ICTSI unit to issue $400 M securities

International Container Terminal Services Inc. (ICTSI) subsidiary Royal Capital B.V. is raising $400 million from the issuance of securities for acquisitions, capital expenditures and other corporate requirements.

In its disclosures to the Philippine Stock Exchange yesterday, ICTSI said its board of directors approved the issuance of senior perpetual capital securities worth $350 million and an additional $50 million, bringing the total offering size to $400 million.

The securities will be guaranteed by ICTSI and will be listed on the Singapore Exchange.

Tapped as joint managers for the transaction are Citigroup Global Markets Ltd., Credit Suisse (Hong Kong) Ltd. and Standard Chartered Bank.

ICTSI said the proceeds of the issuance of new securities would be used to finance acquisitions, capital expenditures and other general corporate purposes.

“We are pleased with the success of the new issue of fixed-for-life lead senior perpetual securities. This transaction is part of our strategy of prudent and value accretive capital and risk management, while further extending the duration of our liabilities to be in line with our concessionary assets. It similarly provides additional liquidity in the context of ICTSI’s growth strategy,” Rafael Consing Jr., ICTSI senior vice president and chief financial officer said.

ICTSI which was established in 1988, is engaged in the development, management and operation of ports.

At present, it has projects in developed and emerging market economies in the Asia-Pacific, the Americas, and Europe, the Middle East and Africa.

In particular, it owns and operates a total of 31 container terminal facilities in 18 countries, with a focus on facilities having total annual

throughputs ranging from 50,000 to 2.5 million twenty-foot equivalent units.

As of end-September, its net earnings reached $168.1 million, 11 percent higher than the $150.8 million in the same period in 2016.