Manila Water Philippine Ventures, a wholly-owned subsidiary of Manila Water Company Inc., signed a P4-billion fixed-rate term loan facility with Security Bank Corp. and Metropolitan Bank and Trust Company.
Manila Water said in a disclosure to the stock exchange the terms of the loan included an option to increase the size of the facility to a maximum of P7 billion.
Manila Water said the MWPV’s loan was the single largest capital raising activity of a subsidiary.
“The 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,” Manila Water said.
MWPV signed a memorandum of agreement with Ayala Land Inc. and its subsidiaries early this year.
Under the agreement, MWPV through its Estate Water Division, will provide water and used water services and facilities to all property developments of ALI Group.
Manila Water said that prior to the agreement, ALI Group provided in-house water and used water services in their development projects.
MWPV, apart from being an operating company, 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.
Currently under MWPV are LagunaAAA Water Corp., Boracay Island Water Company Inc., Clark Water Corp. and Cebu Manila Water Development Inc.
Manila Water currently provides water and wastewater services to over 6.2 million residents of eastern Metro Manila and Rizal province.