ATI inks loan pact with 9 banks

Port operator Asian Terminals Inc. (ATI) has signed a loan agreement with nine banking institutions to provide a revolving credit facility of as much as P1 billion, the company told the Philippine Stock Exchange.

ATI said the consortium of banking institutions, led by DBS Bank Philippines Inc. and Deutsche Bank AG Manila, has set a three-year maturity date for the loan. The company did not give any other details on the terms of the loan including interest charges and repayment scheme.

"The proceeds of the loan will be used for financing capital expenditures and refinancing existing loans," ATI said.

It added the loan package is expected to have a positive impact on the company’s current and future operations, its financial position and results of operations.

ATI earlier indicated plans to pursue a P1 billion modernization and expansion program of its Manila South Harbor terminal and its other facilities, translating to an expected increase in trade volume for the balance of the year as it continues to improve service standards in its business units.

In the first six months of 2001, ATI registered a net income of P233 million, almost at par with its earning in the same period last year but was a marked improvement from a reported 21 percent drop in net earning during the first quarter.

During the past year, ATI reported a 29- percent jump in earnings to P541 million, on higher revenues of P2.9 billion.

ATI is the sole operator of three of the country’s main seaports, the South Harbor in Manila, Mariveles Grains Terminal in Bataan and the Port of Batangas. In the first semester this year, ATI improved its output in port operations and logistics management with a 12-percent increase in revenues to P1.62 billion. – Conrado Diaz Jr.