China Development Bank provides $117.3 million term loan for Phase 8A Expansion and 8B Core and Intelligent Network Expansion, Phase 3 3G Expansion, and Phase 8B NCR and SLZ BSS Expansion Project (Linked to Project ID#63020)

On September 15, 2010, Digital Mobile Philippines, Inc. (DMPI) — a subsidiary of Philippine Long Distance Telephone Company (PLDT) — signed a $117.3 million term loan facility agreement with China Development Bank (CDB) and HSBC. The loan was repayable over 7.5 years in 15 equal semi-annual installments with its final installment due on April 10, 2019. Sinosure provided insurance. The agreement was drawn in 2011 for a total amount of US$116.3 million. The undrawn amount of US$1 million was canceled. $20 million was repaid on April 10th, 2013, with the remaining balance being payable over five years in 10 semi-annual installments, with the final installment on April 10th, 2018. According to p. F-101 of "PHI / Philippine Long Distance Telephone Co. 6-K/A (Current Report of Foreign Issuer) - March 14, 2018", the debt had been paid in full on April 11, 2016. The purpose of the project was to finance the purchase of equipment and related materials for (1) the Phase 8A Expansion and 8B Core and Intelligent Network (IN) Expansion, (2) Phase 3 3G Expansion, and (3) Phase 8B NCR and SLZ BSS Expansion. The goal of the project is the expansion and upgrade of fixed and mobile networks of PLDT, Philippine Long Distance Telephone Co., for its Phase 7 Intelligent Network Expansion Project. In 2009, China CITIC Bank provided a $50 million buyer's credit loan to DMPI for Phase 2 3G Expansion and Phase 8A NCR and South Luzon BSS Expansion Project (see Project ID#63020).

Additional details

1. CDB's individual contribution to this $117.3 million syndicated loan is unknown. For the time being, AidData assumes that each bank contributed equal amounts ($58.65 million). 2. 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. The annual reports of PLDT, Inc. suggest that the interest rate of the $117.3 million term loan was 6-month LIBOR plus a margin. However, the exact margin that was added to the 6-month LIBOR base rate is unknown.

Number of official sources

6

Number of total sources

7