INTERNATIONAL Container Terminal Services, Inc. (ICTSI) said on Wednesday that it had secured a $300-million (corresponding to about P18.52 billion) senior unsecured loan from the Asian Infrastructure Investment Bank (AIIB) to finance capability expansion and technology upgrades at three Philippine container terminals.
In an announcement on Wednesday, the Razon-led global port operator said the funding will support infrastructure improvements on the Manila International Container Terminal (MICT), the South Luzon Container Terminal (SLCT), which stays under development, and the Mindanao Container Terminal (MCT).
ICTSI said the transaction marks AIIB’s first non-sovereign-backed deal within the Philippines.
The corporate also said the investments are expected to assist raise annual throughput capability and improve berth productivity across the terminals.
Under the project, MICT’s capability is targeted to succeed in 3.7 million twenty-foot equivalent units (TEUs) by 2027, while MCT and SLCT are projected to expand capability to at least one million TEUs and 800,000 TEUs, respectively, by 2028.
“ICTSI welcomes this promising partnership with the AIIB, which supports our expansion and sustainability initiatives,” ICTSI Chairman and President Enrique K. Razon, Jr. said.
“We value AIIB’s shared commitment to long-term value creation, inclusive economic growth and responsible business practices, and as such, look ahead to strengthening our partnership and accomplishing more together,” he added.
AIIB Chief Officer Yong Zhou said the transaction highlights the multilateral lender’s support for infrastructure development through private sector financing.
“This transaction demonstrates how AIIB can support infrastructure development by deploying progressive financing instruments and dealing closely with global operators who’ve the size and execution capability to deliver impact for the people we serve,” he said.
For the primary quarter, ICTSI reported a 22.56% increase in attributable net income to $293.57 million, driven by higher cargo volumes and contributions from recent terminals.
Gross revenues rose 28.94% to $961.11 million throughout the January-to-March period from $745.42 million a 12 months earlier.
Shares in ICTSI climbed P5.50 or 0.69% to shut at P800 each on Wednesday. — Ashley Erika O. Jose