AIIB is lending $300 million to International Container Terminal Services Inc. to expand and modernize key Philippine ports, including Manila International Container Terminal, South Luzon Container Terminal and Mindanao Container Terminal, boosting container capacity, productivity and sustainable, low-emission operations.
Photo courtesy of ICTSI
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The Asian Infrastructure Investment Bank (AIIB) will lend $300 million to International Container Terminal Services Inc. (ICTSI) to support the expansion and modernization of three container terminals in the Philippines.
The senior unsecured corporate loan, described as AIIB’s first non-sovereign-backed transaction in the Philippines, was signed during a ceremony attended by ICTSI chairman and president Enrique K. Razon Jr. and AIIB president Zou Jiayi during the latter’s first official visit to the country.
The financing will support technology-enabled infrastructure upgrades at the Manila International Container Terminal (MICT), the South Luzon Container Terminal (SLCT) currently under development in Batangas, and the Mindanao Container Terminal (MCT).
According to ICTSI, the investments are expected to increase annual container throughput capacity, improve berth productivity, and contribute to economic growth.
The funding will also support the acquisition of fully electric quay cranes and the replacement of diesel-powered yard equipment to help reduce greenhouse gas emissions from terminal operations.
Under the project, MICT’s capacity is expected to increase to 3.7 million twenty-foot equivalent units (TEUs) by 2027, while MCT’s capacity is projected to reach around 1 million TEUs by 2028. SLCT, meanwhile, is expected to achieve a capacity of 800,000 TEUs by 2028.
“ICTSI represents exactly the type of partnership AIIB aims to build as the Bank enters its second decade,” Zou said.
“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. We look forward to deepening this strategic relationship,” she added.
Razon welcomed the partnership, saying it supports the company’s expansion and sustainability initiatives.
“ICTSI welcomes this promising partnership with the AIIB, which supports our expansion and sustainability initiatives. 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,” Razon said.
AIIB, which began operations in 2016, currently has 111 approved members worldwide and a capitalization of $100 billion. The bank focuses on financing sustainable infrastructure and connectivity projects.
ICTSI, established in the Philippines in 1987, operates 33 terminals across 19 economies in Asia-Pacific, the Americas, Europe, the Middle East, and Africa. The company is listed on the Philippine Stock Exchange under the ticker symbol ICT.
