ICTSI unit secures $300 M loan for Australia terminal facility
A unit of listed International Container Terminal Services Inc. (ICTSI) has entered into a $300 million loan agreement with seven global financial institutions to support the development of a container terminal project in Australia.
In a filing yesterday, ICTSI told the Philippine Stock Exchange its unit, Victoria International Container Terminal (VICT), signed a syndicated loan facility worth $300 million (or 398 million Australian dollars) with Citibank N.A., KFW IPEX- Bank, Standard Chartered Bank, Bank of China Limited, DBS Bank Ltd., Investec Bank PLC and Cathay United Bank.
Finnvera, an export credit agency based in Finland, like- wise had a role in the transaction as a guarantor for a portion of the loan.
The facility has long dated tenors of seven, 10 and 16 years, giving the firm financial flexibility.
The loan will be used to fund the ongoing construction and development of VICT at Webb Dock East in the port of Melbourne, Australia.
“VICT is extremely pleased to have signed this project finance facility with internationally renowned banks as this is a testament to the viability of VICT. We remain committed to working with all our partners – the Port of Melbourne, local community, our contractors, and now our lenders – to deliver to Melbourne a worldclass and industry leading container terminal,” VICT chief executive officer Anders Dommestrup said.
For his part, ICTSI corporate finance director Manuel Pascua said the loan facility would position VICT for both short and long term financial strength.
Construction of the terminal in Melbourne which started in late 2014, is being undertaken in two phases. The first phase is expected to be ready for commercial operations in the fourth quarter of this year, while the second phase would be completed next year.
The latest transaction shows the confidence of banks in VICT’s business plan as well as in ICTSI’s ability to effectively implement projects.
ICTSI is engaged in port operations, management and development.
Apart from VICT in Australia, the firm is also involved in other projects in the Asia Pacific, the Americas, Europe and the Middle East, as well as Africa.
As of the first quarter, ICTSI’s net earnings reached $45.1 million, down 21 percent from $56.8 million in the same period last year.
Net income attributable to equity holders of ICTSI also slid 22 percent to $42.2 million in the January to March period this year from $54 million in the comparable period in 2015.