MANILA – San Miguel Corporation’s (SMC) infrastructure unit has secured a PHP100-billion syndicated loan agreement with a consortium of major Philippine banks for its ongoing Metro Rail Transit 7 (MRT-7) project -- its first foray into mass transport systems.
The fund, which reached financial close on June 1, will help further speed up the construction of the MRT-7, which is at 61.92 percent completion as of June 14.
“We are happy to have achieved this milestone. 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,” SMC president and chief executive officer Ramon S. Ang said in a statement.
This funding is also a testament to the resilience and strong business prospects of SMC and its subsidiaries amid a very challenging macro-economic environment.
“The support we are getting from major Philippine banks shows that they recognize how important this project is to many Filipinos, and appreciate our overall vision of a Philippines made more progressive, resilient, and competitive, through investments in major projects such as efficient mass transport systems,” Ang said.
“MRT-7 will generate countless jobs, boost local economies, and create more opportunities for so many Filipinos. We are grateful to our lenders as this facility will allow us to remain on track to meeting our target to start operations in 2025 bringing us closer to a future where Filipinos can reap the benefits of enhanced mobility and accessibility.”
The Marcos administration has identified the MRT-7 project, which runs from Quezon City to the City of San Jose del Monte in Bulacan, as one of 194 high-impact infrastructure flagship projects under its “Build Better More” program, deemed crucial to improving the quality of life of Filipinos.
Members of the consortium are BDO Unibank, Philippine National Bank (PNB), Bank of Commerce (BankCom), Security Bank, and the Government Service Insurance System.
Lead arrangers and bookrunners for the transaction are BDO Capital & Investment Corp., PNB Capital and Investment Corp., SB Capital Investment Corp., and BankCom-Investment Banking Group.
Meanwhile, providing advice to the lenders and borrowers are the law firms of Picazo Buyco Tan Fider & Santos, and SyCip Salazar Hernandez & Gatmaitan, respectively.
Members of the consortium said they were honored to be involved in the landmark agreement for the MRT-7, which they described as an important infrastructure investment that will support the economic recovery of the country.
"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. We commend SMC for taking these steps towards the country's growth and we are proud to be their partner in this esteemed endeavor,” said BDO Capital & Investment Corporation president Eduardo Francisco.
PNB Institutional Banking head executive vice president 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.”
The MRT-7 project will have 14 stations, namely Quezon North Avenue Joint Station; Quezon Memorial Circle; University Avenue; Tandang Sora; Don Antonio; Batasan; Manggahan; Dona Carmen; Regalado; Mindanao Avenue; Quirino; Sacred Heart; Tala; and City of San Jose del Monte.
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-kilometer highway from San Jose del Monte to Bocaue. (PNA)
