ICTSI unit OKs $150-M perpetual bond offer

MANILA, Philippines - The board of global port operator International Container Terminal Services Inc. (ICTSI), through unit Royal Capital B.V., has approved the issuance of up to $150 million worth of perpetual bonds.

The perpetual bonds, which have no maturity date, will be issued at a price of 98.375 percent, ICTSI told the stock exchange.

ICTSI will guarantee the issuance and use the proceeds for the development of greenfield projects, potential acquisitions and general corporate purposes.

The bonds will be consolidated with the $200 million subordinated perpetual capital securities issued in May 2011 by Royal Capital, the unit in charge of ICTSI’s foreign operations.

Hongkong and Shanghai Banking Corp. Ltd. and Citigroup Global Markets Ltd. were named as joint lead managers for the offer.

With the aim of further expanding its reach, ICTSI has accelerated port acquisitions in the last two years which include facilities in the US, Mexico, India and parts of Eastern Europe.

It is likewise looking to acquire new terminal concessions in Asia, Australia, the Indian subcontinent, the Middle East, Africa, Europe and North and South America.

Aside from having a dominant position in the Philippines, ICTSI also manages ports in Syria, Colombia, Brazil, Croatia, Japan, Brunei, Madagascar and China.