Metro Pacific Investments Corporation Sells its 50% Interest in Philippine Coastal Storage and Pipeline Corporation

October 2024, Manila, Philippines – Leading Philippine infrastructure firm Metro Pacific Investments Corporation (MPIC) has entered into a definitive agreement to sell its 50% stake in Philippine Coastal Storage & Pipeline Corporation (PCSPC) to an affiliate of global infrastructure investor I Squared Capital (ISQ).

In tandem, Singapore-listed Keppel Infrastructure Trust (KIT) has also entered into a definitive agreement to sell its 50% stake in PCSPC to ISQ.

The transaction values PCSPC at an enterprise value of up to US$510 million (~₱29.1 billion), subject to fulfillment of various performance milestones. MPIC intends to use its share of the proceeds to fuel the continued development of its core businesses, further reinforcing its position across key sectors of the Philippine economy.

PCSPC, located in the Subic Bay Freeport Zone, is the largest jet fuel, petroleum and sustainable fuels import terminal in the Philippines, boasting a storage capacity of over 6 million barrels. The terminal plays a vital role in ensuring the reliable entry of liquid fuel products into the country, serving the needs of major commodity providers and other strategic interests.

ISQ is an independent global infrastructure investment manager with over $40 billion in assets under management. The company focuses on a variety of sectors, including utilities, energy, digital infrastructure, transport, environmental infrastructure, and social infrastructure in North America, Europe, and high-growth economies in Asia, Australia, and South America. ISQ is a team of over 280 people, headquartered in Miami with offices in Abu Dhabi, London, Munich, New Delhi, Sao Paulo, Singapore, Sydney and Taipei. In addition to these on-the-ground investing and operations teams, ISQ also has a diverse portfolio of 86 companies in more than 70 countries.

Manuel V. Pangilinan, MPIC’s Chairman, President, and CEO, expressed his confidence in the strategic decision, noting, “The acquisition of PCSPC has been pivotal in securing safe, reliable, and environmentally responsible fuel logistics for the Filipino market. Under our stewardship, PCSPC has grown into a leader in fuel storage and logistics, with a strong commitment to safety and sustainability. The decision to divest is in line with our long-term strategy to focus on sectors where we can create the greatest value for the Philippines. With its global expertise, we are confident that I Squared Capital will take PCSPC to the next level and ensure its continued contribution to the nation’s energy landscape.”  

The transaction’s completion is subject to regulatory approvals and other customary closing conditions. Until then, MPIC, KIT, and ISQ will work closely with PCSPC’s management to ensure a seamless transition and continuity of operations.

“We are excited to acquire PCSPC, an essential infrastructure asset which plays a critical role in supporting Philippines’ growing energy requirements. We look forward to working with PCSPC’s strong management team to enhance PCSPC’s critical role in the Philippine economy and invest further in the PCSPC platform to expand into new products and areas. In addition to bio-ethanol and bio-diesel, we will focus on expanding the asset’s capabilities to handle other biofuels including sustainable aviation fuel. This acquisition aligns with our commitment to investing in essential infrastructure that fosters economic growth and long-term value creation within a sustainable model,” said Harsh Agrawal, Senior Partner at I Squared Capital.

UBS AG Singapore Branch acted as MPIC’s financial advisor for the transaction, while Rippledot Capital provided advisory services to I Squared Capital.

—————————————————

About MPIC

Metro Pacific Investments Corporation is a leading Philippine company with investments in power, toll roads, water, transportation, healthcare, real estate, and agribusiness. 

The Company seeks to create long-term value for all its stakeholders through responsible and sustainable investments that contribute to national progress and improve the quality of life in the communities it serves.

MPIC and its group of companies are making a difference in the lives of millions of Filipinos, powering commerce and households, connecting people and places, delivering clean and safe water, and making world-class healthcare available to all. 

For further information, please contact: