MANILA, Philippines — West Zone concessionaire Maynilad Water Services Inc. is planning to offer up to P15 billion in special fixed-rate bonds this coming May.
In a statement on Wednesday, Maynilad said it filed a registration with the Securities and Exchange Commission (SEC) for the issuance of the so-called blue bonds—tagged as such since proceeds would be used to finance sustainable water and wastewater management projects.
The offer was set at P12 billion, but the company is planning to sell P3 billion worth of bonds more should there be an oversubscription.
The bonds, planned to have tenors of five years and/or 10 years, would be offered from May 27 to May 31, and listed on the Philippine Dealing and Exchange Corp. on June 7.
READ: SEC: PH issuers explore blue bond offerings
“These projects are aligned with the SEC’s Guidelines on Eligible Blue Projects and Activities for the Issuance of Blue Bonds in the Philippines,” Maynilad said. The guidelines were issued to spur investments in sustainability and climate change initiatives.
Highest credit rating
Local debt watchdog Philippine Ratings Services Corp. (PhilRatings) gave the planned bond issuance the highest credit rating of PRS Aaa with a stable outlook.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. A stable outlook means the rating is likely to remain unchanged in the next 12 months.
PhilRatings assigned the credit rating to Maynilad based on the following considerations: the company’s exclusive right to provide water and wastewater services in its concession area and its proven capacity to operate in and navigate the challenges of a highly regulated industry.
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It also accounted the firm’s experienced management and strong support from parent company Metro Pacific Investments Corp., its sustained profitability and sufficient debt coverage and its ability to manage liquidity levels, supported by continuous cash collections from customers.
“This inaugural public issuance marks a significant milestone not only for Maynilad but also for the country, as it is the first [Philippine peso]-denominated fixed-rate blue bond to be registered with the SEC,” Maynilad president and CEO Ramoncito Fernandez said.
“The proceeds from this issuance will propel crucial capital expenditure projects that will enhance water and wastewater services for communities across our West Zone,” he added. INQ