Singapore-listed Keppel Infrastructure Trust (KIT) announced that it has completed the sale of a 50% stake in Philippine Coastal Storage & Pipeline Corporation (PCSPC) to an affiliate of private equity firm I Squared Capital.
KIT and Metro Pacific Investments Corporation (MPIC) first announced the divestment of their combined 100% interest in PCSPC in October 2024 at an enterprise value of $460 million, factoring in net debt of $181 million.
The buyer, Coral Terminal, is an entity of Terminal PH Investments. Both Coral Terminal and Terminal PH Investments are affiliates of I Squared Capital.
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.
Since 1993, PCSPC has been operating the facility under a 50-year lease with Subic Bay Metropolitan Authority (SBMA), with a discretionary option to extend the lease by another 15 years.
Spread across nearly 160 hectares, PCSPC has 91 tanks servicing different fuel types. It has two jetties–the main jetty can handle Medium Range 1 vessels (up to 50,000 DWT) while the secondary jetty is suited to serve transhipment to other islands within the country.
The buyer, I Squared Capital, recently secured an investment commitment of $75 million from the International Finance Corporation for its ISQ Growth Markets Infrastructure Fund II.
The fund, which targets $3 billion in total commitments, seeks to support infrastructure development in certain Asia Pacific jurisdictions and select Latin American nations.
The predecessor vehicle, ISQ Growth Markets Infrastructure Fund, raised about $2.6 billion in 2021.
I Squared Capital has invested in a diverse global portfolio of 89 companies operating across more than 70 countries since its inception.
Its investments in Asia Pacific include AG&P Pratham, Amplus Solar, Asia Environmental, BDx, Berde Renewables, Clean Energy Fuels Australia, Cube Highways, Formera Senior Care, HEXA Renewables, and unifiber by Asianet, among others.
