Manila Water unit secures P1.53-B bank loan to fund Clark projects

MANILA, Philippines — Pampanga water concessionaire Clark Water Corp., a subsidiary of Manila Water Co. Inc., has secured a P1.53 billion loan with the Bank of the Philippine Islands (BPI) to fund its projects and other concession obligations.

In a disclosure to the Philippine Stock Exchange on Thursday, Clark Water said it signed a 10-year term loan facility with BPI through Manila Water Philippine Ventures, Inc. on Tuesday.

“The proceeds of the loan will be used to partially finance Clark Water’s projects and pay its service concession obligations,” the company said.

Earlier this year, Manila Water also sealed a P200-million 10-year term loan from BPI for its Bulacan subsidiary, Bulakan Water Co. Inc., to fund the development of the area’s water system and service facilities.

As of March 31, 2023, the Razon-led water company has an P85.33-billion outstanding debt, including bank borrowings and bonds.

Clark Water has been the primary water and wastewater services provider in the Clark Freeport and Economic Zone in Pampanga since 2000.

In 2014, it pegged a P3.93-billion capital investment for its remaining concession term that was extended until 2040.