PLDT gets $8.8-M loan from Canadian firm

Telecommunications giant Philippine Long Distance Telephone Co. (PLDT) has secured a new $8.8-million long-term loan facility from Export Development Canada (EDC), a Canadian financial institution that provides trade finance and risk management services to Canadian exporters and investors.

The facility would be used to finance in part telecommunications equipment and related services provided by Nortel Networks for the expansion of PLDT’s next generation Domestic Fiber Optical Network (DFON).

"We welcome the continuing support extended to us by EDC in our financing requirements, in particular for this project. This network expansion is yet another step in our vision of creating a fully-digitized, internationally-connected national network capable of providing a broad range of fast, reliable and competitive broadband, data and IP services," PLDT president and chief executive officer Manuel V. Pangilinan.

EDC executive vice-president Eric Siegel said "EDC is pleased to have concluded this transaction with PLDT and looks forward to continuing to provide competitive direct financing in support of Canadian exporters pursuing opportunities in the Philippines and Asia."

EDC provides trade finance and risk management services to Canadian exporters and investors in up to 200 markets. Founded in 1944, EDC is a Crown corporation that operates as a commercial financial institution.

PLDT recently announced that it has signed a contract with Nortel Networks for this project which would enhance the capabilities of the DFON’s existing OPTera Long Haul 1600, as well as deploy an OPTera Connect DX optical switch to support an increase in network capacity, services provisioning and reliability.

George Lim, senior vice-president and head of PLDT’s Network Development and Provisioning Group, said the DFON expansion would allow them to address customer-driven bandwidth requirements for additional services such as DSL/ATM connectivity and wholesale bandwidth and to create a scalable platform to meet the increasing demand for bandwith.

PLDT is the leading telecommunications provider in the Philippines. Through its three principal business groups – fixed line, wireless and information and communications technology – it offers a wide range of telecommunications services across the Philippines’ most extensive fiber optic backbone and fixed line, wireless, cable and satellite networks. Listed on the Philippine Stock Exchange and its American depositary shares are listed on the New York Stock Exchange and the Pacific Exchange, PLDT has one of the largest market capitalizations among Philippine listed companies.