Philippine Tycoon Enrique Razon’s ICTSI To Redeem As Much As $775 Million Bonds As Profits Rise
< img src=" https://thumbor.forbes.com/thumbor/fit-in/1200x0/filters%3Aformat%28jpg%29/https%3A%2F%2Fspecials-images.forbesimg.com%2Fimageserve%2F618a07750cf92bb2b4bab652%2F0x0.jpg%3FcropX1%3D0%26cropX2%3D3998%26cropY1%3D381%26cropY2%3D2629" class=" ff-og-image-inserted" > International Container Terminal Providers Inc. (ICTSI)– managed by billionaire Enrique Razon, Jr.– will buy back approximately $775 million bonds to manage its debt profile as the port operator’s earnings development speeds up amid a healing in global trade.
The business stated Monday its board approved the proposed buy back of approximately $400 million worth of 5.875% senior guaranteed perpetual capital securities and as much as $375 million of 4.875% senior ensured perpetual capital securities by its subsidiary Royal Capital BV, a special function entity based in the Netherlands.
Independently, ICTSI said its subsidiary ICTSI Treasury BV, another unique purpose entity based in the Netherlands, will issue brand-new senior notes ensured by the Philippine-based company. It did not disclose the quantity it plans to raise from the issuance of new notes.
ICTSI is starting the buyback program as the Philippine-based ports giant reported robust profits in the 9 months ended September, with net earnings leaping 73% to $316.4 million from a year ago as international trade improved throughout Asia, the Americas, Europe, the Middle East and Africa.
” This is extremely encouraging, and the company’s robust financial position provides a foundation to fund capital expenses completely through our strong cash circulations and continue to grow ICTSI sustainably for the long term benefit of all our stakeholders,” stated Razon, ICTSI’s chairman and president, in statement. ” We remain mindful that the pandemic continues to produce challenges throughout our industry. We have excellent momentum to deliver further disciplined growth and we look to the future with self-confidence.”
The company has earmarked $250 million this year to expansion strategies at the Manila International Container Terminal in addition to ports in Melbourne, Australia, Congo and Nigeria.
ICTSI stated gross profits from port operations increased 24% to $1.4 billion from a year earlier as freight volumes increased 11% to 8.3 million twenty-foot equivalent units during the period. The profits was likewise improved by higher tariffs at certain terminals together with contributions from brand-new ports and brand-new shipping line consumers, it included.
Razon’s grandfather began business with a port in Manila in 1916, and his father restored it after World War II. Razon grew the company internationally by establishing a presence in ports throughout Asia, the Middle East, Africa, Europe and Latin America.
Razon, 61, was ranked No. 3 on the list of the Philippines’ 50 Richest that was published in September. With a net worth of $5.8 billion, he also has interests in power generation, water energy and video gaming.
Published at Tue, 09 Nov 2021 05:45:08 +0000