The Asian Infrastructure Investment Bank (AIIB) will lend $300 million to International Container Terminal Services Inc. (ICTSI) to support the expansion and upgrade of three container terminals across the Philippines.
The senior unsecured corporate loan, AIIB’s first non-sovereign-backed transaction in the Philippines, was signed during a ceremony attended by Enrique K Razon Jr, ICTSI Chairman and President, and Zou Jiayi, AIIB President, as part of her first visit to the Philippines.
The 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, and the Mindanao Container Terminal (MCT).
Together, the investments are expected to 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, which will 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 1 million TEUs by 2028 and SLCT’s capacity to 800,000 TEUs by 2028.