ICTSI secures $750M, biggest financing ever

The Razon Group's global port firm International Container Terminal Services, Inc., or ICTSI, has raised $750 million from Metropolitan Bank & Trust Co. — its biggest credit facility to date as well as the largest bilateral facility extended by the bank.

The company informed the stock exchange Thursday that the six-year loan facility will be used to further expand its port operations worldwide.

Particularly, the proceeds will be used to refinance the global port operator's short-term obligations and to fund strategic mergers and acquisitions.

"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," Christian R. Gonzalez, ICTSI executive vice president, chief compliance officer and chief sustainability Officer, said.

Proactive on M&As

"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," he added.

As for Metrobank, its financial grant to ICTSI will help fulfill its strategic development plans to spur further economic growth.

"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," Metrobank Institutional Banking Sector head Mylene Caparas said in the report.

ICTSI Global Finance B.V., a subsidiary of ICTSI, also secured a seven-year loan of $300 million from Metrobank in 2019 to fund its capital expenditures and to refinance its then-existing obligations.

For the year, the ICTSI has earmarked $400 million for its capital expenditures this year primarily to improve the productivity and effectiveness of its various terminals.

Among others, the estimated capital expenditure will be utilized to fund the ongoing expansion at the company's terminals in the Philippines, Australia, Mexico, and the Democratic Republic of Congo.

During the first half of the year, the company booked a $313.80-million attributable net income, which was 7 percent higher than the recorded $294.48 million a year ago.

Notably, excluding the impairment of goodwill attributed to its Pakistan International Container Terminal, net income attributable to equity holders would have grown 10 percent to $324.41 million.