MANILA – The International Finance Corp. (IFC) has invested $100 million as a cornerstone investor in the initial public offering (IPO) of Maynilad Water Services Inc., the largest water concession operator in the Philippines and Southeast Asia.
The investment aims to improve access to water and wastewater services in the West Zone of Metro Manila and boost capital markets for water utilities in emerging markets.
Shares in Maynilad, the operator serving the largest population within a single concession area, began trading on the Philippine Stock Exchange on Friday.
Proceeds from the IPO will fund Maynilad’s capital expenditures and general corporate purposes. A portion of the funding is earmarked for expanding wastewater service coverage, which the utility expects to reach 100 percent by the end of 2026.
The expansion is anticipated to improve public health, sanitation, and the overall well-being of the communities served by reducing waterborne diseases.
“IFC is pleased to join Maynilad’s IPO as a cornerstone investor, supporting the company’s goal of reaching full wastewater service coverage in the years ahead,” said IFC country manager for the Philippines Amena Arif.
“This investment reflects our focus on enhancing services for the Filipino population, while also highlighting IFC’s ongoing efforts to bolster capital market activity in the country,” said Arif.
The IFC’s support will also provide Maynilad with access to its Utilities for Climate (U4C) network, offering global best practices and peer learning for climate-smart water service delivery.
The IFC said it would also help Maynilad strengthen its environmental and social practices, aligning them with IFC’s Performance Standards, and work on a framework to promote greater participation of women in its workforce.
The IPO fulfills a term of Maynilad’s legislative franchise and enables it to pursue long-term expansion plans.
“This marks the beginning of a new chapter for Maynilad,” said Maynilad president and chief executive Ramoncito Fernandez.
“The investments we have received signal confidence in our vision and plans to strengthen our positioning as a pure-play sustainability company, one that aims to continue bringing positive impact and value to our West Zone concession and beyond,” he said.
Access to equity capital markets can help water utilities in emerging markets fund service expansion, improve efficiency, and reduce reliance on public finances to meet the growing demands of the population.
