Victoria International Container Terminal (VICT), a unit of International Container Terminal Services Inc (ICTSI), signed a syndicated loan facility worth AUD 398 million (USD 304 million) with seven global financial institutions.
The loan provides significant financial flexibility with long-dated tenors of 7, 10, and 16 years.
The newly-secured financing will support the on-going construction and development of VICT at Webb Dock East in the Port of Melbourne, Australia.
“The VICT deal has pushed the project finance envelope in Australia on a number of aspects, and this has made the process quite challenging. Thanks to the collaborative effort put in together with our lending partners, we achieved a final debt structure that positions VICT for both short and long term financial strength,” ICTSI Corporate Finance Director Manuel V. Pascua said.
Construction of ICTSI’s container terminal commenced in late 2014, and will be completed in two phases.
Phase one is expected to be ready for commercial operations in the fourth quarter of 2016, while the second phase will be available in 2017.
The loan was signed with Citibank N.A., KFW IPEX-Bank, Standard Chartered Bank as Mandated Lead Arrangers and Bookrunners, Bank of China Limited, DBS Bank Ltd., Investec Bank PLC as Mandated Lead Arrangers, and Cathay United Bank as Lead Arranger.