ICTSI secures $300-M AIIB loan for terminal upgrades, expansion

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) said on Wednesday that it had secured a $300-million (equivalent to about P18.52 billion) senior unsecured loan from the Asian Infrastructure Investment Bank (AIIB) to finance capacity expansion and technology upgrades at three Philippine container terminals.

In a statement on Wednesday, the Razon-led global port operator said the funding will support infrastructure improvements at the Manila International Container Terminal (MICT), the South Luzon Container Terminal (SLCT), which remains under development, and the Mindanao Container Terminal (MCT).

ICTSI said the transaction marks AIIB’s first non-sovereign-backed deal in the Philippines.

The company also said the investments are expected to help raise annual throughput capacity and improve berth productivity across the terminals.

Under the project, MICT’s capacity is targeted to reach 3.7 million twenty-foot equivalent units (TEUs) by 2027, while MCT and SLCT are projected to expand capacity to 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 forward 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 innovative financing instruments and working closely with global operators who have the scale and execution capacity to deliver impact for the people we serve,” he said.

For the first quarter, ICTSI reported a 22.56% increase in attributable net income to $293.57 million, driven by higher cargo volumes and contributions from new terminals.

Gross revenues rose 28.94% to $961.11 million during the January-to-March period from $745.42 million a year earlier.

Shares in ICTSI climbed P5.50 or 0.69% to close at P800 each on Wednesday. — Ashley Erika O. Jose