MANILA, Philippines — A subsidiary of utility firm Manila Water Co. Inc. has obtained a $110-million loan from two international banks to refinance its existing debt.
In a stock exchange filing on Monday, Manila Water said the three-year term loan facility of Manila Water Asia Pacific Pte. Ltd. (MWAP) had been sealed with Mizuho Bank – Singapore and ING NV Singapore.
Established in 2010, MWAP is the holding company of Manila Water for international ventures. It currently has affiliate companies in Vietnam, Thailand and Indonesia.
This is the first loan tapped by the Razon-led concessionaire this year.
In December 2023, Manila Water signed a P10-billion loan agreement with Metropolitan Bank and Trust Co. to partially fund capital expenditure (capex) projects.
READ: Manila Water secures P10-B Metrobank loan
In 2022, the company announced that it would spend P105 billion until 2027 for its water and wastewater projects.
Capital expenditure
It also closed a P1.6-billion loan with Ayala-led Bank of the Philippine Islands in August 2023 to partly finance its capex until 2025.
In 2023, Manila Water saw its earnings contract by 6 percent to P5.6 billion despite improved revenues.
This was due to a P4.1-billion impairment provision, or a permanent reduction in the value of an asset, in Eastern Water Resources Development and Management Co. Ltd. (East Water) that was recognized “to reflect current market conditions and outlook.”
Manila Water acquired an 18.72-percent stake in East Water, a publicly listed water supply and distribution company in Thailand, back in 2018. —Meg J. Adonis INQ