Founded in 1928, it is the oldest and largest telecommunications company in the Philippines, in terms of assets and revenues. 2. The annual reports of PLDT, Inc. suggest that the interest rate of the $50 million buyer's credit was 6-month LIBOR plus a margin. However, the exact margin that was added to the 6-month LIBOR base rate is unknown. This issue requires further investigation. 3. This project is linked to Project ID#63023, which captures a CDB/HSBC loan to DMPI in 2010.

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