International Container Terminal Services Inc. (ICTSI) tapped into a $750-million (P42.4 billion) long-term facility of Metropolitan Bank and Trust Co. (Metrobank) to refinance maturing obligations and for its capital expenditures (capex).
ICTSI said the six-year facility will be used to refinance short-term obligations and to fund “strategic mergers and acquisitions.”
“To date, this is the biggest credit facility secured by ICTSI and the largest bilateral facility extended by Metrobank,” ICTSI added.
In 2019, ICTSI Global Finance B.V., a subsidiary of ICTSI, also secured a seven-year $300-million loan from Metrobank to fund its capex and to refinance its then existing obligations.
Earlier this year, ICTSI said it will spend $400 million for its capex to be used to improve the productivity and effectivity of its various terminals.
The global container terminal operator said the capex will be spent for the ongoing expansion at its terminals in Australia, Mexico, the Philippines and Democratic Republic of Congo; second tranche of concession extension related expenditures in Madagascar; yard expansion at ICTSNL in Nigeria; quay expansion at ICTSI Rio in Brazil; development of a newly acquired terminal in East Java in Indonesia; equipment acquisitions and upgrades; and for maintenance requirements.
“Our long-standing relationship with Metrobank enables us to carry out our objective of continuously making our terminals around the world more globally competitive, more efficient, and more accessible. At the same time, this relationship enables us to act more proactively on M&A opportunities of all sizes. Metrobank has been a tremendous partner for us in building our global portfolio and in expanding our position as one of the Philippines’ true global corporate players,” said Christian Gonzalez, ICTSI executive vice president.
“ICTSI plays a vital role in various markets. Its efforts in building catalysts of growth worldwide make the Filipino standard, a goal for all. We are happy to be able to support ICTSI’s global initiatives and we are proud to play a role in its success,” said Mylene Caparas, Metrobank institutional banking sector head.
