Ayala-led Manila Water Company Inc. raised as much as P8.7 billion through a term-loan facility.

In a disclosure to the Philippine Stock Exchange on Tuesday, Manila Water said it signed a seven-year 250-million euro (P8.7 billion) agreement with Bank of China Hong Kong Ltd. and Bank of China Ltd.-Manila branch to help finance its capital needs.

Manila Water said proceeds will be used to finance projects, including the development of medium-term water sources, improvements in existing distribution systems, construction of new sewerage treatment plants and expansion of sewer networks.

Under the Rate Rebasing 2018 approved business plan, the company is programmed to implement capital expenditure projects amounting to P79.4 billion for the period 2018 to 2022.

Earlier this year, Manila Water said it will spend up to P198 billion through 2037 to fund its used water management initiatives.

Of the total, P115.2 billion will be used for used water management efforts while the remaining P82.6 billion will be allocated for water supply business.

The company said it was targeting to cover 100 percent of the east concession over the next 18 years.

During the first half of the year, Manila Water recorded a net income of P2.9 billion, or 18 percent lower than the P3.55 billion reported in the same period last year, despite a 7-percent uptick in revenues at P10.5 billion.