A subsidiary of Razon-led Manila Water Co. Inc. has obtained a P200-million loan to expand water services in the Bulakan town of Bulacan.
In a disclosure, Manila Water said Bulakan Water Co. Inc. has inked a 10-year term loan facility with the Ayala Group’s Bank of the Philippine Islands.
“The proceeds of the loan will be used to finance the refurbishment, expansion and improvement of the service facilities and the water source and distribution system and provision of sanitation services in the service area of Bulakan Water,” it added.
Bulakan Water is a unit under Filipinas Water Holdings Corp., a consortium between Manila Water and subsidiary Manila Water Philippine Ventures Inc. (MWPVI). The latter is Manila Water’s holding company for all its domestic operating subsidiaries in Boracay, Cebu, Clark and Laguna.
Bulakan Water was created in 2019 as a tie-up with the Bulacan Water District to address the design, construction, rehabilitation, maintenance, operation, financing, expansion and management of the water supply system and sanitation facilities in the concession area.
In the nine months through September last year, Manila Water saw its net income attributable to equity holders of the parent climb by 34 percent to P4.5 billion and revenues by 8 percent to P16.5 billion.
This was attributed to higher revenues, coupled with the deferral of foreign exchange losses from foreign currency differential adjustment (FCDA) as well as reduction of provisions in line with the Supreme Court resolution of a case involving the Clean Water Act.