The six-year loan, packaged by the Bank of the Philippine Islands, complements the recent capital infusion into Broadband by Next Century Partners (NCP) an affiliate concern of billionaire George Soros which pumped in P3.2 billion or more than $60 million into local Internet firm Broadband Philippines, acquiring an 18-percent stake in the company.
Broadband president Jose P. de Venecia III said the loan proceeds will be used to speed up the expansion of the company which is establishing itself as the country’s first broadband wireless network.
He said the EDCC loan will bankroll Broadband’s acquisition of technology equipment and services contract with Nortel Networks, a global Internet and communications leader with capabilities in optical, wireless, Internet and e-business.
De Venecia said his company is aiming to cover 600 corporate buildings in Metro Manila over the next three years, providing existing buildings not only with direct Internet connectivity, but also with exclusive access within a community of e-buildings. This will enable clients to engage in all forms of state-of-the-art technologies, including video conferencing and voice for the Internet.
"We already have a number of big corporate clients and we aim to increase this by at least a quarter in the next few months," De Venecia said.
Among the roster of clients Broadband has wired are Tower I, Tektite Bldg., both of which houses the Philippine Stock Exchange; Enterprise Bldg., Citibank NA Paseo, Taipan Place in Ortigas, Ayala-FGU Bldg. along Ayala Ave., 6750 and the Rufino Tower.
Poised to be the biggest broadband wireless network, De Venecia said the entry of Soros’ Group is a big boost to the company. The George Soros Group, along with other European and US-based investors, namely, Edward Bass Group a major have acquired a combined 48-percent stake in Broadband.
"The deal with the Soros Group has been worked out in the last two-and-a-half months," De Venecia said, adding that Soros’ Group decision to infuse capital into Broadband was helped by the "good cache" of investors already committed to the company even before the billionaire’s company was asked to be a strategic partner. – Rocel Felix