Maynilad to raise an additional P6B later this year

MANILA, Philippines — Maynilad Water Services Inc. is exploring additional avenues to raise P6 billion more, which would complete its capital investment fund of P31 billion for this year

“I think that [raising P6 billion] would be our fundraising activity for the balance of the year,” Maynilad chief finance officer Ricardo delos Reyes said in a media briefing on Friday.

Maynilad, which holds the West Zone concession with the Metropolitan Waterworks and Sewerage System (MWSS), has already undertaken earlier fundraising activities to bankroll its capital expenditure program.

One of these is the sale of blue bonds, through which P12 billion is being offered to investors. The company earlier said they intended to issue P15 billion—or P3 billion more—in case of oversubscription.

Blue bonds

Earlier this week, Maynilad President and CEO Ramoncito Fernandez said the banks that the company engaged for the blue bond informed them that the offering was indeed “oversubscribed” and expressed confidence in “beating the P15 billion.”

Fernandez had said the blue bonds, a first of its kind in the Philippines, are “a unique investment offering” that piqued the interest of investors.

READ: Maynilad preps for mandated IPO slated after 2025 polls

Delos Reyes said the securities offer period lasts until July 2 while the listing date on the Philippine Dealing and Exchange Corp. is targeted to be completed on July 9.

Anticipated proceeds from the transaction are earmarked for Maynilad’s sustainable water and wastewater management projects.

Also, Maynilad secured a P10-billion loan from Ty family-led Metropolitan Bank & Trust Co., intended to support efforts to improve the concessionaire’s services.

The 10-year loan that matures in 2034 would place Maynilad “in a better position to pursue our capital expenditure program that will further enhance water services for our over 10.3 million customers,” Maynilad chief operating officer Randolph Estrellado said earlier.

P31-B capex

Maynilad had announced a capex program of more than P31 billion for water and wastewater projects—the largest capital investment of the company since its reprivatization in 1997.

READ: Maynilad sees raising more than P12B from ‘blue bonds’

Of that amount, P11.4 billion was earmarked for wastewater management projects, including the construction of new sewage treatment plants and the laying of new sewer lines.

Also, P8.72 billion would go to projects that would tap alternative raw water sources, and P6.27 billion was set aside for the upgrade and construction of key facilities such as pumping stations, water reservoirs, and primary lines.

Meanwhile, Maynilad plans to spend more than P4 billion to reduce non-revenue water or water that was treated and lost in its system due to leaks and/or pilferage. —JORDEENE B. LAGARE