MPIC offloads Subic fuel storage, earns P29B

MPIC offloads Subic fuel storage, earns P29B | Daily Tribune

Metro Pacific Investments Corp. (MPIC) is set to receive a much-needed capital boost from its planned sale of a 50 percent stake in Philippine Coastal Storage & Pipeline Corp. (PCSPC) to an affiliate of global infrastructure investor I Squared Capital (ISQ).

The sale is part of a joint deal with Singapore-listed Keppel Infrastructure Trust (KIT), which is also divesting half of its interests in PCSPC to ISQ.

The transaction values PCSPC at an enterprise value of up to $510 million, or about P29.1 billion, subject to the achievement of performance milestones.

PCSPC, located in the Subic Bay Freeport Zone, operates the Philippines’ largest import terminal for jet fuel, petroleum, and sustainable fuels, with a storage capacity exceeding 6 million barrels. It plays a key role in securing the country’s fuel supply, supporting major commodity providers, and other strategic sectors.

“The acquisition of PCSPC has been pivotal in securing safe, reliable, and environmentally responsible fuel logistics for the Filipino market. Under our stewardship, PCSPC has grown into a leader in fuel storage and logistics, with a strong commitment to safety and sustainability,” MPIC chairman, president and CEO Manuel V. Pangilinan said.

Core business strategy

Pangilinan added that the divestment aligns with MPIC’s strategy to focus on sectors where it can deliver the greatest value to the Philippines.

He said he is confident that ISQ, with its global expertise, would elevate PCSPC and continue its contribution to the country’s energy landscape.

Meanwhile, Harsh Agrawal, Senior Partner at I Squared Capital, said the acquisition supports ISQ’s commitment to investing in essential infrastructure that drives economic growth.

“We are excited to acquire PCSPC, an essential infrastructure asset that plays a critical role in supporting the Philippines’ growing energy requirements. We look forward to working with PCSPC’s strong management team to enhance its critical role in the Philippine economy and invest further in the platform to expand into new products and areas,” Agrawal said.

The deal’s completion is subject to regulatory approvals and customary closing conditions. During the transition, MPIC, KIT, and ISQ will collaborate with PCSPC’s management to ensure continuity of operations.

UBS AG Singapore Branch acted as MPIC’s financial advisor, while Rippledot Capital provided advisory services to ISQ.