MANILA Water Company, Inc. (Manila Water), through its wholly owned subsidiary Manila Water Philippine Ventures, Inc. (MWPV), signed on Wednesday a P4 billion loan deal with Security Bank Corporation and Metropolitan Bank and Trust Company.
The company told the Philippine Stock Exchange (PSE) on Wednesday that MWPV’s maiden loan of P4 billion is the single largest capital raising activity of a Manila Water subsidiary.
The fixed-rate, 15-year loan carries an option to increase the size of the facility to P7 billion. The loan was arranged by SB Capital and First Metro Investment Corporation.
The statement did not provide details on the interest rate associated with the loan facility.
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.
On January 12, 2016, MWPV signed a Memorandum of Agreement (MOA) with Ayala Land Inc. and its subsidiaries (ALI Group) to provide water and used water services and facilities to their customers and clients.
Under the MOA, MWPV, through its Estate Water Division, will provide the water and used water services and facilities to all property developments of ALI Group nationwide. Previously, ALI Group provided in-house water and used water services in their development projects.
Apart from being an operating company, MWPV also serves as Manila Water’s holding company for its local projects.
Building on its success in the East Zone, Manila Water organized MWPV to explore potential water and used water projects in key metropolitan areas in the Philippines.
To date, Manila Water, through MWPV, operates concession projects in Laguna, Boracay and Clark Freeport Zone and a bulk water project in the province of Cebu.