AT A GLANCE
- San Miguel Corporation’s (SMC) infrastructure unit has secured a P100-billion syndicated loan agreement with a consortium of major Philippine banks for its ongoing Metro Rail Transit 7 (MRT-7) project, the conglomerate’s first foray into mass transport.
San Miguel Corporation’s (SMC) infrastructure unit has secured a P100-billion syndicated loan agreement with a consortium of major Philippine banks for its ongoing Metro Rail Transit 7 (MRT-7) project, the conglomerate’s first foray into mass transport.
The fund, which reached financial close June 1, will speed up the construction of the MRT-7, which is 61.92 percent finished, as of June 14, 2023.
Members of the lending consortium include 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.
“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,” says SMC president and CEO Ramon S. Ang.
“It reflects the confidence that our partner banks have in the government’s vision for progress, and our ability to execute vital projects critical to economic development and growth,” he remarked.
The Marcos administration has identified the MRT-7 project, which runs from Quezon City to San Jose del Monte City in Bulacan, as one of 194 high-impact infrastructure flagship projects under its “Build Better, More” program.
Members of the lending consortium said they were honored to be involved in the landmark agreement for the MRT-7.
“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,” noted BDO Capital & Investment Corporation President Eduardo V. Francisco.
“Infrastructure investments are a step towards economic recovery, growth, and nation-building,” commented PNB Institutional Banking Head EVP Jun C. Audencial. “SMC helps provide job opportunities for Filipinos and make the country more industrially competitive.”
For its part, BankCom welcomed the opportunity to participate in the SMC project, which would “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,” noted BankCom President and CEO Michelangelo R. Aguilar.
“SMC is at the forefront of nation-building through its various infrastructure projects that bear national importance and greatly benefit Filipinos,” concurred Security Bank president and CEO Sanjiv Vohra.
GSIS, the pension fund for government workers, explained that “state involvement in infrastructure projects plays a crucial role in establishing a robust economy.
“Aligned with the GSIS’s 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,” days GSIS president and general manager Jose Arnulfo “Wick” Veloso.
The MRT-7 project will have 14 stations: 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 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-km highway from San Jose del Monte to Bocaue.
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The article was originally published in Manila Bulletin and written by Emmie V. Abadilla.
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