Manila Water gets BDO loan for P5B

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Ayala-led Manila Water Company (MWC) has secured a five-year P5 billion revolving term loan facility with BDO Unibank Inc. to bankroll additional projects.

In a regulatory filing to the Philippine Stock Exchange (PSE), the water concessionaire said the agreement was signed Wednesday, 13 November.

According to Jeric Sevilla, MWC head of corporate communications, the general-purpose loan will be used to finance the company’s capital expenditure projects.

“The loan will support our capital expenditure programs and our general corporate requirements, as well as to refinance existing concessionaire loans,” Sevilla told the Daily Tribune.

“BDO is the largest bank in the country and has provided Manila Water with competitive rates.  This is also an expansion of our business relationship with BDO,” Sevilla added.

As of end-September, MWC’s net income fell 11 percent to P4.4 billion, dampened by the impact of a water supply shortage that hit its concession area in Metro Manila’s east zone early this year.

“Despite these challenges, continued efforts towards operating efficiency in the East Zone and the increased contribution of the domestic subsidiaries have made the business more resilient,” the concessionaire said in a statement.

As a result, core net income stood at P5.8 billion for the period, an improvement of over 10 percent from last year, it said.

Manila Water, however, did not release figures for the third quarter.

Recently, MWC and Maynilad were placed in hot water after the Supreme Court imposed huge fines due to their failure to implement sewerage and water storage projects.

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