MANILA, Philippines - A unit of port operator International Container Terminal Services Inc. (ICTSI) is selling $200 million of perpetual bonds to fund expansion.
In a disclosure to the local bourse, ICTSI said its board has approved the bond issuance by Royal Capital BV. ICTSI will guarantee the offer.
The bonds will pay an interest of 8.375% per annum for the first 10 years, after which the rate can be reset.
ICTSI owns a majority stake in Royal Capital through wholly owned subsidiary, ICTSI Ltd.
The port operator posted a net income of $98.3 million in 2010, a 79% increase from the previous year, boosted by the recovery in global trade.
ICTSI recently took over the Port of Portland in Oregon, US, and got contracts to operate ports in India and Croatia.