The $2 billion project finance breakdown was highlighted when the NAIA project was featured by Project Finance International (PFI), a respected publication owned by the London Stock Exchange.
The remaining $600 million in funding was provided by the SMC-backed consortium, which includes South Korea’s Incheon Airports.
Local banks show full support
“The [project finance] debt was overwhelmingly oversubscribed by local banks, leaving no scope for international lenders, including multilaterals,” PFI said, recognizing the NAIA privatization as the “Transport Deal of the Year” in its annual awards.
PFI noted that BDO Capital & Investment Corp. was tapped lead manager for the deal.
BDO Unibank, BDO Capital and Chinabank are controlled by the Sy family of the SM Group, Asia United Bank is owned by the Ng family of the Rebisco Group while Security Bank is led by tycoon Frederick Dy.
Development Bank of the Philippines is a state-owned lender while Bank of Commerce is the banking affiliate of SMC.
Loan terms
The loan has a 15-year tenor, extendable by another 10 years, matching the concession deal.
While the SMC Consortium took over operations of NAIA in September last year, this is the first time the project finance loan terms were detailed.
The rehabilitation aims to expand terminal capacity to handle 62 million passengers annually, up from 47 million, while upgrading airside infrastructure and modernizing air traffic control systems.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
