Maynilad Water Services, Inc. (“Maynilad”) has submitted a registration statement to the Securities and Exchange Commission (“SEC”) for its proposed offer to the public of up to PHP 12 Billion fixed-rate Blue Bonds with an oversubscription option of up to PHP 3 Billion (the “Offer”) to be issued in up to two (2) series with tenors of 5 years and/or 10 years (the “Blue Bonds”). Maynilad has likewise submitted an application for confirmation of the Blue Bond label on 15 March 2024, together with the registration statement.
The Blue Bonds are intended to be issued at par, and interest on the Blue Bonds will be calculated on a 30/360-day count basis to be paid quarterly in arrear. The target offer period will run from 27 May 2024 to 31 May 2024. Maynilad intends to issue and list the Blue Bonds on PDEx on 7 June 2024.
Philippine Ratings Services Corp. (“PhilRatings”) has assigned the highest credit rating to the Offer. The Blue Bonds have been rated PRS Aaa with a Stable Outlook, which is given to obligations that are of the highest quality, with minimal credit risk.
In accordance with Maynilad’s Sustainable Finance Framework, the net proceeds from the Offer are intended to finance sustainable water and wastewater management projects. These projects are aligned with the SEC’s Guidelines on Eligible Blue Projects and Activities for the Issuance of Blue Bonds in the Philippines.
“This inaugural public issuance marks a significant milestone not only for Maynilad but also for the country, as it is the first PHP-denominated fixed-rate Blue Bond to be registered with the SEC. The proceeds from this issuance will propel crucial capital expenditure projects that will enhance water and wastewater services for communities across our West Zone,” said Maynilad President and CEO Ramoncito S. Fernandez.
BPI Capital Corporation is the Sole Issue Manager, and together with BDO Capital & Investment Corporation, First Metro Investment Corporation and East West Banking Corporation are the Joint Lead Underwriters and Joint Bookrunners for the Offer.
Maynilad is the water and wastewater services provider for the West Zone. The West Zone is comprised of 17 cities and municipalities which include Caloocan, Malabon, Navotas, Valenzuela, parts of Quezon City, parts of Manila, parts of Makati, Pasay, Parañaque, Las Piñas, and Muntinlupa—all in Metro Manila; the cities of Cavite, Bacoor and Imus, and the municipalities of Kawit, Rosario and Noveleta—all in Cavite Province. The Maynilad business address is at the Engineering Building, MWSS Complex, Katipunan Ave., Balara, Quezon City, 1119, Philippines. The Company’s telephone number is (+632) 8 981 3333, and its corporate website is https://www.mayniladwater.com.ph.
