Manila Water Company Inc has approved investments of up to $13 million in its units in the Philippines, Singapore, and Vietnam.
Manila Water made the disclosure to the stock exchange on Monday following the signing of a ¥40 billion (P15.4 million) seven-year loan term facility with three Japan-based banks last October 1 in Hong Kong.
It was noted as the single largest capital raising activity of Manila Water following the approval of the Rate Rebasing Business Plan in April 2015. Manila Water secured the loan with The Bank of Tokyo-Mitsubishi UFJ Ltd (BTMU), Mizuho Bank Ltd, and Sumitomo Mitsui Banking Corporation or SMBC. The facility shall be used to partly finance Manila Water’s capital expenditures which include used water projects such as new sewerage treatment plants and rehabilitation of sewer lines.
Manila Water informed the stock exchange on Monday that its committee approved the additional investment of $9 million (P418 million) in its wholly-owned domestic subsidiary, the Manila Water Philippine Venture Inc (MWPV) which shall be used to fund the latter’s operations.
Manila Water’s committee likewise appointed the additional investment of $4.26 million in its wholly-owned Singapore subsidiary the Manila Water Asia Pacific Pte Ltd (MWAP).
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“The additional equity infusion in MWAP shall be used to fund further investments in Vietnam,” Manila Water said in its statement.
Manila Water currently serves over 6.3 million population in key cities within Metro Manila such as Quezon City, Manila, Marikina, Pasig, San Juan, Mandaluyong, Pateros, Makati, Taguig, and Rizal.
MWAP, established in 2010, serves as Manila Water’s regional headquarters in Singapore tasked to be holding investments in various project companies in Southeast Asia.
For the last three years, Manila Water has incorporated three more Singapore entities, namely, Manila Water South Asia Holdings Pte Ltd, Thu Duc Water Holdings Pte Ltd, and Kenh Dong Water Holdings Pte Ltd.
MWAP is 100 per cent owned by Manila Water while MWSAH, TDWH and KDWH are all wholly-owned by MWAP.
The Ayala-led water firm also owns 31.47 per cent of the outstanding capital stock of Saigon Water Infrastructure Corporate which is the planned vehicle for accomplishing water and used water projects in Vietnam.
Manila Water is currently engaged in the development of a proposed non-revenue water reduction project for Yangon City in Mayanmar. It is part of the memorandum of understanding that the company, together with Mitsubishi Corp, signed with the Yangon City Development Committee or YCDC. It is an administrative body of the city government in Yangon in charge of the water, infrastructure, business licenses and city property management, among others.
Only last September 30, Ronie Lim, who is the head of Manila Water’s representative office in Vietnam, has taken charge of being the deputy CEO of Saigon Water.
Manila Water’s last trading price increased 2 per cent or P0.450 to close at P22.95.