Metro Manila (CNN Philippines, June 27) — The infrastructure unit of San Miguel Corporation (SMC) has secured a ₱100-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 last June 1, is seen to help further speed up the construction of the MRT-7, which is at 61.92% completion as of June 14 this year.
\”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 CEO Ramon S. Ang said.
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.
Providing advice to the lenders and borrowers are the law firms of Picazo Buyco Tan Fider & Santos, and SyCip Salazar Hernandez & Gatmaitan, respectively.
Ang said the 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,\” he added.
According to Ang, MRT-7 will generate jobs, boost the local economy, and create more opportunities for Filipinos.
The Marcos administration previously identified the MRT-7 project, which runs from Quezon City to San Jose del Monte in Bulacan, as one of 194 high-impact infrastructure flagship projects under its \”Build Better, More\” program.
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 country’s economic recovery.
\”We commend SMC for taking these steps towards the country’s growth and we are proud to be their partner in this esteemed endeavor,” BDO Capital & Investment Corporation President Eduardo V. Francisco said.
\”Infrastructure investments are a step towards economic recovery and growth, and nation-building and SMC helps provide job opportunities for Filipinos and make the country more industrially competitive,\” PNB Institutional Banking Head EVP Jun C. Audencial added.
For its part, BankCom welcomed the opportunity to participate in the SMC project, which it said would \”hugely uplift our society and contribute to the Group’s vision of a resilient and globally competitive Philippines.\”
\”Massive infrastructure projects such as the San Miguel Group’s investment in the MRT-7 play a crucial role in building the nation. As SMC Infrastructure continues to strengthen its portfolio and operate the largest infrastructure network in the country, the lives of thousands of Filipinos are made better through safe, sustainable, and accessible transport systems,\” BankCom President and CEO Michelangelo R. Aguilar said.
Security Bank president and CEO Sanjiv Vohra, on the other hand, said the bank fully supports infrastructure projects that contribute to the overall development and growth of the Philippine economy.
\”We recognize the economic importance of the MRT-7 as it provides a much-needed mobility option for the general population that is safe, fast, and reliable. With this project, we are truly proud to enable a convenient, alternative means of transportation that will help commuters from Quezon City to Bulacan to have more time for work, family, and recreation,\” the bank official said.
GSIS, the pension fund for government workers, explained that state involvement in infrastructure projects plays a crucial role in establishing a robust economy. It added that the project aligned with the GSIS’ vision of actively contributing to nation-building.
“We are pleased to lend a hand in easing passenger transportation challenges and reducing traffic congestion in Metro Manila, particularly in the transportation routes heading to and from the northern part of the Greater Manila Area,” GSIS president and general manager Jose Arnulfo Veloso said.
