SMC secures P100 billion loan for MRT-7 project

MANILA, Philippines — San Miguel Corp. ‘s (SMC) infrastructure unit has obtained a P100 billion syndicated loan from  a consortium of Philippine banks for its Metro Rail Transit 7 (MRT-7) project, its first foray into mass transport systems.

BDO Unibank, Philippine National Bank (PNB), Bank of Commerce (BankCom), Security Bank and state-owned Government Service Insurance System (GSIS) comprise the consortium of lenders.

The fund, which reached financial close last June 1, will help SMC complete the construction of the MRT-7, which is at 61.92 percent completion as of June 14, 2023.

SMC president and CEO Ramon Ang said the fresh funding is a milestone for the project.

“It reflects the confidence that our partner banks have in the government’s vision for progress, and our ability to execute on vital projects that are critical to the country’s social and economic development and growth,” Ang said.

The Marcos administration has identified the MRT-7 project as one of 194 high-impact infrastructure flagship projects under its “Build Better, More” program, which are deemed crucial to improving the quality of life of Filipinos.

SMC tapped BDO Capital & Investment Corp., PNB Capital and Investment Corp., SB Capital Investment Corp., and BankCom-Investment Banking Group. as lead arrangers and bookrunners for the transaction.

“SMC’s investments in various infrastructure projects boost the economy as these initiatives facilitate improved connectivity between regions and communities, positively impacting trade, tourism, and overall social integration,” said BDO Capital & Investment Corp. president Ed Francisco.

PNB Institutional Banking head EVP Jun Audencial said: “Investing in infrastructure paves the way to improve productivity and growth, expand distribution networks, facilitate trade and connectivity, and promote economic inclusion. SMC helps provide job opportunities for Filipinos and make the country more industrially competitive. Infrastructure investments are a step towards economic recovery and growth, and nation-building.”

Security Bank president and CEO Sanjiv Vohra, meanwhile, said the bank fully supports infrastructure projects that contribute to the overall development and growth of the Philippine economy.

GSIS, the pension fund for government workers, explained that “state involvement in infrastructure projects plays a crucial role in establishing a robust economy.

“Aligned with the GSIS’s vision of actively contributing to nation-building, we are pleased to lend a hand in easing passenger transportation challenges and reducing traffic congestion in Metro Manila, particularly in the transportation routes heading to and from the northern part of the Greater Manila Area,” GSIS president and general manager Jose Arnulfo Veloso said.

The MRT-7 project will have 14 stations and will run from Quezon City to San Jose del Monte, Bulacan.

It can accommodate 300,000 passengers in its first year of operations, and up to 850,000 passengers daily in its 12th year.

The project will also feature an intermodal transportation hub catering to other types of public transportation, as well as a 19-km highway from San Jose del Monte to Bocaue, Bulacan.