The consortium of Filipino-owned Megawide Construction Corp. and Bangalore-based GMR Infrastructure Ltd. signed an omnibus loan and security arrangement with banks to fund the expansion and rehabilitation of the Mactan-Cebu International Airport.
Michael Cosiquien, chairman and CEO of Megawide, said in a text message that the loan to GMR Megawide Cebu Airport Corp. will amount to P23.3 billion.
Megawide said in its disclosure to the Philippine Stock Exchange that the banks that signed the loan agreement include Unibank Inc., Bank of the Philippine Islands, Development Bank of the Philippines, Land Bank of the Philippines, Metropolitan Bank and Trust Co. and Philippine National Bank.
GMR Infrastructure Ltd. and GMR Infrastructure (Singapore) signed as sponsors, while BDO Capital and Investment Corp. has been picked as the lead arranger.
In April the consortium bagged the 25-year contract to set up a new international passenger terminal building, which will be constructed beginning next year and will be opened in 2018, refurbish the existing one and operate the entire facility.
The company started operating the airport, the country’s second busiest, in November. The airport’s annual passenger count is expected to increase from the current 4.5 million to 12.5 million in 2018.
Megawide needs to raise some P30 billion in three years for the construction of the new terminal.