ICTSI to receive USD300m loan from AIIB to expand port connectivity
International Container Terminal Services Inc. (ICTSI)
is set to receive a loan of USD300 million from the Asian Infrastructure Investment Bank (AIIB) to support the expansion and upgrade of three container terminals across the Philippines.
The senior unsecured corporate loan – AIIB’s first non-sovereign-backed transaction in the Philippines – was signed during a ceremony attended by Enrique K Razon Jr, ICTSI Chairman and President, and Zou Jiayi, AIIB President, as part of her first visit to the Philippines.
The loan 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).
Together, the investments are expected to increase annual container throughput capacity, improve berth productivity and contribute to the Philippines’ economic growth. The financing will also support the purchase of fully electric quay cranes, and replacement of diesel-powered yard equipment, which will reduce greenhouse gas emissions from terminal operations.
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The project will increase MICT’s capacity to 3.7 million TEUs by 2027, MCT’s capacity to around 1 million TEUs by 2028 and SLCT’s capacity to 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.”
Razon, on the other hand, said “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.”
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 111 approved members worldwide, is capitalized at USD 100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
