I Squared Capital is acquiring Philippines Coastal Storage & Pipeline Corporation, the Philippines’ largest independent import terminal, from Keppel Infrastructure Trust (KIT) and Metro Pacific Investment Corporation (MPIC) in a $460m deal (€4264m).
I Squared, which is investing through its ISQ Global Growth Market Fund, has agreed to acquire the respective 50% equity stakes held by KIT and MPIC in Philippines Coastal for an aggregate enterprise value of $460m, inclusive of $181m net debt.
Located within the Subic Bay Freeport Zone and serving the Luzon Economic Corridor, Philippines Coastal is an import terminal with a capacity of 6.3m barrels, representing over 20% of the country’s total import storage capacity.
Harsh Agrawal, senior partner at I Squared said: “Philippines Coastal is an essential infrastructure asset playing a critical role in supporting the growing energy needs of the Philippines. With urbanisation and the growing consumption of the rising middle class in the Philippines, fuel demand continues to increase steadily.
”We see strategic opportunities to expand the asset’s capabilities to support this growing domestic demand and to diversify into the storage of bio-fuels and sustainable aviation fuel.”
KIT and MPIC acquired their respective 50% equity stakes in Philippines Coastal in early 2021.
KIT said it intends to use the net proceeds from the transaction for general corporate purposes, including the funding of working capital, capital expenditure, debt repayment and other growth initiatives.
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