Metropolitan Bank & Trust Co., the country’s second-largest bank, is extending a P5-billion loan to Smart Communications Inc. to partially finance the company’s capital expenditures and refinance loans.
Metrobank said in a statement Monday it signed a 10-year loan facility agreement with Smart, the country’s leading wireless services provider.
“According to Smart, the 10-year loan facility is meant to partially finance Smart’s capital expenditures for service improvements and expansion programs, as well as to refinance its existing loan obligations,” Metrobank said.
“With this partnership, Metrobank and Smart are one in the commitment to provide access to a wide range of wireless and digital services to Filipino mobile subscribers,” the bank said.
Metrobank also sealed a P5-billion 10-year loan agreement with Smart parent Philippine Long Distance Telephone Co. the loans aimed to partially finance PLDT’s capital expenditures for service improvements and expansion programs, as well as refinance its existing loan obligations.
PLDT said it formed a new company with an initial investment of $50 million this year to acquire Internet-related firms in other countries.
The country’s largest telecom company created PLDT Capital, which aims to connect the PLDT Group of companies with leading firms in Silicon Valley and around the world.
PLDT Capital’s investment budget of up to $50 million this year will support PLDT business units, which include Smart, ePLDT, Digital5 and Voyager to expand their portfolio of digital services in the Philippines, the rest of Southeast Asia and other developing economies of the world.
“PLDT Capital serves as an important pillar to sustain our Digital Pivot,” PLDT chairman Manuel Pangilinan said.
PLDT earlier raised its capital expenditures to P43 billion this year from an earlier budget of P39 billion to invest more in digital platform and expand its mobile and fixed-line networks.
Metrobank in October also announced the signing of a P7.5-billion loan agreement with Therma Visayas Inc., a joint-venture between Aboitiz Power Corp. and Vivant Corp. to fund the construction of a new thermal power plant in Toledo City in Cebu province.
Metrobank was the biggest lender among the 10 banks that were part of the deal, contributing to P7.5 billion to the P31.97-billion term loan facility. First Metro Investment Corp., Metrobank’s investment banking arm, was also the transaction’s lead arranger and sole bookrunner.
The amount pooled together with other lender-banks will be used to fund the construction of the 300-megawatt coal-fired power plant in Barangay Bato, Toledo City, some 49 km west of Cebu City.