The Asian Infrastructure Investment Bank (AIIB) will lend US$300 million to International Container Terminal Services (ICTSI) to support the latter's expansion and upgrade of three container terminals in the Philippines.
The senior unsecured corporate loan will support technology-enabled infrastructure upgrades at the Manila International Container Terminal (MICT), the South Luzon Container Terminal (SLCT) currently under development in Batangas province, and the Mindanao Container Terminal (MCT) in Misamis Oriental province.
ICTSI expects that together, the investments will increase annual container throughput capacity, improve berth productivity and contribute to the Philippines’ economic growth.
The financing will also support the purchase of fully electric quay cranes, and replacement of diesel-powered yard equipment, to reduce greenhouse gas emissions from terminal operations.
The project will increase MICT’s capacity to 3.7 million TEUs by 2027, MCT’s capacity to around one million TEUs by 2028 and SLCT’s capacity to 800,000 TEUs by 2028, according to ICTSI.
"This transaction demonstrates how AIIB can support infrastructure development by deploying innovative financing instruments and working closely with global operators who have the scale and execution capacity to deliver impact for the people we serve," Zou Jiayi, AIIB President, remarked.