Following months of attempts to secure funding for its expansion plans, DITO Telecommunity has finally renewed its bridge loan with the China Minsheng Banking Corp. and Bank of China.
DITO’s parent company, DITO CME Holdings Corp., claimed that the $1.175 billion bridge facility was outstretched, per word to the Philippine Stock Exchange (PSE).
According to the disclosure, the loan is intended to be repaid and taken in through a project finance long-term facility worth $3.9 billion, which is in the process of being settled by DITO’s senior executives.
Having existing loans with the overseas branches of the aforementioned banks, the step comes in light of the company’s debts reaching maturity on Friday.
With plans to capitalize on essential infrastructure, among others, DITO’s plans on expanding its network is capital intensive.
In a discussion with the Philippine Daily Inquirer on May 16, DITO CME President told that the company has confidence in securing the $3.9 billion long-term loan facility.
Originally poised at selling rights to part ownership of the company through stocks, DITO delayed such plans on January 2022, citing “less-than-ideal market conditions” as the cause.
In addition to the loans, the company said that it will also roll out cost-cutting measures, following accrued losses from previous years, in 2023.