A unit of Manila Water Co. Inc. in Boracay has signed a P650 million loan agreement with Security Bank for the firm’s capital expenditures.
Boracay Island Water Co. Inc. said the loan will be used for capital expenditures in fulfillment of its service obligations in the island of Boracay in Aklan.
This is the third loan effort by Boracay Water after it tapped two separate P500 million loans from the Philippine Water Revolving Fund, which were sourced from the United States Agency for International Development and the Japan International Cooperation Agency.
The first two loans were coursed through state-run Development Bank of the Philippines and Security Bank.
The new loan is in line with Manila Water’s efforts to meet its millenium development goals for water, including the establishment of water facilities in Boracay in response to the island’s growing tourism industry.
Manila Water realized an 8-percent increase in its first half net profits from the P2.9 billion it posted a year ago, while revenues rose by 6 percent to P8.113 billion from P7.632 billion.
Manila Water is the water subsidiary of conglomerate Ayala Corp. (AC), which has interests in banking (Bank of the Philippine Islands), telecommunications (Globe Telecom Inc.), real estate (Ayala Land Inc.), and business process outsourcing and education (LiveIt Investments), among others. AC is 50.56-percent owned by Mermac Inc., 10.52 percent by Mitsubishi Corp. and 38.92 percent by the investing public.