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Overview

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 Record ID#63023)

Commitments (Constant USD, 2023)$69,365,888
Commitment Year•2009Country of Activity•PhilippinesDirect Recipient Country of Incorporation•PhilippinesSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 16, 2009
Start (planned)
Dec 16, 2009
Start (actual)
Dec 9, 2011
End (actual)
Jun 16, 2016
Last repayment (originally scheduled)
Dec 31, 2015

Geospatial footprint

Map overview

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China CITIC Bank provides $50 million buyer's credit for Phase 2 3G Expansion and Phase 8A NCR and South Luzon BSS Expansion Project. More detailed locational information can be found at: https://www.openstreetmap.org/relation/1552120

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • China CITIC Bank Corporation Limited

Receiving agencies

Private Sector

  • Digital Mobile Philippines, Inc. (DMPI)

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan description

China CITIC Bank provides $50 million buyer's credit for Phase 2 3G Expansion and Phase 8A NCR and South Luzon BSS Expansion Project

Grant element•20.6478%Interest rate (t₀)•2.25125%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•7 years

Narrative

Full Description

Project narrative

On December 16, 2009, Digital Mobile Philippines, Inc. (DMPI) — 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 was the expansion and upgrade of fixed and mobile networks of PLDT. The Sinosure-backed loan carried an interest rate of 6-month LIBOR plus a 1.8% margin and it was repayable over 7 years in 14 equal semi-annual installments with its final installment due on December 17, 2017. 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 buyer's credit agreement. The assignment of debt was completed on December 16, 2011. $34 million, $34 million, and $41 million of principal remained outstanding as of March 31, 2013, December 31, 2012 and January 1, 2012, respectively. The loan had been repaid in full as of June 16, 2016.

Staff comments

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. 3. AidData has estimated the loan's all-in interest rate -- at the time it was issued -- by adding 1.8% to average 6-month LIBOR in December 2009 (0.45288%). 4. This project is linked to Record ID#63023, which captures a CDB/HSBC loan to DMPI in 2010.