International Container Terminal Services Inc., the world’s largest independent terminal operator across six continents, signed a $750-million (P42 billion) six-year term loan agreement Thursday with Metropolitan Bank & Trust Co. to further expand the former’s port operations worldwide.
ICTSI chairman and president Enrique Razon Jr. and Metrobank chairman Arthur Ty witnessed the signing of the loan agreement by ICTSI executive vice president, chief compliance officer and chief sustainability officer Christian Gonzalez and Metrobank executive vice president and institutional banking sector head Mylene Caparas.
Metrobank said in a statement the amount was the largest bilateral facility it extended so far. It was also the biggest credit facility secured by ICTSI, one of the world’s largest, independent terminal operators across six continents.
Proceeds of the six-year loan facility will be used to refinance the global port operator’s short-term obligations and fund strategic mergers and acquisitions, it said.
Metrobank said the financial support to ICTSI serves as a platform to fulfill its ambitious strategic development plans and 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 Caparas said.
ICTSI holds a strong track record for investing in both new and existing terminals that will fuel the growth of its offshore and domestic operations.
“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,” said Gonzalez.
“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,” Gonzalez said.
ICTSI earmarked $400 million for 2023 capital expenditures to improve productivity and effectivity of various terminals.
ICTSI Global Finance B.V., a subsidiary of ICTSI, also secured a seven-year loan amounting to $300 million from Metrobank in 2019 to fund capex and refinance then existing obligations.
ICTSI reported net income attributable to equity holders of $313.80 million in the first half of 2023, up 7 percent from $294.48 million it earned in the same period last year on higher operating income and interest income.
Revenue from port operations grew 10 percent in the six-month period to $1.16 billion from $1.06 billion a year earlier.