RAZON-LED International Container Terminal Services, Inc. (ICTSI) has signed a $750-million loan agreement with Metropolitan Bank & Trust Co. (Metrobank), its biggest loan to date, the listed terminal operator said on Thursday.
The six-year credit facility will fund the company’s planned expansion overseas, it added. Established in 1987, ICTSI operates 33 terminals in 20 countries across six continents.
“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,” ICTSI Executive Vice-President Christian R. Gonzalez said in a statement.
Proceeds from the loan will also fund short-term obligations and strategic mergers and acquisitions (M&A), the company said.
“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,” Mr. Gonzalez added.
ICTSI has set a goal of investing in new and existing terminals to accelerate the growth of its offshore and domestic operations.
“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,” Mary Mylene A. Caparas, institutional banking sector head of Metrobank, said.
For 2023, ICTSI has said that it is setting aside about $400 million for capital expenditure (capex) to expand and improve productivity in its terminals in Australia, Mexico, the Philippines, the Democratic Republic of Congo, and Nigeria.
In 2019, ICTSI said its subsidiary ICTSI Global Finance B.V. had secured a $300-million seven-year loan from Metrobank to fund its capex and refinance obligations.
At the local bourse on Thursday, shares in the company shed P5.60 or 2.63% to end at P207.20 apiece. — Ashley Erika O. Jose