Major Philippine lender BDO Unibank Inc. yesterday said it has arranged an P80-billion loan agreement for the New NAIA Infrastructure Corporation’s airport rehabilitation and modernization.
BDO Capital President Eduardo V. Francisco said in a Viber message several other banks will help fund the project, which is estimated to cost P170.6 billion.
BDO Capital, BDO’s investment house and financial arranger for the NAIA project, said it tapped its parent bank as a lender through the BDO Institutional Banking Group (BDO IBG).
The terms and tenure of the loan deal were not made available at this time.
According to the government’s Public-Private Partnership Center, NNIC or the consortium led by San Miguel Holdings Corporation, the infrastructure arm of San Miguel Corporation (SMC), won the bidding for the NAIA) rehabilitation project in February last year.
The project has a contract term of 15 years and is extendable by a further 10 years.
The consortium includes RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corporation (IIAC).
The breakdown of the project’s financing has yet to be announced. In September 2024, the Department of Finance said San Miguel had released the P30 billion upfront payment for the NAIA project.
San Miguel will also provide a fixed P2 billion annual payment and 82.16 percent national government revenue share, excluding passenger service charges.
As the project finally takes off, DOF said the government is expected to generate roughly P900 billion in revenues over the contract term.
In addition, NNIC said it has commenced regular annuity payments, with P1.58 billion paid from September 2024 to June 30, 2025.
BDO is currently the country’s biggest bank, and its total assets reached P4.88 trillion at the end of 2024.
BDO recorded a net income of 82.0 billion in 2024, up by 11.7 percent from P73.4 billion in 2023. NNIC General Manager Angelito Alvarez said in a statement: “BDO’s support has been crucial in providing the resources needed to modernize NAIA.”
