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.

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