Maynilad signs P10.8 billion loan with JICA, three Japanese banks
Maynilad Water Services, Inc. (Maynilad) recently signed a P10.8-billion loan agreement with Japan International Cooperation Agency (JICA) and three of Japan’s largest private commercial banks?namely, The Bank of Tokyo-Mitsubishi UFJ (BTMU), Mizuho Bank Ltd. (Mizuho), and Sumitomo Mitsui Banking Corporation (SMBC)?to fund non-revenue water and water expansion capital expenditure projects for the next four years.
This was announced Tuesday by DMCI Holdings at the Philippine Stock Exchange Tuesday.
Aside from improving operational and network efficiency, the Capex programs will allow Maynilad to meet its service obligations and achieve sustainable growth.
The credit agreement with JICA will be denominated both in Japanese yen and Philippine peso, the local currency portion which will reduce Maynilad’s foreign exchange risk.
This is the first time that JICA lends directly to a private corporation in the Philippines and to the water sector, DMCI said.
The loan will be comprised of three facilities: (1) Japanese yen facility and (2) Philippine peso facility (collectively P7.2 billion) from JICA, which will be used to finance up to 70 percent of Maynilad’s non water relatedCapex projects from 2017 to 2020; and (3) Japanese yen facility (P3.6 billion) from the Japanese commerical banks, which will be used to fund Maynilad capital expenditure for water expansion and other support projects from 2017 to 2019.
The agreement was recently signed in Tokyo, Japan, by JICA President Dr. Shinichi Kitaoka, Maynilad President and CEO Ramoncito Fernandez, and Maynilad Chief Operating Officer Randolph Estrellado.
Also present during the signing were Teiji Teramoto (Managing Executive Officer, Global Corporate Unit of Bank of Tokyo Mitsubishi UFJ) and Yasushi Itagaki (Managing Executive Officer, Global Business Unit of Mizuho Bank).
Through the P10.8-billion loan, Maynilad can pursue capital expansion projects that are expected to benefit some five million people and generate over 8,700 local jobs in engineering and construction.
Fernandez thanked JICA for recognizing Maynilad’s credit worthiness and ability to execute large-scale projects. “With this loan, we are in a better position not only to improve and expand water coverage in the West Zone, but also to ensure long-term water security for future generations,” he said.
Maynilad is owned and managed by Maynilad Water Holdings Company, Inc. a joint venture between Metro Pacific Investments Corporation, DMCI Holdings, Inc., and Marubeni Corp. DMS
