ITS Secures Green Loans with ING as Arranger and Sustainability Coordinator

Rhea-AI Summary

ING Capital has announced the closing of $424 million in credit facilities for International Transportation Service (ITS) at the Port of Long Beach. The facilities, comprising $224 million in taxable and $200 million in tax-exempt financing, will support a major terminal redevelopment project.

The redevelopment includes a $300 million slip-fill project that will increase yard capacity by 50%, enabling accommodation of two 18,000 TEU vessels simultaneously. Additionally, $100 million has been designated as Green Loans specifically for procuring electrified terminal equipment.

This initiative aligns with the California Clean Air Action Plan (CAAP) targets and aims to achieve net-zero emissions through key decarbonization strategies, including electrification and adoption of zero-tailpipe emissions equipment. ITS, owned by a Macquarie Asset Management managed vehicle, is making these strategic investments under the guidance of the City of Long Beach to enhance marine terminal infrastructure while promoting environmental sustainability.

NEW YORK, Feb. 6, 2025 /PRNewswire/ -- ING Capital LLC today announced the closing of $424 million in credit facilities for International Transportation Service (ITS), to support a significant terminal redevelopment that will expand yard capacity by 50% and electrify its current fleet. ITS is a container terminal operator owned by a Macquarie Asset Management (MAM) managed vehicle at the Port of Long Beach within the San Pedro Bay complex in Southern California.

ING Capital LLC acted as the Administrative Agent, Joint Lead Arranger, Sole Taxable Debt Bookrunner, and Joint Sustainability Coordinator for ITS' $424 million credit facilities. These facilities comprise $224 million in taxable and $200 million in tax-exempt financing.

ITS' terminal redevelopment plan includes a slip-fill project with an estimated capex spend of ~$300 million and the planned expansion will increase yard capacity, to accommodate up to two 18,000 Twenty-Foot Equivalent Unit (TEU) vessels simultaneously. As part of this redevelopment, ITS will electrify its current terminal fleet to meet the California Clean Air Action Plan (CAAP) targets.

Under the guidance and support of the City of Long Beach, ITS is making strategic investments in critical decarbonization initiatives for port and terminal operators, with the goal of achieving net-zero emissions. To facilitate these initiatives, up to $100 million of the credit facilities have been designated as Green Loans, specifically aimed at procuring electrified terminal equipment. These efforts are in alignment with parallel initiatives by the Port of Long Beach and other regional terminal operators. Key decarbonization levers include electrification and the adoption of other zero-tailpipe emissions equipment (such as hydrogen), followed by the procurement of clean and renewable energy.

"Our partnership with ING and the other lenders represents a significant milestone in our strategic mission to enhance marine terminal infrastructure across the Americas," said Mike Dyadyuk, Managing Director at MAM. "This financing is expected to expedite ITS's ability to meet the CAAP objectives, along with delivering operational efficiencies."

"ING is proud to support ITS, a forward visioned terminal operator, with their ambitious journey towards net-zero operations. Through our port market expertise we structured the financing as Green Loans, allowing the acceleration of investments in zero-tailpipe emissions technology," said Marta Bede, Managing Director, Infrastructure, Americas, ING.

"This partnership underscores our commitment to financing sustainable initiatives that support reduced negative environmental impact, while supporting capacity expansions that scale essential decarbonization catalysts for achieving net-zero," added Suleyman Kilci, Vice President, Sustainable Solutions Group, Americas, ING.

To learn more about ITS and its operations, visit https://www.itslb.com/.

About International Transportation Service

Owned by a MAM-managed fund, ITS is a container terminal operator at the Port of Long Beach within the San Pedro Bay complex in Southern California. ITS has been a US West Coast gateway operation since 1971.

About Macquarie Asset Management

Macquarie Asset Management is a global asset manager, integrated across public and private markets. Trusted by institutions, governments, foundations and individuals to manage approximately $US633.7 billion in assets, we provide a diverse range of investment solutions including real assets, real estate, credit and equities & multi-asset. 

Macquarie Asset Management is part of Macquarie Group, a diversified financial group providing clients with asset management, finance, banking, advisory, and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie Group employs over 20,000 people in 34 markets and is listed on the Australian Securities Exchange. 

All figures as at 30 September 2024. 

About ING Capital LLC

ING Capital LLC is a financial services firm offering a full array of wholesale financial lending products and advisory services to its corporate and institutional clients. ING Capital LLC is an indirect U.S. subsidiary of ING Bank NV, part of ING Groep NV (NYSE: ING), a global financial institution with a strong European base. The purpose of ING Bank is empowering people to stay a step ahead in life and in business. ING Bank's more than 53,000 employees offer retail and wholesale banking services to customers in over 40 countries.

Sustainability is an integral part of ING's strategy, evidenced by ING's leading position in sector benchmarks. ING's Environmental, Social and Governance (ESG) rating by MSCI was affirmed 'AA' in July 2023. As of December 2023, Sustainalytics considers ING's management of ESG material risk to be 'strong'. ING Group shares are also included in major sustainability and ESG index products of leading providers Euronext, STOXX, Morningstar and FTSE Russell.

Please note that neither ING Groep NV nor ING Bank NV have a banking license in the U.S. and are therefore not permitted to conduct banking activities in the U.S. 

Contact Information
Michael Constantine
ING Americas
(646) 424-7053
Michael.constantine@ing.com

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SOURCE ING Capital LLC

FAQ

What is the total value of ING's credit facilities for ITS's terminal redevelopment?

ING Capital closed $424 million in credit facilities, consisting of $224 million in taxable and $200 million in tax-exempt financing.

How much of ING's credit facility is designated as Green Loans for ITS?

Up to $100 million of the credit facilities have been designated as Green Loans, specifically for procuring electrified terminal equipment.

What capacity increase will ITS achieve through this redevelopment project?

The terminal redevelopment will expand yard capacity by 50%, allowing accommodation of up to two 18,000 TEU vessels simultaneously.

How is ITS planning to achieve net-zero emissions with ING's financing?

ITS plans to achieve net-zero emissions through electrification of its current terminal fleet, adoption of zero-tailpipe emissions equipment, and procurement of clean and renewable energy.

What is the estimated capital expenditure for ITS's slip-fill project?

The slip-fill project has an estimated capital expenditure (capex) of approximately $300 million.