I Squared Capital has agreed to acquire Philippines Coastal Storage & Pipeline, including its affiliate entities, Keppel Infrastructure Trust, Singapore and Metro Pacific Investment.
The acquisition will proceed through the ISQ Global Infrastructure Fund, positioning I Squared as the owner of the ‘largest’ independent import terminal in the Philippines, located in the Subic Bay Freeport Zone.
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The terminal, which serves the Luzon Economic Corridor, boasts a capacity of 6.3mbbl, accounting for more than 20% of the Philippines’ import storage capacity.
Philippines Coastal plays an important role in ensuring the steady supply of liquid fuel products to the country, catering to major commodity providers and strategic interests.
Spanning nearly 160 hectares, the facility comprises 91 tanks for various fuel types and two jetties capable of handling a range of vessels including Medium Range 1 ships of up to 50,000 deadweight tonnage.
The catchment area of Philippines Coastal covers a substantial portion of the national fuel demand, including more than 55% of jet fuel and over 35% of diesel/gasoline.
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By GlobalDataIt also meets the growing demand for sustainable fuels such as ethanol and coconut-based biodiesel.
Philippines Coastal’s operation is underpinned by US dollar-denominated take-or-pay contracts with reputable customers.
The company has been operating under a 50-year lease with Subic Bay Metropolitan Authority since 1993, with an option to extend for an additional 15 years.
The acquisition from Keppel Infrastructure Trust of Singapore and Metro Pacific Investment Corporation of the Philippines is subject to customary conditions including anti-trust clearance.
The deal is expected to close by the end of this year.
Advising I Squared on this transaction were Rippledot Capital Advisers and legal counsel from Latham & Watkins, Singapore, and Romulo in the Philippines.
This move follows I Squared’s ongoing efforts to consolidate its position in the industry, as seen by its exclusive negotiations since March to acquire a 55% stake in Rubis Terminal, aiming for full ownership.
The company acquired a 45% stake in Rubis Terminal in January 2020.
