Metro Manila (CNN Philippines, September 21) — Third telco player DITO Telecommunity has tapped a long-term loan deal to finance its network buildup and pay off debt.
In a disclosure Thursday, its parent company DITO CME Holdings said the telco carrier signed a $3.9-billion, 15-year finance facility with a group of multinational banks.
DITO CME, led by Davao businessman Dennis A. Uy, said the agreement is considered "one of the largest long-term debt arranged and syndicated by a group of multinational banks for a Philippine corporation."
Fresh funds will go to repaying another loan facility amounting to $1.3 billion, while portions of the proceeds would also support DITO Telecommunity's network expansion.
More budget for the network infrastructure would subsequently translate to "improved quality of access and user experience," the group said.
It would also speed up DITO Telecommunity's journey in the 5G space and mobile postpaid business.
"This project finance facility represents strategic trust and confidence in the vision of the company to be a major enabler of digital services in the Philippines," DITO CME President Ernesto R. Alberto was quoted as saying in the filing.
Earlier this week, DITO Telecommunity said it passed its fourth technical audit.
Based on an independent auditor's report, the third telco player's population coverage now stands at 80.65%. Minimum average broadband speeds, meanwhile, reached 74.97 Mbps for 4G and 639.32 Mbps for 5G.
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