SEC okays Manila Water's P4-B fixed-rate bond issue

The Securities and Exchange Commission has approved the plan of Ayala-led utility firm Manila Water Co. to issue up to P4 billion worth of five-year, fixed-rate bonds.

The company has applied for the registration of P3 billion worth of bonds with an overallotment option of P1 billion to cover any possible excess demand.

The bonds will have a fixed interest rate and will be redeemed at par or 100 percent of face value when they mature in 2013. 

Proceeds from the bond offering will be used by Manila Water to expand its distribution network as part of efforts to improve the delivery of water and waste water services.

For this year, Manila Water expects to spend capital expenditures inclusive of concession fees, amounting to roughly P6.4 billion. 

Manila Water’s continued focus on the aggressive implementation of its capital investment plan has helped it expand its customer base and service coverage, improve operating efficiencies and manage its risks.

To further expand sewerage coverage and help in the protection and revitalization of the Marikina and Pasig River systems, Manila Water has also laid out the groundwork for a number of new sewerage treatment plants.

The company has brought down its level of non-revenue water by 43 percentage points from a high of 63 percent 10 years ago.

Recently, Manila Water announced that it won a contract in Vietnam for the management of non-revenue water with the Saigon Water Co.

With 10 years of a solid track record in the operation and maintenance of water and wastewater systems, Manila Water plans to replicate its success within the region, particularly in India, China and Southeast Asia.

In Tamil Nadu State, India, Manila Water has an ongoing management contract with Mahindra Water Utilities Ltd. in the operations of the 185 million liter per day capacity water supply and sewerage system in Tirupur.