ICTSI raises $350 M

MANILA, Philippines - Listed International Container Terminal Services Inc. (ICTSI) of port and gaming mogul Enrique Razon Jr. has raised $350 million to bankroll its capital expenditure program.

The port giant yesterday successfully closed and signed today an inaugural Loan Facility Program and a $350 million syndicated revolving credit facility with a large group of international and domestic banks.

ICTSI’s Loan Facility Program is the first such structure established by an Asian corporate. The program serves as a master platform from which other loan type financing instruments could be issued as required.

It also serves to harmonize the covenants, undertakings and other generic terms across the capital structure of ICTSI, in particular with its existing Euro Medium Term Note program.

ICTSI vice president and treasurer Rafael Consing said the positive reception to the innovative structure highlights the growing international market appetite for assets from the Philippines and further establishes the credentials of ICTSI’s management in bringing pioneering initiatives to the capital markets.

“We are very pleased with the result of the syndication. This transaction highlights the core attributes most suitable to our funding needs – streamlined execution, reduced negative interest carry, incurrence-based covenant regime and a diversified funding base,” Consing stressed.

ICTSI treasury director Arthur Tabuena said in a disclosure to the Philippine Stock Exchange (PSE) that ICTSI Global Finance B.V. would act as the borrower in the revolving credit facility with a principal amount of $350 million and a tenor of five years from signing date.

Tabuena said the facility was arranged by Australia and New Zealand Banking Group Limited and Standard Chartered Bank, with The Bank of New York Mellon, Singapore Branch acting as trustee and Standard Chartered Bank (Hong Kong) Limited acting as facility agent for the revolving facility.