The information and communications technology (ICT) sector holding company of the Udenna Group, DITO CME Holdings Corp (“DITO CME” or the “Company”), announces the signing of a USD 3.9 billion 15-year long-term project finance facility by its subsidiary, DITO Telecommunity Corp (“DITO Tel”).
DITO signed a USD 3.9 billion loan facility
The facility would be one of the largest long-term loan facilities created and syndicated by an association of global banks for a Philippine firm.
The revenues will be used to pay off short-term bridging credit facilities totaling USD 1.3 billion, with the balance utilized to pay contractors and sustain DITO Tel’s ongoing network deployment. This will increase access and user experience while also expediting the adoption of its FWA5G and mobile postpaid product offerings.
A significant step in ensuring future funding operations in both debt and equity is the signing of this long-term project finance arrangement. This long-term debt gives DITO Tel more assurance that its business plan goals will be met as soon as feasible when combined with the recent equity investments at the DITO CME level.
“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 commented.
In March 2021, DITO Telecommunity started operating business, taking against Globe Telecom and Smart Communications. According to The Manila Times, DITO plans to achieve financial parity in 2025 and earn a profit in 2028.