Davao firm gets $220-m China loan
Chelsea Logistics Corp., a company owned by Davao City-based businessman Dennis Uy, obtained a $220-million bridge loan from Bank of China Ltd.
Bank of China country head Deng Jun said during the loan signing ceremony that the $220-million credit loan facility extended to CLC was a part of the initial $3-billion financing package the bank committed 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,” Deng said.
“Efficient shipping and logistics are a key component to creating a globally competitive economy. We believe that synergies between Udenna and 2GO will bring together a stronger and more efficient shipping and logistics industry for the country,” Deng said.
CLC, the logistics arm of the Udenna Group, will use the proceeds from the bridge loan for the acquisition of a 32-percent stake in integrated transport solutions provider 2Go Group Inc. through an affiliate.
CLC founder and chairman Dennis Uy said the company aimed to become a super shipping and logistics company that provides all kinds of shipping and services all islands in the country.
Uy said CLC was also open to acquiring additional stake in 2Go.
CLC, which plans an P8-billion initial public offering next month, also intends to expand organically and through other acquisitions to become the prime mover of goods and passengers in the Philippines.
CLC said the loan agreement was a vote of confidence, by one of the world’s biggest financial institutions, on the soundness of its acquisition into 2Go and the strategic importance of shipping to the economic growth of an archipelago of more than 7,000 islands.
Bank of China has over a hundred-year-old history and has built up an excellent brand image widely recognized within the industry.
Bank of China was ranked fourth among the Global 1000 Banks by the British magazine, The Banker. In 2016, the bank was designated again as a Global Systematically Important Bank, becoming the sole financial institution from emerging economies to be considered as such for six consecutive years.
Bank of China provides a comprehensive range of financial services to customers across the Chinese mainland, Hong Kong, Macau, Taiwan and 50 countries and regions across six continents.