Razon's ICTSI secures $300-million loan from AIIB

International Container Terminal Services Inc. (ICTSI), the multinational ports empire of magnate Enrique Razon Jr., has secured a multi-million dollar financing from China-backed multilateral lender Asian Infrastructure Investment Bank (AIIB) to bankroll its ports expansion initiative across Manila, Batangas, and Mindanao.

In a disclosure to the Philippine Stock Exchange on Wednesday, ICTSI announced that AIIB will lend the ports company $300 million “to 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).”

The loan deal is AIIB’s first non-sovereign-backed transaction in the Philippines.

ICTSI said the loan financing will also support the purchase of fully electric quay cranes, and the replacement of diesel-powered yard equipment, which will reduce greenhouse gas emissions from terminal operations.

Moreover, the company added that is expansion and upgrade initiative will increase MICT’s capacity to 3.7 million TEUs (Twenty-foot Equivalent Units) by 2027, MCT’s capacity to around one million TEUs by 2028 and SLCT’s capacity to 800,000 TEUs by 2028.

“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,” said Razon. — BM, GMA News