Chelsea Logistics signs $220M loan with Bank of China

Davao-based businessmen Dennis Uy's Chelsea Logistics Corp. on Thursday signed a $220-million loan deal with the Bank of China Ltd., to fund an ambition to play a bigger role in the country’s transportation and logistics industry.

Proceeds from the loan was earmarked for acquiring a substantial stake in publicly listed integrated transport solutions provider 2GO Group Inc.

Chelsea Logistics noted the loan forms part of an initial $3-billion financing package committed by the Bank of China during the state visit of President Rodrigo Duterte in Beijing in October 2016.

"We believe that synergies between Udenna and 2GO will bring together a stronger and more efficient shipping and logistics industry for the country," Bank of China Country Head Deng Jun said.
 
Chelsea Logistics acquired the outstanding capital stock of Udenna Investments B.V. in March. Udenna has interests in KGLI-NM Holdings Inc., which in turn has direct ownership in Negros Navigation Co. Inc. – the controlling shareholder of 2GO.
 
“Our investment in 2GO aligns with our commitment to contributing to our economy’s growth story by facilitating more efficient trading within and outside the archipelago,” said Uy, founder and chairman of Chelsea Logistics.

"We thank Bank of China for supporting our ongoing efforts to widen our horizon, offer better shipping and help propel the Philippine economy to new heights," Uy said.
 
Chelsea Logistics considers the loan agreement a vote of confidence by one of the world’s biggest financial institutions on the soundness of its acquisition of a stake in 2GO and the strategic importance of shipping to economic growth. — Ted Cordero/VDS, GMA News