Guarantee on P1.1-B wi-tribe loan renewed

Liberty Telecoms Holdings Inc., the telecommunication unit of San Miguel Corp., has renewed for one year a corporate guarantee covering a P1.1-billion loan made by subsidiary wi-tribe Telecoms Inc.

The said guarantee was issued in favor of Trade and Investment Development Corp. of the Philippines, otherwise known as Philippine Export-Import Credit Agency.

Based on a disclosure to the Philippine Stock Exchange, it was Trade and Investment Development that guaranteed the P1.1-billion loan taken out by wi-tribe Telecoms from Bank of Commerce, which is also owned by San Miguel.

The unit borrowed the money to expand its 4G high-speed Internet network but at the end of 2012, Liberty Telecoms was still a money losing venture. Its revenue during the period hit P575 million, up 9 percent, but losses amounted to P1.5 billion, lower by 9 percent from year-ago level.

In the first quarter, the company posted a net loss of P301.9 million.