Philippines: Maynilad Water inks $217.9m debt deal with JICA, Japanese banks

Visual from Maynilad

Maynilad Water Services Inc, a water and wastewater services provider, has signed a $217.9 million (P10.8 billion) loan agreement with Japan International Cooperation Agency (JICA) and three leading Japanese commercial banks.

This is the first time that JICA is lending directly to a private corporation in the Philippines and to the water sector.

Maynilad will use the funds for its Non-Revenue Water (NRW) and water expansion capital expenditure projects over the next four years.

The three Japanese lenders that backed Maynilad with P3.6 billion in loans were The Bank of Tokyo-Mitsubishi UFJ (BTMU), Mizuho Bank Ltd, and Sumitomo Mitsui Banking Corp (SMBC).

Maynilad aims to use JICA’s P7.2 billion loan to finance up to 70 per cent of its NRW-related capex projects from 2017 to 2020.

“Aside from improving operational and network efficiency, the capex programs will allow Maynilad to meet its service obligations and achieve sustainable growth,” Maynilad said in a statement.

As for the loan from the Japanese commercial banks, the water services provider will use them for water expansion and other support projects from 2017 to 2019.

“With this loan, we are in a better position not only to improve and expand water coverage in the West Zone, but also to ensure long-term water security for future generations,” said Maynilad president and CEO Ramoncito Fernandez.

Maynilad is owned and managed by Maynilad Water Holdings Company Inc, a joint venture between Metro Pacific Investments Corp (MPIC), DMCI Holdings Inc, and Marubeni Corp.

Maynilad is the largest private water concessionaire in the Philippines in terms of customer base. It is the agent and contractor of the MWSS for the West Zone of the Greater Manila Area, which comprises some portions in the cities of Manila, Quezon City, Makati, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon cities. It also covers Cavite province in the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario.

Also Read:

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.