The Asian Infrastructure Investment Bank (AIIB) has signed a $300 million senior unsecured corporate loan with International Container Terminal Services Inc. (ICTSI) to expand capacity and fund electric equipment across three ports.
This agreement represents AIIB’s first non-sovereign-backed transaction in the Philippines. The capital will fund technology upgrades, expand terminal capacities, and purchase electric equipment to reduce operational emissions.
The loan bypasses traditional sovereign guarantees, marking a significant policy change in how AIIB deploys capital within the Philippines. AIIB President Zou Jiayi and ICTSI Chairman Enrique K. Razon Jr. signed the agreement during Zou’s first official visit to the country to secure this long-term partnership.
The investment directly funds infrastructure improvements at the Manila International Container Terminal (MICT), the South Luzon Container Terminal (SLCT) in Batangas, and the Mindanao Container Terminal (MCT). The project outlines specific throughput milestones over the next two years, requiring MICT to reach 3.7 million TEUs by 2027, while MCT and SLCT expand to one million TEUs and 800,000 TEUs respectively by 2028.
ICTSI will use the structural financing to systematically replace its legacy diesel-powered yard machinery with low-emission alternatives. The transaction specifically funds the procurement of new, fully electric quay cranes to lower total greenhouse gas emissions during daily terminal operations.
This $300 million transaction establishes a collaborative blueprint between the multilateral lender and the global port operator. By linking major industrial capacity expansion with immediate equipment electrification, the project sets a clear operational precedent for private infrastructure development across Southeast Asia.
"This transaction demonstrates how AIIB can support infrastructure development by deploying innovative financing instruments and working closely with global operators who have the scale and execution capacity to deliver impact for the people we serve," Zou said.
Razon said, “ICTSI welcomes this promising partnership with the AIIB, which supports our expansion and sustainability initiatives. We value AIIB’s shared commitment to long-term value creation, inclusive economic growth and responsible business practices, and as such, look forward to strengthening our partnership and accomplishing more together.”
Photo Caption:
AIIB and ICTSI executives at the $300 million port loan signing ceremony.
