MANILA, Philippines – The infrastructure unit of San Miguel Corporation (SMC), which is building the Metro Rail Transit Line 7 (MRT7), secured a P100-billion syndicated loan deal with a consortium of Philippine banks and a state insurer.

SMC, on Tuesday, June 27, said it closed an agreement with BDO Unibank, Philippine National Bank, Bank of Commerce, Security Bank, and the Government Service Insurance System (GSIS), to speed up the construction of the MRT7, which is at 61.9% completion as of June.

Lead arrangers and bookrunners for the transaction are BDO Capital and Investment Corporation, PNB Capital and Investment Corporation, SB Capital Investment Corporation, and BankCom-Investment Banking Group. Law firms of Picazo Buyco Tan Fider & Santos and SyCip Salazar Hernandez & Gatmaitan advised the banks and SMC, respectively, for the deal.

“We are happy to have achieved this milestone. It reflects the confidence that our partner banks have in the government’s vision for progress, and our ability to execute on vital projects that are critical to the country’s social and economic development and growth,” SMC president and chief executive officer Ramon Ang said.

GSIS president and general manager Jose Arnulfo Veloso said their involvement with the funding is “aligned with the GSIS’ vision of actively contributing to nation-building” and in “easing passenger transportation challenges and reducing traffic congestion in Metro Manila.” 

The MRT7 project will have 14 stations, including the Quezon-North Avenue Joint Station, Quezon Memorial Circle, University Avenue, Tandang Sora, Don Antonio, Batasan, Manggahan, Doña Carmen, Regalado, Mindanao Avenue, Quirino, Sacred Heart, Tala, and San Jose del Monte.

The first batch of MRT7 train cars were delivered to the Philippines from South Korea in 2021.

Ang said the railway line is on track to start operations by 2025.

Construction of the MRT7 began in April 2016 but its target opening has been pushed back multiple times. – Rappler.com