Broadband Phils to pay $6-M debt before yearend

Broadband Philippines is set to pay its $6 million debt with the Canadian Export Development Corp. (CEDC) before the end of this year, leaving it debt-free next year when the economy is still expected to encounter difficulties.

This was revealed yesterday by Jose Perez de Venecia III, Broadband chairman and chief executive.

He said Broadband will pay off the $6 million drawdown it availed from a $20-million seven-year facility it had originally secured from CEDC.

Perez, and Benjamin Sevilla, Broadband executive vice president for strategic planning, project that the first half of next year would still pose challenges, for the company.

Accordingly, Broadband prefers to streamline its finances and operations, leaving it more efficient and flexible when the economy finally turns, around, he said.

De Venecia said that this year, Broadband had to refocus some of its activities following the overall global economic slump.

For instance, he said, from its initial target of covering 150 buildings with its bandwith facilities, Broadband limited coverage to just 100 buildings.

Broadband’s capital expenditures, were also reduced to $14.5 million from its target of $16.5 million.

Broadband, thus, expects to break even by the first quarter of 2003 instead of its original projection of December 2002.

Broadband has a paid-up capital of P1.1 billion. Its investors include Next Century Partners, Ltd. (NCP), in which the Soros Fund Management has a 29 percent stake.

Broadband Philippines is the first wireless broadband provider. – Marianne Go