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April 12, 2024

Security Bank co-finances and jointly arranges with ADB for the construction of 800 telecommunication towers under iSON

Security Bank and its investment banking arm, SB Capital Investment Corporation, in partnership with Asian Development Bank (ADB), co-finance iSON Tower Limited Inc.’s telco project. From left to right: Cathy Marsh, Deputy Director General (PSOD), Asian Development Bank; Bhargav Dasgupta, Vice President – Market Solutions, Asian Development Bank; Vivek Gupta, Founder and Chairman, iSON Tower Limited Inc.; Sanjiv Vohra, President and CEO, Security Bank; and Virgilio O. Chua, President and CEO, SB Capital Investment Corporation.

Security Bank Corporation (PSE:SECB) and its investment banking arm, SB Capital Investment Corporation, in collaboration with Asian Development Bank (ADB), announces its role as a co-financer and joint lead arranger, respectively, for the Nationwide Digital Connectivity Project of iSON Tower Limited Inc. (iSON Tower). The project aims to construct up to 800 telecommunication towers across the Philippines, significantly enhancing the country’s digital infrastructure.

The PHP4.8 billion term loan facility will fund the construction of up to 800 built-to-suit towers for use by Globe Telecom Inc. and Smart Communications Inc., the country’s major network operators.

iSON Tower is one of around 20 Department of Information and Communications Technology (DICT)-licensed independent tower companies in the Philippines.

“The project is intended to add 800 much-needed telco towers, which will contribute to the Department of Information and Communications Technology’s 2025 target of 60,000,” said Sanjiv Vohra, President and CEO of Security Bank.

SB Capital played a pivotal role in the milestone project. As joint lead arranger, SB Capital worked alongside ADB to originate the fundraising transaction. SB Capital was also responsible for gathering and vetting financial and technical information necessary for due diligence.

“This transaction marks the beginning of exciting prospects for ISON. With the support from ADB, SB Capital, and Security Bank, we aim to enhance connectivity and drive progress in the Philippine telecommunications sector,” said Virgilio Chua, SB Capital President and CEO.

Security Bank Trust and Management Asset Group (TAMG), mandated as the transaction’s Onshore Security Agent, holds the security in trust for the lenders.

This collaboration represents a significant milestone in advancing the country’s digital connectivity. The additional 800 towers will play a crucial role in achieving inclusive socio-economic growth, bridging the gap in internet access, and preparing for the demands of the digital economy.

“Supporting the development of the country’s communications and technology infrastructure is closely aligned with Security Bank’s mission to enrich lives, empower businesses, and build communities sustainably,” said Vohra. “We are both humbled and proud to support the Philippines’ digital transformation and improve connectivity in underserved areas.”

“We did not confine ourselves to a particular region and instead chose to develop the telecom infrastructure even in the remotest islands and strengthen the nation’s connectivity. We have brought our global expertise and investments to Philippines and are confident that soon the digital infrastructure of the country would set new standards in 5G technology and beyond,” said Vivek Gupta, Founder and Chairman of iSON Tower.

For more information about Security Bank and SB Capital Investment Corporation, visit www.securitybank.com.

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