ICTSI’s subsidiary Victoria International Container Terminal (VICT) at the Port Melbourne has signed an A$398m (US$302m) syndicated loan facility with seven global financial institutions to support its terminal’s on-going construction.
The institutions included 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.
Additionally, the Finland-based export credit agency Finnvera provided a guarantee for a portion of the facility.
The construction of the fully-automated terminal will be completed in two phases, with the first one ready for commercial operations in the fourth quarter of 2016 and phase two in 2017.
“The newly-secured financing will support the on-going construction and development of VICT,” ICTSI said in a statement. “The facility provides significant financial flexibility with long-dated tenors of 7, 10, and 16 years.”
Manuel V. Pascua, ICTSI’s corporate finance director, said in a statement: “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.”
Construction works on the new terminal, which will be located at the port’s Webb Dock East, started in 2014.