Private equity giant KKR & Co will invest approximately $400 million to further develop and acquire telecom towers in the Philippines, the US Department of Commerce said.
The investment will be coursed through Pinnacle Towers, the largest independent telecom tower operator in the country. Pinnacle’s subsidiary, Frontier Towers, is backed by KKR.
In a statement, the US Department of Commerce said KKR’s investment strategy includes the development and acquisition of around 2,000 towers to enhance digital connectivity throughout the country.
“KKR continues to be highly attracted to the dynamic Philippines market and looks to do more to support national infrastructure and development priorities,” according to the announcement.
KKR acquired a stake in Pinnacle Towers for an undisclosed amount in November 2020. Pinnacle aims to build an independent telecom tower platform in the Philippines to help telecom firms meet the demand for reliable, data-rich, high-speed, and affordable connectivity.
In March last year, the KKR-backed Frontier Towers announced a deal that would see PLDT selling 1,000 telecommunications towers for more than $200 million.
In 2022, a unit of KKR acquired 3,529 telecom towers for 45 billion pesos ($814.73 million) in a sale and leaseback deal with the Philippines’ Globe Telecom Inc. The KKR unit bought another 1,012 towers for over 12.1 billion pesos from PLDT Inc.
The Philippine government has been pushing for mobile network operators to share infrastructure since 2017, saying every tower in the country serves more than 7,000 subscribers, as opposed to the ideal value of having 1,000 subscribers per tower, and the usual 2,000 subscribers per tower in countries with faster internet.
KKR’s investment forms part of the over $1 billion of recently completed or anticipated US investments in the Philippines as a result of the trade mission headed by US Secretary of Commerce Gina Raimondo from March 11 to 12.
Also announced during the mission, which was participated by 22 US companies, was the new partnership between InnovationForce and AboitizPower, the largest owner and operator of renewable energy in the country.
Solar energy firm Sol-Go is also investing in solar panel production that will promote the Philippines as a hub for high-tech manufacturing. The US firm will invest an initial half-million dollars and is planning an additional $5 million investment to reach a 100-megawatt capacity in 2025.
Ally Power, a Maryland startup, announced a more than $400 million agreement with MPower, the Philippines’ largest electric retail supplier, to collaborate and build a hydrogen and electric refueling station.
Meta, on the other hand, invested in the Pacific Light Cable Network international submarine cable system, which is supporting the Philippine government’s new National Fiber Backbone Phase 1.
