The proceeds of the loan will be used to finance the major capital expenditures of WG&A which include the acquisition and refurbishing of its luxury liner SuperFery 14, re-fleeting of ground handling equipment and machinery, and the construction, development and expansion of port storage facilities.
Industry sources said the transaction was quite an achievement considering the economic challenges facing the country today. Guia Lim of UBP Capital said the loan was oversubscribed by 50 percent.
The syndicate of lenders includes Union Bank of the Philippines, Equitable PCI Bank, Rizal Commercial Banking Corp., AsiaTrust Bank, United Coconut Planters Bank and International Exchange Bank.
Enrique M. Aboitiz, WG&A president and CEO, said the size of the financing and the speed with which it was granted indicate the banking community’s trust and confidence on WG&A Philippines.
For the first three quarters of the year 2000, WG&A, the largest domestic shipping company in the country, posted a consolidated income before tax of P186.5 million, a 518-percent increase over same period last year.
Aboitiz said despite the political uncertainty, high fuel prices, a weak peso and higher interest rates, WG&A expects to maintain its leadership position in 2001. The company holds a 41-percent market share in the cargo business and a dominant 54-percent market share in the passage segment.
With the company’s new opened Bacolod and Coron, Palawan routes, which show a lot of revenue-earning potential, WG&A said it is confident of its strong stand in the market. It now has 22 ports of call, the largest in the industry and operates a total of 26 vessels including the newly acquired SuperFerry 14.