CHELSEA Logistics Corp. (CLC) signed a $220-million bridge loan agreement with the Bank of China Ltd. on Thursday as it positions itself to become a major player in the country’s logistics industry.
CLC founder and Chairman Dennis Uy said CLC will earmark proceeds from the bridge loan for its acquisition of a 28-percent beneficial interest in publicly listed transport solutions provider 2Go Group, Inc. through a subsidiary.
The loan is part of Bank of China’s $3-billion financing package commitment made during the state visit of President Rodrigo Duterte to China in October last year.
“We look forward to investing more in the development of infrastructure and other strategically important industries in the Philippines to further unlock the potential of the economy,” Bank of China country head Deng Jun said during the signing ceremony held at Makati Shangri-la Hotel on Thursday.
Deng however said he could not specifically disclose which other projects and companies would benefit from the committed loan amount.
Uy said that CLC aspires “to be a super shipping logistics company” offering end-to-end solutions, from manufacturing to the consumers.
CLC earlier announced plans to raise P8 billion from an initial public offering set for July this year, under which it will offer 546.6 million common shares at a maximum price of P14.63 per share.
CLC acquired the outstanding capital stock of Udenna Investments BV (UIBV) in March this year. Udenna has economic interests in KGLI-NM Holdings Inc., which in turn has direct ownership of Negros Navigation Co. Inc., the controlling shareholder in 2GO.
Uy said CLC also wants to modernize and increase its fleet depending on market demand. CLC reported it had 34 vessels as of the end of 2016.