Broadband Phils gets $20-M loan

The Export Development Corp., a wholly owned crown corporation of the Canadian government, has granted a $20 million (P900 million) loan to Broadband Philippines.

The six-year term loan package was coursed through the Bank of the Philippine Islands (BPI), which acts as the security agent.

It was learned that the loan proceeds will be used primarily to accelerate the expansion of Asia’s first broadband wireless network. It will partly fund Broadband’s technology equipment and services contract with Nortel Networks, a global internet and communications leader with capabilities spanning optical, wireless, Internet, and e-business.

Broadband’s wireless network is expected to cover 600 corporate buildings in Metro Manila over the next three years, providing existing buildings not only direct Internet connectivity but also with exclusive access within a community of e-buildings, which is broadband-ready to engage in all forms of state-of-the-art technologies such as video conferencing and voice-over the Internet (VoIP).

Broadband is a joint venture between Callahan Associates, Inc., one of the world’s largest broadband operators, and Jose Perez de Venecia III. Other shareholders are the Edward P. Bass Group which is among the largest single shareholders of the Walt Disney Co., New Century Partners which is an affiliate of the George Soros group of companies, Angelo Gordon & Co. which is a New York-based investment company, and Investcorp. which is a Middle East investor consortium. – Mary Ann Reyes