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Chinese loans to Philippines private sector stay resilient amid row
AidData says Chinese loans to the Philippines total nearly US$9 billion to the private sector over 20 years, including a US$3.9 billion syndicated loan to Dito Telecommunity in 2023.
New findings on Chinese financing in the Philippines are challenging the idea that Beijing curtailed funding under President Ferdinand Marcos Jr. because of worsening tensions in the South China Sea, according to SCMP Economy.
SCMP Economy reports that AidData found Chinese capital continued to support Filipino businesses in recent years, including nearly US$9 billion in Chinese loans to the Philippines private sector over two decades since 2000. AidData also highlighted a US$300 million refinancing loan to energy conglomerate San Miguel Global Power for general operations.
The findings suggest geopolitical friction has not been a major factor in how Chinese firms assess funding and business opportunities in the Philippines, SCMP Economy said. AidData pointed to a US$3.9 billion syndicated loan to telecommunications company Dito Telecommunity in 2023, described as the largest ever China backed private sector loan to the Philippines.
SCMP Economy adds that the Dito loan helped finance a multibillion-dollar contract to manage its 4G and 5G networks nationwide, and AidData said the funds were used to refinance earlier bridging loans Dito received from Chinese financial institutions.