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Overview

China Development Bank participates in $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 Record ID#63020)

Commitments (Constant USD, 2023)$75,432,021
Commitment Year•2010Country of Activity•PhilippinesDirect Recipient Country of Incorporation•PhilippinesSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 15, 2010
Start (planned)
Sep 15, 2010
End (actual)
Apr 11, 2016
Last repayment (originally scheduled)
Mar 14, 2018

Geospatial footprint

Map overview

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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. 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 Policy Banks

  • China Development Bank (CDB)

Cofinancing agencies

Private Sector

  • HSBC (Hong Kong and Shanghai Banking Corporation)

Receiving agencies

Private Sector

  • Digital Mobile Philippines, Inc. (DMPI)
  • Philippine Long Distance Telephone Co.

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

China Development Bank participates in $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 in 2010

Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•7.5 years

Narrative

Full Description

Project narrative

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 Sinosure-backed loan was repayable over 7.5 years in 15 equal semi-annual installments with its final installment due on April 10, 2019. The agreement was drawn in 2011 for a total amount of $116.3 million. The undrawn amount of $1 million was canceled. $20 million was repaid on April 10, 2013, with the remaining balance being payable over five years in 10 semi-annual installments, with the final installment on April 10, 2018. The debt was ultimately repaid 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.

Staff comments

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. 4. 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 Record ID#63020).