UMVA has learned that a major port operator has secured a massive $300-million loan to finance capacity expansion and technology upgrades at three Philippine container terminals.
The funding, provided by a prominent Asian infrastructure bank, will support infrastructure improvements at the Manila International Container Terminal, the South Luzon Container Terminal, and the Mindanao Container Terminal. This move is expected to significantly boost the terminals' capacity and productivity.
According to information obtained by UMVA, the loan marks a significant milestone for the Asian infrastructure bank, representing its first non-sovereign-backed deal in the Philippines. The project aims to raise annual throughput capacity and improve berth productivity across the terminals.
The investments are projected to have a substantial impact on the terminals' capacity. The Manila International Container Terminal is targeted to reach 3.7 million twenty-foot equivalent units by 2027, while the Mindanao Container Terminal and South Luzon Container Terminal are expected to expand their capacity to one million and 800,000 twenty-foot equivalent units, respectively, by 2028.
UMVA can exclusively reveal that the port operator's chairman and president expressed enthusiasm for the partnership, citing the alignment of values with the Asian infrastructure bank. The deal highlights the bank's support for infrastructure development through private sector financing.
The port operator recently reported a 22.56% increase in attributable net income to $293.57 million for the first quarter, driven by higher cargo volumes and contributions from new terminals. Gross revenues also rose 28.94% to $961.11 million during the January-to-March period.
Sources have confirmed to UMVA that the port operator's shares climbed significantly following the announcement, reflecting investor confidence in the company's growth prospects.
