Manila: A USD300 million (about PHP18.6 billion) loan from the Asian Infrastructure Investment Bank (AIIB) will fund the expansion and modernization of three container terminals operated by the Razon-led International Container Terminal Services, Inc. (ICTSI) in the Philippines.

According to Philippines News Agency, ICTSI stated that the senior unsecured corporate loan, which marks AIIB's first non-sovereign-backed financing in the country, will be used to upgrade the Manila International Container Terminal (MICT), the South Luzon Container Terminal (SLCT) currently under construction in Batangas, and the Mindanao Container Terminal (MCT).

The funding is intended to enhance annual container throughput capacity, improve berth productivity, and contribute to the economic growth of the Philippines, as mentioned in ICTSI's news release. It will also facilitate the acquisition of fully electric quay cranes and the replacement of diesel-powered yard equipment, aiming to reduce greenhouse gas emissions from terminal operations.

The project aims to increase MICT's capacity to 3.7 million TEUs (Twenty-Foot Equivalent Units) by 2027, MCT's capacity to around 1 million TEUs by 2028, and SLCT's capacity to 800,000 TEUs by 2028, according to the company.

ICTSI chair and president Enrique Razon Jr. expressed that the financing supports their expansion and sustainability initiatives. He emphasized AIIB's shared commitment to long-term value creation, inclusive economic growth, and responsible business practices, and expressed anticipation for a strengthened partnership.

AIIB chair and president Zou Jiayi highlighted that ICTSI exemplifies the type of partnership the bank aims to develop as it enters its second decade. She noted that this transaction demonstrates AIIB's capacity to support infrastructure development through innovative financing instruments and collaboration with global operators capable of delivering impactful results. She expressed eagerness to deepen this strategic relationship.