ICTSI, Metrobank seal $750-M loan

At a glance

  • International Container Terminal Services Inc. (ICTSI) and Metropolitan Bank and Trust Co. (Metrobank) has signed on a $750-million credit facility deal to fund ICTSI's global expansion.

  • Proceeds of the loan facility will also be used for ICTSI’s M&As, to refinance short-term obligations, and to improve port operations worldwide.

  • The facility will also help ICTSI’s global portfolio.

Razon-controlled International Container Terminal Services Inc. (ICTSI) and Ty Group's Metropolitan Bank and Trust Co. (Metrobank) transacted their biggest credit and bilateral loan facility yet worth $750 million or roughly P42.6 billion, Metrobank announced.

In a statement Thursday, Aug. 31, Metrobank confirmed its largest six-year bilateral facility to any corporation was extended to ICTSI of billionaire Enrique K. Razon Jr.

Proceeds of the loan facility will be used for ICTSI’s port operations across the globe. Considered the world's largest independent terminal operator, ICTSI runs 34 ports in 20 countries.

“To date, this is the biggest credit facility secured by ICTSI and the largest bilateral facility extended by Metrobank,” said the Ty-led Metrobank, the country’s second largest private commercial bank.

ICTSI intends to refinance short-term obligations and to fund strategic mergers and acquisitions (M&As).

ICTSI Executive Vice President Christian R. Gonzalez said the Metrobank loan will allow the port terminal operator to explore M&A deals “of all sizes” and to be more “globally competitive, more efficient, and more accessible.”

The facility will also help ICTSI’s global portfolio and “in expanding our position as one of the Philippines’ true global corporate players,” said Gonzalez.

Metrobank noted that ICTSI has a strong track record for investing in new and existing terminals and to expand both offshore and domestic operations.

The last time Metrobank extended a loan facility to ICTSI was in 2019, through ICTSI Global Finance B.V., a subsidiary of ICTSI. At the time, the bank granted a seven-year loan worth $300 million for both capital expenditures and to refinance past loans.

Metrobank Institutional Banking Sector Head Mylene Caparas said the port operator is “building catalysts of growth worldwide”.

“ICTSI plays a vital role in various markets (and) we are happy to be able to support ICTSI’s global initiatives,” said Caparas.

For this year, ICTSI has allocated $400 million in capital expenditures to improve the “productivity and the effectivity” of its terminals worldwide.

Since 1988, ICTSI has been in the business of port development, management and operations in Asia Pacific, the Americas, Europe, the Middle East and Africa.

Meanwhile, Metrobank as one of the largest lenders in the Philippines, has consolidated assets of P2.9 trillion as of end-June, with total capital adequacy ratio of 17.9 percent and Common Equity Tier 1 ratio at 17.1 percent, among the highest in the industry.