WEST ZONE concessionaire Maynilad Water Services, Inc. said it is seeking approval from the Securities and Exchange Commission (SEC) for a proposed public offering of up to P12 billion in fixed-rate blue bonds.
“Maynilad has submitted a registration statement to the SEC,” the company said in an e-mailed statement on Wednesday.
The offering includes an oversubscription option of up to P3 billion. The blue bonds will be issued in up to two series with tenors of five years and/or 10 years.
The company said the target offer period will run from May 27 to May 31. It intends to issue and list the blue bonds on the Philippine Dealing & Exchange Corp. on June 7.
“The blue bonds are intended to be issued at par (value), and interest on the blue bonds will be calculated on a 30/360-day count basis to be paid quarterly in arrear,” it said.
The net proceeds from the offer are intended to finance sustainable water and wastewater management projects, according to the company.
In the SEC’s guidelines, initiatives using proceeds from the offering of blue bonds — or instruments supporting water management and ocean protection, among others — should contribute to the United Nations (UN) Sustainable Development Goals 6 and 14.
The two UN goals respectively aim to ensure the availability and sustainable management of water and sanitation, and conserve and sustainably use the oceans, seas ,and marine resources for sustainable development.
“This inaugural public issuance marks a significant milestone not only for Maynilad but also for the country, as it the first Peso-denominated fixed-rate blue bond to be registered with the SEC,” Maynilad President and Chief Executive Officer Ramoncito S. Fernandez said.
“The proceeds from this issuance will propel crucial capital expenditure projects that will enhance water and wastewater services for communities across our West Zone,” he added.
Maynilad said it obtained the highest credit rating of PRS Aaa with a stable outlook from the Philippine Ratings Services Corp. for the bond offer.
BPI Capital Corp. served as the sole issue manager, and together with BDO Capital & Investment Corp., First Metro Investment Corp., and EastWest Banking Corp. acted as the joint lead underwriters and joint bookrunners for the offer.
Maynilad serves the cities of Manila, except San Andres and Sta. Ana. It also operates in Quezon City, Makati, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon. It also supplies the cities of Cavite, Bacoor, and Imus, and the towns of Kawit, Noveleta, and Rosario, all in Cavite province.
Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — S.J. Talavera
