Manila Water sets IPO for 2005

Ayala-led Manila Water Co. Inc. (Manila Water) plans to raise US$ 20m in the next few months, and another US$ 110m in the next three to five years to finance its expansion projects.

Ayala-led Manila Water Co. Inc. (Manila Water) plans to raise US$ 20m in the next few months, and another US$ 110m in the next three to five years to finance its expansion projects. The company is also scheduling an initial public offering (IPO) in 2005.

The US$ 20m will be raised through a syndicate of banks, with the Bank of the Philippine Islands (BPI) as its lead arranger and financial adviser. Other fund-raising activities will likely involve the International Finance Corp. (IFC), the private investment arm of the World Bank.

Manila Water has tapped $30.59m with the help of the IFC under a 15-year term, the longest the World Bank investment arm ever undertook in the Philippines.

The IPO is tentatively scheduled for 2005, or a year after the national elections, with the hope of raising US$ 35.6m to US$ 89m. BPI Capital Corp. and ING Barings will be tapped as financial advisers.

"It would be the best time for the company to make its IPO a year after the elections for a stable political and market environment," Manila Water President Antonino T. Aquino said.

Manila Water, the east zone water concessionaire for Metro Manila, earmarked US$ 53m to maintain existing water facilities and install a 50-km pipeline to connect more customers. From 2.8 million in 1997, Manila Water's customer base grew from 2.8 million in 1997 to 4.3 million in 2003.

More in International
Potable Water Management 4.0
Sponsored
Potable Water Management 4.0