MANILA -Davao-based businessman Dennis Uy’s Dito Telecommunity (DitoTel) has successfully renewed its bridge facility with two Chinese banks as several of its loans matured on Friday.
In a stock exchange disclosure, parent company Dito CME Holdings Corp. said Bank of China and China Minsheng Banking Corp. Ltd. had extended the $1.17-billion bridge facility.
“This bridge facility is to be repaid and absorbed via a $3.9-billion project finance long-term facility currently being finalized by DitoTel’s senior management, with target closing within the year,” it said.
DitoTel is in the midst of its aggressive network rollout and has bank loans with China Minsheng, as well as Bank of China’s overseas and domestic branches.
Long-term loan
These loans were originally due on Friday, May 26, after DitoTel was granted an extension last year, according to Dito CME.
Last week, Dito CME president Ernesto Alberto said they were confident that another debt extension would be granted as the group finalized the separate $3.9-billion long-term loan facility.
Concerns have been mounting over the company’s capability to stay in business as Dito CME bled P11.24 billion last year on the back of higher expenses. This is despite its revenues tripling to P7.28 billion in 2022.
Wider reach
While its parent company incurred P3 billion in net losses in the first quarter of the year, DitoTel revealed earlier this month that it was planning to offer satellite internet service as part of its plans to widen its reach in the country.
It had set its capital expenditure this year at P27 billion for network investment.
As of end-March, Dito CME saw its subscribers grow to around 16 million. INQ