Metro Pacific Sells Stake In Fuel Terminal

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).

MPIC's decision to divest in PCSPC aligns with our long-term strategy to focus on sectors where we can create the greatest value for the Philippines. I Photo: Philippine Coastal Storage & Pipeline Corporation

Simultaneously, 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 (approximately ₱29.1 billion), subject to the fulfillment of various performance milestones.

MPIC intends to use its share of the proceeds to further develop its core businesses, 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, with a storage capacity of over 6 million barrels.

The terminal plays a crucial 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 across North America, Europe, and high-growth economies in Asia, Australia, and South America.

Headquartered in Miami, ISQ has a global presence with 289 employees and offices in Abu Dhabi, London, Munich, New Delhi, São Paulo, Singapore, Sydney, and Taipei. With on-the-ground investing and operations teams, ISQ also manages a diverse portfolio of 86 companies in more than 70 countries.

Manuel V. Pangilinan, MPIC’s Chairman, President, and CEO, expressed 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 aligns 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 that plays a critical role in supporting the Philippines' growing energy requirements. We look forward to working with PCSPC’s strong management team to enhance its critical role in the Philippine economy and invest further in the PCSPC platform to expand into new products and areas.

In addition to bioethanol and biodiesel, 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.