AS the global logistics sector recovers from the pandemic, the world’s largest terminal operator, the International Container Terminal Services Inc. (ICTSI), secured a $750-billion worth loan from the Metropolitan Bank & Trust Co. (Metrobank).
According to Metrobank, the loan that ICTSI will use to expand international operations is the largest bilateral facility extended by the country’s fourth-largest lender in terms of assets. It is also the biggest credit facility of ICTSI.
“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,” said Metrobank Institutional Banking Sector Head Mary Mylene A. Caparas.
ICTSI said proceeds of the 6-year loan facility will help global port operators refinance its short-term obligations and fund strategic mergers and acquisitions.
Metrobank said ICTSI has 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,” ICTSI Executive Vice President, Chief Compliance Officer and Chief Sustainability Officer Christian R. Gonzalez 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,” Gonzalez added.
Metrobank sees its financial support to ICTSI as a platform to fulfill its ambitious strategic development plans and further economic growth.
This year, ICTSI said it earmarked $400 million for its capital expenditures to be used to improve productivity and effectivity of its various terminals.
In 2019, ICTSI Global Finance B.V., a subsidiary of ICTSI, also secured a 7-year loan amounting to $300 million from Metrobank to fund its capital expenditures and to refinance its existing obligations.
ICTSI saw its net income attributable to equity holders increase by seven percent to $313.8 million in the first half of 2023 from $294.48 million the year prior, thanks to the strong performance of its terminals across the globe.
In the same comparative periods, ICTSI recorded a 10-percent growth in gross revenues to $1.16 billion from $1.06 billion, owing to the nine-percent increase in consolidated volume to 6.28 million twenty-foot equivalent units (TEUs) from 5.75 million TEUs.
Image credits: www.ictsi.com