Buyers of PLDT telecom towers obtain loans from BPI
The Bank of the Philippine Islands (BPI) announced that it had recently signed two term loan agreements to finance the landmark sale of PLDT Inc.’s (PLDT) telecommunications towers to two major international tower operators.
ComWorks Infratech Corp. (CIC) and ISOC edotco Towers, Inc. (ISOC edotco), were the winning bidders in the sale by PLDT through its subsidiaries, Smart Communications Inc. (Smart) and Digitel Mobile Philippines Inc. (Digitel), of a total of 5,907 telecommunications towers for a total amount of 77 billion pesos.
For both loan facilities, BPI Capital Corp. acted as mandated lead arranger, while BPI Asset Management and Trust Corp. acted as a facility officer and security officer.
Down, CIC, a subsidiary of EdgePoint Holdco Pte. ltd. (EdgePoint) – obtained a portfolio of 2,934 towers located in Luzon; while ISOC edotco, a subsidiary of edotco Investments (Labuan) Ltd. (edotco Investments) owned by edotco Group Sdn Bhd (edotco Group), was awarded a portfolio of 2,973 towers in Luzon, Visayas and Mindanao.
EdgePoint and edotco Group are international groups with experience operating telecom towers in Asia.
“We are delighted to enable this pioneering agreement which will help accelerate the growth of the telecommunications industry. More than ever, connectivity plays a crucial role and BPI is committed to supporting these types of innovative and strategic acquisitions that will significantly contribute to the betterment of the Philippines,” said BPI President and CEO, Jose Teodoro K. Limcaoco.
Under the terms of the credit agreements, BPI will provide financing to the two tower companies involved in the landmark P77 billion sale and leaseback agreement.
The deal represents the largest cross-border technology, media and telecommunications acquisition in the Philippines and the largest acquisition of assets in the country by international investors.
Adlan Tajudin, CEO of edotco group, said, “The Philippines is a highly valued market for edotco group, and we value partnering with BPI to secure tailored structured finance that allows us to future-proof the infrastructure of the economy. digitalization of the country with a cutting-edge communication network to benefit all Filipinos.
Suresh Sidhu, CEO of EdgePoint, said, “In our commitment to building a world-class operation to expand next-generation connectivity solutions and bridge the digital divide in the Philippines, we are delighted to be able to partner with BPI, who has a 170 year history of providing excellent and reliable financial services in the Philippines and Southeast Asia.
Picture credits: Nonie Reyes