RCBC leads financing for infrastructure projects

MANILA, Philippines — Yuchengco-led Rizal Commercial Banking Corp. (RCBC) continues to take the lead in financing key infrastructure projects nationwide as the national government ramps up massive infrastructure spending under the Build Build Build program.

The country’s 10th largest bank in terms of assets is the biggest lender to the P19 billion project finance facility of a unit of infrastructure giant Metro Pacific Investments Corp. (MPIC).

RCBC deputy chief executive officer Eugene Acevedo said the proceeds of the 15-year term loan facility extended to Cebu Cordova Link Expressway Corp. (CCLEC), an indirect subsidiary of MPIC,  would partially finance the first public-private partnership (PPP) outside Metro Manila.

This is the first bridge venture of MPIC that controls Metro Pacific Tollways Corp. (MPTC). The loan facility was signed late last year.

“We are excited about this opportunity to be involved in a financially viable project that will bring significant impact in the economy of Cebu,” Acevedo said.

Aside from RCBC, other banks include the Sy family’s BDO Unibank Inc., Aboitiz-led UnionBank of the Philippines Inc., Ayala-led Bank of the Philippine Islands, Security Bank Corp. and state-owned Land Bank of the Philippines.

The 8.5 kilometer Cebu-Cordova Link Expressway, estimated to cost P26 billion, aims to connect mainland Cebu and the island of Mactan via Cebu City and Cordova.

It is envisioned be an iconic infrastructure project under a PPP arrangement with the local governments of Cebu City and Cordova municipality.