Daily TribuneAs outlined in the SEC Memorandum Circular No. 15, series of 2023, initiatives using proceeds from blue bond offerings should support water management and ocean protection, among others.
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West zone concessionaire Maynilad Water Services Inc. is all set for the issuance of its first-ever blue bonds that could generate as much as P15 billion in fresh funding to support the company's sustainability drive.
The water company said on Friday that it has already secured the permit to sell (PTS) from the Securities and Exchange Commission (SEC) for the issuance.
The PTS covers a special public offer and sale of blue bonds with fixed interest rates. The bonds will be issued in two series.
The Series A blue bonds entail a 6.7092 percent five-year fixed rate due in 2029 with an aggregate base principal of up to P12 billion.
The Series B blue bonds, on the other hand, have 7.0931 percent 10-year fixed rate bonds due in 2034 with an oversubscription option of up to P3 billion. Both series will be issued at par value.
According to Maynilad, the funds that will be raised from the offering will be used to finance “eligible Blue Projects and/or Blue Activities".
As outlined in the SEC Memorandum Circular No. 15, series of 2023, initiatives using proceeds from blue bond offerings should support water management and ocean protection, among others.
Maynilad’s Blue Bonds was granted a PRS Aaa with a Stable Outlook by the Philippine Rating Services Corp. (PhilRatings) on 15 March, which is the highest possible credit rating on the PhilRatings scale and is given to debt obligations with the smallest degree of investment risk.
Maynilad set the bond offer period from 1 to 5 July and Philippine Dealing and Exchange Corp. listing on 12 July.
The company tapped BPI Capital Corporation as the Sole Issue Manager, and together with, BDO Capital & Investment Corp, First Metro Investment Corp., and East-West Banking Corp. as the joint lead underwriters and joint bookrunners of the offer.
Maynilad is the water and wastewater services provider for the West Zone.
The west zone covers 17 cities and municipalities such as in Caloocan,
Malabon, Navotas, Valenzuela, parts of Quezon City, parts of Manila, parts of Makati, Pasay, Parañaque, Las Piñas, and Muntinlupa — all in Metro Manila; and the cities of Cavite, Bacoor and Imus, and the municipalities of Kawit, Rosario and Noveleta — all in Cavite Province.
