Manila Water to obtain P2.4-B loan from BPI

MANILA WATER Co., Inc. said its subsidiary serving Boracay island had signed a P2.4-billion loan agreement with the Bank of the Philippine Islands (BPI) in part to cover its five-year budget.

The unit — Boracay Island Water Co., Inc. — signed the fourth omnibus loan and security agreement with the bank on Wednesday, Manila Water told the stock exchange. The companies involved are all subsidiaries of Ayala Corp.

“The loan will be used to finance general corporate requirements and capital expenditures of Boracay Water in fulfillment of its service obligations, as well as refinance an existing loan,” Manila Water said.

Boracay Water will be spending P2.2 billion in capital expenditure from 2018 to 2022 after the approval of its business plan in its rate rebasing of 2017.

On Wednesday, shares in Manila Water fell 0.18% to P27.95 each.

Boracay Water was formed through a 25-year concession agreement between Manila Water and the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) in 2009.

The partnership delivers the water and used water requirements of the three Boracay barangays of Manocmanoc, Balabag and Yapak.

On Dec. 15, Manila Water said the TIEZA regulatory office had approved the implementation of the second of three tranches of new water rates of Boracay Water. —