The Securities and Exchange Commission (SEC) has granted Maynilad Water Services, Inc. the first Philippine Green Equity label, the regulator announced on Wednesday.
In a letter dated Sept. 26, the SEC’s Markets and Securities Regulation Department said that Maynilad meets the criteria, with all its revenue coming from water-related activities such as treatment and sanitation.
An external reviewer’s assessment submitted to the SEC showed that Maynilad earned 100% of its revenue from green activities, such as water supply, wastewater treatment, sanitation services, and new water service installations, surpassing the 50% requirement.
Additionally, 95% of its capital expenditure and 87% of operating expenses supported green initiatives.
Maynilad reported no income from fossil fuel activities, remaining below the 5% limit.
The SEC said the company has one year to adjust its operations to comply with the Philippine Sustainable Finance Taxonomy Guidelines (SFTG) or the ASEAN Taxonomy for Sustainable Finance (ATSF) during this transition, ensuring its green projects support environmental goals and adhere to social safeguards.
The Green Equity label was granted ahead of Maynilad’s planned initial public offering (IPO) in November.
Meanwhile, the water utility concessionaire said it remains optimistic about its IPO and latest target listing date despite challenging market conditions.
“The market is bad, but we are putting in a very successful and incredible story,” Maynilad President and Chief Executive Officer Ramoncito S. Fernandez told reporters on the sidelines of a Shareholders’ Association of the Philippines (SharePHIL) event on Wednesday.
“The progress is promising, and we will file the final prospectus by this Friday,” he added.
IPO PRICE CEILING LOWEREDMaynilad has lowered the upper limit of its IPO price to P15 per share from P20 in response to institutional investors’ preference.
In its latest preliminary prospectus, Maynilad said the International Finance Corporation plans to invest up to $100 million as a key investor, purchasing shares at the new price.
The Asian Development Bank is also considering a similar investment of up to $145 million but is awaiting board approval.
In a disclosure to the Philippine Dealing and Exchange Corp. last Thursday, Maynilad said the target listing date was moved from Oct. 30 to no later than Nov. 7 to accommodate cornerstone investors and allow potential investors to better understand its business model.
The company is offering a total of 2.29 billion shares, including 1.66 billion new shares, 24.9 million new shares specifically for First Pacific Co., 354.7 million shares from existing shareholders, and an option for an additional 249.05 million shares.
Proceeds from the sale of new shares will be used mainly to support Maynilad’s capital projects through 2025 and 2026, focusing on water infrastructure, wastewater management, and customer service and information technology improvements. Some funds may also cover general corporate expenses. — Alexandria Grace C. Magno
