IPBC follows suit

Richard Li''s internet joint venture with Telstra has agreed to pay more for its finance to keep its banking relationships intact.

IP Backbone Company IPBC - the internet protocol joint venture between PCCW and Telstra - has agreed to pay more to its bankers for its fully underwritten $1.5 billion loan signed in December. The move comes just a couple of days after another PCCW subsidiary - HKTC - agreed to pay more for its fully underwritten loan, and as borrowing costs for global telecom companies continue to rise due to bank overexposure to telecom debt.

The change in margin payments in expected to cost IPBC $6.1 million a year. The changes to the margins of the three tranche loans are outlined below

TrancheAmountTenorIncrease in margin
A$300m3From 50bp...

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