Manila Water latches on to P10-B fresh funds

Razon-led Manila Water has raised P10 billion from China Banking Corp. to help jack up its capital spending.

In a filing at the local bourse on Thursday, Manila Water said it inked a 10-year term loan deal with the bank. However, the company did not disclose which specific developments the latest round of loan agreements would support.

In December last year, the group secured two loan contracts amounting to P17 billion to support its capital expenditures (capex).

Earlier this year, its subsidiary Manila Water Asia Pacific Pte. Ltd. also sealed a $110-million debt refinancing deal with two international banks to refinance its existing debt.

Manila Water 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.

The firm also operates Laguna, Clark, Boracay and Estate Water businesses. Outside the Philippine market, Manila Water has investments in Vietnam, Thailand and Indonesia.

In November, Manila Water said it booked P10.1 billion in earnings in the January to September period following higher rate adjustments and boosted demand from consumers. The figure was a 39-percent improvement from the P7.26 billion the group recorded a year ago.

Optimistic

Revenues also jumped 19 percent to P27.5 billion from the previous P23.14 billion.

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Cash flow as measured by earnings before interest, taxes, depreciation and amortization also increased by 26 percent to P19.2 billion.

Manila Water president and chief executive officer Jocot de Dios was optimistic the group could sustain the momentum.

“When we set out on our path to recovery and growth three years ago, we knew fully well that the road ahead would not be easy,” De Dios earlier said.

“We understood that sacrifices would need to be made at the onset, so that we can establish a robust structure and adopt practices that will result in sustainable efficiencies in our operations [and] better, more reliable service to our customers,” he said.