International Container Terminal Services Inc. said it will guarantee the 260 million euro facility loan of ICTSI Middle East DMCC, which recently secured a 20-year contract to operate, manage and develop a port in Sudan.
ICTSI said in a disclosure to the Philippine Stock Exchange its board authorized its execution of a term loan facility agreement in which the company will be acting as the guarantor and ICTSI Middle East DMCC as the borrower.
ICTSI said the agreement follows a deal signed on July 24, 2014 by ICTSI Global Finance B.V. as the borrower, the company as the guarantor and The Bank of New York Mellon, Singapore Branch as the trustee.
The agreement relates to a term loan credit facility for an aggregate amount of 260 million euro with a tenor of up to four years.
Citigroup Global Markets Asia Ltd. and Standard Chartered Bank were appointed as exclusive original mandated lead arrangers and book runners of the facility, while Citicorp International Ltd. was named the facility agent.
ICTSI Middle East DMCC earlier signed a concession agreement with Sea Ports Corporation of Sudan to operate, manage and develop the South Port Container Terminal for a 20-year period at the port of Port Sudan, Sudan.
ICTSI will assume the operational and development responsibility for SPC’s existing container terminal infrastructure and terminal handling equipment, while SPC will become the landlord and supervisory authority of the terminal.
The transfer of the facilities to ICTSI management will take place in the first quarter of 2019.
The SPCT in 2017 had a throughput of 470,000 TEU against the capacity of 1 million TEU.
SPCT has state-of-the-art container terminal assets. It has a land area of 180 hectares and 1,200 meters quay wall, with a design water depth of up to 16 meters and the capability to receive the largest container vessels of global shipping lines.