INTERNATIONAL Container Terminal Services Inc. (ICTSI) has signed a $300-million loan agreement with the Asian Infrastructure Investment Bank (AIIB) to help fund the expansion and upgrade of three container terminals across the Philippines.
The senior unsecured corporate loan — AIIB’s first non-sovereign-backed transaction in the Philippines — was signed on Wednesday during a ceremony attended by ICTSI Chairman and President Enrique Razon Jr. and AIIB President Zou Jiayi.
ICTSI noted that this was Zou’s first visit to the Philippines and the AIIB chief was to have remarked that “ICTSI represents exactly the type of partnership AIIB aims to build as the bank enters its second decade.”
“This transaction demonstrates how we 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,” she added.
ICTSI said the loan would support technology-enabled infrastructure upgrades at the Manila International Container Terminal (MICT), the South Luzon Container Terminal (SLCT) currently under development in Batangas and the Mindanao Container Terminal (MCT). The investments are expected to increase annual container throughput capacity and improve berth productivity.
Proceeds of the loan will also support the purchase of fully electric quay cranes and the replacement of diesel-powered yard equipment, helping reduce greenhouse gas emissions.
ICTSI said the project would increase MICT’s capacity to 3.7 million twenty-foot equivalent units (TEUs) by 2027, MCT’s to around one million TEUs by 2028, and SLCT’s to 800,000 TEUs by 2028.
Razon welcomed the partnership with AIIB, saying it supported the company’s 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," he said.
ICTSI shares on Wednesday climbed P5.50, or 0.69 percent, to close at P800.00 per share.
ED PAOLO SALTING
