International Container Terminal Services Inc. (ICTSI) has secured a US$300-million senior unsecured corporate loan from the Asian Infrastructure Investment Bank (AIIB) to fund major upgrades and expansion works in three Philippine container terminals.
The financing will support infrastructure improvements at the Manila International Container Terminal, the South Luzon Container Terminal (SLCT) being developed in Batangas, and the Mindanao Container Terminal (MCT).
ICTSI said the investments are expected to raise annual container handling capacity, improve berth productivity, and support the country’s trade and economic growth.
Part of the loan will also be used to purchase fully electric quay cranes and replace diesel-powered yard equipment, a move aimed at reducing greenhouse gas emissions from port operations.
The expansion program is projected to increase MICT’s capacity to 3.7 million twenty-foot equivalent units (TEUs) by 2027, MCT’s capacity to around 1 million TEUs by 2028, and SLCT’s capacity to 800,000 TEUs by 2028.
AIIB President Zou Jiayi said the transaction reflects the bank’s goal of supporting high-impact infrastructure through partnerships with experienced global operators.
“ICTSI represents exactly the type of partnership AIIB aims to build as the Bank enters its second decade,” Zou said.
“This transaction demonstrates how AIIB can support infrastructure development by deploying innovative financing instruments and working closely with global operators who have the scale and execution capacity to deliver impact for the people we serve,” she added.
ICTSI Chairman and President Enrique Razon Jr. welcomed the financing partnership, saying it supports the company’s 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,” Razon said.