In a disclosure to the Philippine Stock Exchange, ICTSI said the facility was made available to newly-established subsidiary ICTSI Capital BV.
ICTSI chief financial officer Martin O. Neil said this marks he company’s first borrowing in the international syndicated loan market. "It has proved a highly successful exercise, and such a testament to ICTSI’s performance, management and the market niche we have carved for ourselves. We went to the market seeking a $80 million standby credit facility, to be used for future acquisitions in the marine container terminal sector, and this was heavily oversubscribed, hence we upsized the deal in response to the very strong demand." O’Neil said.
ICTSI chairman and president Enrique Razon said the facility will be used to fund the company’s expansion overseas. He said the company is looking at signing a new container terminal concession soon.
ICTSI currently maintains an overseas portfolio of terminals on four continents and has investments and operating experience in six continents.
ICTSI is widely recognized as a leading global developer, manager and operator of marine container terminals handling annual throughputs in the range of 50,000 twenty-foot equivalent units (TEU) to 105 million TEU. It has extensive experience in international operations. It was in the front rank of container terminal operating groups who took their expertise overseas starting in the 1990s in response to privatization opportunities in the sector.
Consolidation in the container terminal operating sector, which has been characterized by both acquisition activity and increased linkage between groups at the top end of the sector, has seen ICTSI emerge as one the few remaining true independents in the container terminal operating sector, a reality that the group expects to progressively generate more opportunities from in the global marketplace.
"We are a robust group, looking to capitalize on our proven know-how and expand aggressively internationally over the short to medium term and this new financial ‘war chest’ will undoubtedly help us to achieve this important goal," Razon said.