BDO Supports NAIA Modernization to Enhance Air Mobility and Travel Experience

Understanding that robust infrastructure is essential for driving national development, BDO Unibank Inc. (BDO) has consistently backed initiatives that promote sustainable growth and enhance key services.

A prime example of this commitment is BDO’s active involvement in the modernization of Ninoy Aquino International Airport (NAIA), the Philippines' busiest airport. By supporting this transformative project, BDO is playing a crucial role in improving air connectivity and creating economic opportunities for the country.

Facilitated by BDO’s Institutional Banking Group and BDO Capital & Investment Corporation (BDO Capital), BDO played a pivotal role in securing PHP 80 billion (US$ 1.42 billion) in funding for the New NAIA Infrastructure Corporation (NNIC). This consortium, entrusted with the rehabilitation and modernization of NAIA, is led by San Miguel Holdings Corporation (SMC), in collaboration with RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corporation (IIAC). Together, they aim to drastically improve the airport's efficiency and passenger experience, setting a new standard for air travel in the Philippines.

SMC, a leader in the Philippine infrastructure sector, brings a wealth of experience and contributes significantly to the nation’s economy, accounting for approximately 6% of the country’s GDP. Incheon International Airport Corporation, a renowned global player and operator of one of Asia’s busiest airports, lends its expertise in airport management, cutting-edge technology, and operational efficiency. Their involvement demonstrates the growing confidence in the Philippines' economic potential and infrastructure projects.

BDO’s quick response in mobilizing substantial capital underscores its leadership in large-scale infrastructure financing. The deal was expertly structured by BDO Capital, in close collaboration with other investment banks, navigating complex market dynamics to ensure a seamless funding process for NNIC.

“BDO has always been a strong and reliable partner in infrastructure development,” said Eduardo V. Francisco, President of BDO Capital. “The NAIA modernization project will not only stimulate economic growth but also enhance the Philippines’ air mobility, positioning the country as a key regional hub.”

Charles M. Rodriguez, Executive Vice President and Head of BDO’s Institutional Banking Group, emphasized the bank's pride in supporting transformative projects. “We are honored to play a part in the modernization of NAIA, which will significantly improve air travel efficiency and accessibility for millions of Filipinos.”

According to Angelito Alvarez, General Manager of NNIC, “BDO’s financial expertise has been crucial in ensuring the success of this transformation. Their unwavering support will help elevate NAIA to a world-class standard, improving connectivity and providing a seamless experience for travelers."

The NAIA modernization project, a key priority of the current administration, is set to be awarded by the end of 2024. Understanding the fiscal challenges faced by the government, BDO continues to play an instrumental role in fostering private sector collaboration to ensure critical infrastructure projects remain on track. As the largest Public-Private Partnership (PPP) under this administration, the NAIA upgrade is expected to generate substantial revenue, create jobs, boost tourism, and attract foreign investment.

This development is part of a broader vision to upgrade the country’s transportation infrastructure, alongside complementary projects like the Metro Manila Subway and the New Manila International Airport in Bulacan. Together, these initiatives promise to create a more integrated and efficient transportation network, which will not only support economic growth but also reinforce the Philippines' position in the global market.

Through its continued support of NAIA’s modernization, BDO is not just helping to enhance air mobility but also actively participating in shaping the future of the nation’s infrastructure. The successful completion of these projects will bring lasting benefits to businesses, communities, and millions of Filipinos who rely on better connectivity and modernized infrastructure for their everyday needs.