Maynilad’s P15-B float gets strong demand

West zone concessionaire Maynilad Water Services Inc. (Maynilad) said investors’ favorable reception of its first-ever P15-billion blue bonds issuance has set a positive precedent for its future fund-raising activities.

Maynilad officially listed its maiden blue bond issuance on the Philippine Dealing & Exchange Corp. on Friday.

 “I am pleased with the strong reception our maiden blue bond issuance has received from the investing community,” Maynilad president and chief executive officer Ramoncito S. Fernandez said.

“The enthusiastic participation from institutional and retail investors attests to their confidence in Maynilad’s vision and our commitment to sustainability. This successful start sets a promising precedent for our future fund-raising endeavors,” he added. 

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.

Pricing at tight end

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. 

Maynilad was able to price the Blue Bonds at the tight end of the corresponding spread range for each series due to the issuance being more than twice oversubscribed from the base issue size.

The funds 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. 

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.