Manila Water signs P10-B loan for capital spending

Manila Water signs P10-B loan for capital spending

MANILA Water Co., Inc. said on Thursday that it had signed a P10-billion term loan facility with a local bank to partly fund its capital expenditure projects.

In a disclosure to the stock exchange, the east-zone water concessionaire said the 10-year term loan facility was extended by Metropolitan Bank and Trust Co.

The loan comes after Manila Water subsidiary Laguna AAA Water Corp., or Laguna Water, signed In August a P1.6-billion term loan facility with Bank of the Philippine Islands to finance its capital spending until 2025.

Laguna Water is a joint venture between the provincial government of Laguna and Manila Water Philippine Ventures, Inc. It operates in the cities of Biñan, Santa Rosa, Cabuyao, and the municipality of Pagsanjan. It also supplies Alaminos, Calamba, San Pablo, Sta. Cruz, and Victoria.

Currently, Manila Water is seeking approval for the extension of its revised concession agreement with the Metropolitan Waterworks and Sewerage System (MWSS).

In line with the extension application, Manila Water has committed to allocate P1.15 trillion for investments, primarily to ensure the continuous provision of water and wastewater services to its customers in the east zone.

Last month, the company held a public hearing for the contract extension, citing the support it could give to the government by funding an estimated expenditure of approximately P721 billion.

The MWSS is currently reviewing the application of Manila Water, along with west-zone concessionaire Maynilad Water Services, Inc.

In the third quarter, Manila Water saw its attributable net income rise by 38.1% to P2.21 billion from P1.6 billion in the same quarter last year, based on its quarterly report.

Gross revenues during the period increased by 33.9% to P7.75 billion while gross expenses slightly grew by 0.3% to P3.9 billion.

At the local bourse on Thursday, shares of Manila Water went down by 10 centavos or 0.55% to close at P18 apiece.

The water concessionaire serves the east zone network of Metro Manila, covering parts of Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several towns in Rizal province. — Sheldeen Joy Talavera