MANILA, Philippines — The country’s largest bank is confirmed to be one of the lenders that will fund the P170.6-billion rehabilitation of the Ninoy Aquino International Airport (NAIA), but rejected any and all offers to be an investor in the project.
BDO Unibank Inc. chairman Teresita Sy-Coson told reporters that the bank is working with the New NAIA Infrastructure Corp. (NNIC), led by San Miguel Corp., on its 15-year concession to manage NAIA.
Sy-Coson confirmed that BDO is negotiating with NNIC bilaterally for a possible loan to finance the rehabilitation and upgrade of the airport.
However, Sy-Coson was quick to dispel rumors that BDO is acquiring a share in NNIC to take on a direct role in the operations and maintenance of NAIA. She said BDO is happy to serve on the sidelines as a financier of the largest privatization project so far of the Marcos administration.
“Right now, it is more bilateral (discussions with NNIC). We are OK with no investments, but just a lender,” Sy-Coson said.
BDO Capital and Investment Corp., the investment house of Sy-led BDO, will be the financial arranger for the rehabilitation of NAIA.
BDO Capital said it would invite banks, such as BDO, to act as lenders for the project as a show of support for infrastructure development in the Philippines.
“This is also the group’s way of supporting the private-public partnership of the government and to support the infrastructure development of the country,” BDO Capital said.
BDO is the biggest bank in the country with an asset size of P4.28 trillion, ahead by at least P1 trillion of the next largest, Land Bank of the Philippines.
Likewise, BDO Capital underwrites the fundraising activities of some of the largest conglomerates, raising a total of P3.81 trillion for clients between 2020 and 2022.
Sy-Coson said BDO opted to become a lender for the rehabilitation of NAIA given the urgency to fix the airport. She also saw potential in the consortium that won the project.
NNIC will assume control of NAIA on or before September 11, taking on the Herculean task of turning around one of the worst airports in the world within 15 years.
NNIC, formerly SMC SAP & Co. Consortium, bagged the P170.6 billion contract to operate and maintain NAIA on the promise that it will remit 82.16 percent of revenue from airport business to the government.