Maynilad sets rates for P15 billion blue bonds

MANILA, Philippines — West Zone concessionaire Maynilad Water Services Inc. has set the interest rates for its P15-billion maiden blue bond issuance.

The company is set to offer P12-billion fixed-rate blue bonds with an oversubscription option of up to P3 billion, with tenors of five years and/or 10 years.

The five-year fixed rate bonds or the Series A blue bonds would yield 6.7092 percent while the 10-year debt paper or the Series B blue bonds would have an interest rate of 7.093 percent.

The water utility firm would offer the blue bonds from July 1 to 5 while the issuance and listing of the debt papers on the Philippine Dealing and Exchange Corp. would be on July 12.

The firm received last Thursday the permit to sell the blue bonds from the Securities and Exchange Commission (SEC).

The company’s forthcoming bond issuance has been granted a credit grade of PRS Aaa with a stable outlook by the Philippine Rating Services Corp.

The proceeds from the blue bonds will form part of Maynilad’s record P31 billion capital expenditures for this year, financing eligible blue projects and/or blue activities under SEC Memorandum Circular 15 Series of 2023.

The company expects the net proceeds from the bond offering to be about P11.9 billion of the base offer or about P14.8 billion if the oversubscription option is fully exercised.

The proceeds of the blue bonds will be used to bankroll 13 identified projects, according to the company’s prospectus.

“Our maiden offering allows us to introduce ourselves as a public investment opportunity,” Maynilad chief financial officer Ricardo de los Reyes said in a press briefing earlier this month.

BPI Capital Corp. was tapped as the sole issue manager for Maynilad’s bond offer.

BPI Capital will also act as joint lead underwriter and joint bookrunner, together with BDO Capital & Investment Corp., First Metro Investment Corp. and East West Banking Corp.