Manila Water Philippine Ventures Inc., a wholly-owned subsidiary of Manila Water Co Inc., said Tuesday it obtained a P3-billion loan from two banks.
Manila Water said in a disclosure to the stock exchange MWPVI signed an additional P3-billion term loan facility with Security Bank Corp. and Metropolitan Bank and Trust Company Inc. This is on top of the P4 -billion term loan facility it signed in 2016 with the same banks.
“The loan will be used to partially finance MWPVI’s capital expenditure programs and expansion projects,” Manila Water said.
MWPV was designated as the vehicle for expansion of Manila Water within the Philippines. With focus on geographic expansion, its specific mandate is to look for new acquisitions and partnerships across the country.
Operations currently under MWPV are LagunaAAA Water Corp., Boracay Island Water Company, Clark Water Corp., Manila Water Consortium Inc. and Estate Water, an operating division under MWPV which operates and manages the water systems of townships developed by Ayala Land Inc.
The group has other new projects in its portfolio including the Zamboanga City performance-based non-revenue water reduction project under Zamboanga Water Company Inc. and the Tagum City bulk water supply project under Tagum Water Company Inc.
MWPV incurred a loss of P151 million in the first quarter on lower income contribution from Estate Water with the decrease in supervision fees.
The decline was primarily the result of the change in accounting treatment for said fees, but also in part by the stoppage of projects due to the enhanced community quarantine.
Even as the improved performance of other core subsidiaries like Laguna Water and Clark Water partially offset the decline, additional expenses recognized for MWPV’s various exposures during the period contributed to the net loss.
Excluding one-off items, MWPV posted a net income of P38 million for the period, down 78 percent from a year ago.
