A unit of Ayala-led Manila Water Co. Inc. has borrowed as much as P833 million from the Development Bank of the Philippines (DBP) to finance its capital expenditure intended to fulfill its service obligations and expansion plans.
A disclosure to the Philippine Stock Exchange on Thursday showed that Laguna AAA Water Corp. (LAWC), a subsidiary of Manila Water, signed a Third Omnibus Loan and Security Agreement amounting to P833 million, with the DBP through the Philippine Water Revolving Fund.
The proceeds of the loan, according to Manila Water, will be used to finance the additional capital expenditures of Laguna Water to fulfill its service obligations and expansion plans in the province of Laguna.
A week ago, Laguna Water fully took over for P625 million the utility that supplies water for the entire Laguna Technopark.
Manila Water previously told the local bourse that Laguna Water signed an asset purchase agreement with Laguna Technopark Inc. (LTI) for the acquisition of the water reticulation system of Laguna Technopark.
The transaction, according to Manila Water, is for the purchase and acquisition of certain assets in order to exclusively operate the water and sewerage system in the Laguna Technopark, and to provide water and sewerage services to people within and outside the industrial park, including areas to be covered by the expansion of Laguna Technopark in the future.
Through the transaction, the Manila Water group of companies will become the exclusive water service provider of the biggest and largest international manufacturers in the Asian region, the disclosure added.