MANILA, Philippines – The joint venture undertaking the Mactan Cebu International Airport (MCIA) project has secured through debt more than half of the financing required for the airport’s rehabilitation and expansion.
In a statement, the tandem of Filipino-owned Megawide Construction Corp. and Bangalore-based GMR Infrastructure said it has bagged 70 percent of the amount needed to finance the MCIA project through an omnibus loan and security agreement with a syndicate of six local banks.
BDO Capital and Investment Corp. has been the lead arranger while the Bank of the Philippine Islands, Development Bank of the Philippines, Land Bank of the Philippines, Metropolitan Bank & Trust Co., and Philippine National Bank are the participants in the lending consortium.
With the transaction, the joint venture called GMR Megawide Cebu Airport Corp. (GMCAC) said it has tied-in the required funding for delivering the improvements in Terminal 1 as well as the construction of a new Terminal 2.
“Hence, this is an important milestone in GMCAC’s journey in turning MCIA into an airport of international standards and one that all Filipinos will be proud of,” GMCAC said.
“This transaction, and the wide participation in it, is also a validation by the banking industry of the financial sustainability of the project as well as the value it creates for the local and national economy,” the Megawide and GMR team added.
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The joint venture that is 60 percent owned by Megawide and 40 percent owned by the GMR Group will contribute 30 percent of the total project cost while the 70 percent will be funded through debt.