ICTSI to issue $250 million 10-year bond
Posted on March 8th, 2010
International Container Terminal Services, Inc. (ICTSI) is venturing into the overseas bond market. The port operator will be seen in the next few days offering as much as $250 million worth of 10-year bonds. ICTSI would be the first non-bank Philippine corporate issuer to offer the overseas bond market.
To arrange its maiden overseas debut, ICTSI tapped the services of foreign banks HSBC and JP Morgan. It has already started the fund-raising with an investors briefing in Manila recently. Top officials and bank arrangers are set to hold another road show in Hong Kong and Singapore.
The reception for the overseas bonds were said to be warm, so much so that they were oversubscribed during the Manila leg of the road show. The company will issue the bonds shortly after the Asian road show.
ICTSI will use the funds raised from the bond issue to fund the construction of existing and new terminals and pay debts.
The new securities will not be registered by the company in the United States nor in the Philippines. Instead, ICTSI plans to list the bonds on the Singapore Securities Trading Ltd.
Incorporated in 1987, ICTSI which is led by businessmen Enrique Razon Jr., was established to operate, manage and develop the Manila International Container Terminal (MICT), which handles international container cargo at the Port of Manila.
The company, and its subsidiaries, provides cargo handling and related services to container, storage facilities and services, and roll-on roll-off (Ro-Ro) and anchorage services to non-containerized cargo or general cargo.
Aside from MICT, the company also runs the Mindanao Container Terminal in Misamis Oriental, the Makar Wharf in General Santos, the Cubi Point at the Subic Bay Freeport Zone in Zambales, and Sasa International Port in Davao City.
ICTSI, and its subsidiaries, also operates in Brazil, Poland, Madagascar, Japan, Indonesia, Syria, China, Ecuador, Colombia, Georgia, Brunei and Argentina.
