Manila Water unit gets P4-B loan

MANILA, Philippines – Manila Water Philippines Ventures Inc. (MWPV), a subsidiary of Manila Water Co., has inked a P4-billion fixed rate term loan facility with two local banks.

In a disclosure to the local bourse, the East Zone concessionaire said it has the option to increase the loan facility up to P7 billion.

“The proceeds of the loan will be used to partly finance the company’s capital expenditures related to its estate water business, future acquisitions and other general corporate requirements,” the company said in a statement.

The Ayala-led subsidiary signed the loan with Security Bank Corp. and Metropolitan Bank and Trust Co. and carries a tenor of 15 years.

So far, the maiden loan of MWPV is the single largest capital raising activity of a subsidiary of Manila Water.

Last January, MWPV and property powerhouse Ayala Land Inc. inked a memorandum of agreement to leverage their respective expertise to provide improved services and facilities to their customers and clients.

Under the agreement, MWPV will provide the water and used water services and facilities to all property development of the Ayala Group, which previously provides in-house water services to its projects.

MWPV serves as Manila Water’s holding company for its local projects and operates concession projects in Laguna, Boracay, Clark Freeport Zone and a bulk water project in Cebu.

Just recently, Manila Water made its first investment in Mindanao through a 10-year performance-based non-revenue water reduction project with the Zamboanga City Water District and a 15-year bulk water supply project in Davao del Norte.

Meanwhile, the water company reported a three percent increase in net income in the first half of the year to P3.14 billion owing to higher revenues.

The company’s revenues went up four percent to P8.77 billion from P8.45 billion in the same period last year.

Manila Water caters to the East Zone, which encompasses parts of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, most parts of Quezon City, portions of Manila, as well as several towns in Rizal.

It operates three other subsidiaries, the Laguna AAA Water Corp., Boracay Island Water Corp., and Clark Water Corp.

The company is a joint venture among Ayala Corp., United Utilities Pacific Holdings, BV and Mitsubishi Corp. until it became a subsidiary of Ayala Corp. in 2010.