International Container Terminal Services Inc (ICTSI) has taken out a $750m loan to pay for plans to expand port operations through acquisition.
The Philippines-based terminal operator has secured the six-year loan term facility from Metrobank, which is also headquartered in the country.
“To date, this is the biggest credit facility secured by ICTSI and the largest bilateral facility extended by Metrobank,” Manila-listed ICTSI said in a statement.
“Proceeds of the six-year loan facility will be used to refinance the global port operator’s short-term obligations and to fund strategic mergers and acquisitions.”
ICTSI, which manages ports and terminals in the Asia Pacific, the Americas, Europe, the Middle East and Africa, neither provided any information on its expansion plans nor immediately returned calls.
“This relationship (with Metrobank) enables us to act more proactively on M&A opportunities of all sizes,” said Christian Gonzalez, ICTSI’s executive vice president, chief compliance officer and chief sustainability officer.
ICTSI said it has set aside $400m this year for capital spending on terminals it operates.
In 2019, subsidiary ICTSI Global Finance received a seven-year $300m loan from Metrobank to put toward capital expenditures and refinancing then-existing obligations.
In mid-August, ICTSI posted $159m in net income attributable to equity holders for the second quarter, up 5% from $152m in attributable net profit realised in the same period in 2022.
The company was able to achieve the higher profit due to higher container volumes at its terminals and a decline in Covid-19-related expenses.
