MAYNILAD Water Services Inc. (Maynilad) said Friday that it could undertake an initial public offering (IPO) as early as next year after having raised P15 billion from the issuance of blue bonds for its sustainable water and wastewater management.
In an interview following the listing of the blue bonds on the Philippine Dealing & Exchange Corp., Maynilad President and Chief Executive Officer Ramoncito Fernandez said the offering was a step forward in their plans to take the company public.
"With regard to the IPO, we are not technically all set. But with regard to the requirements, the ones left that we need to complete are just small details," he said, adding that Maynilad could do the IPO anytime in 2025 or in 2026 depending on market conditions.
The blue bond issue was more than two times oversubscribed from the base issue size of P12 billion and an oversubscription option of up to P3 billion. Strong demand allowed Maynilad to price the bonds at 6.7092 percent per year for Series A five-year bonds due 2029 and 7.0931percent for the Series B 10-year bonds due 2034.
"I am pleased to share that our offering was met with overwhelming interest, resulting in an oversubscription. It is a testament to the confidence that the investing community has in Maynilad's vision and the future we are building together," Fernandez said.
"As we confront the challenges of water scarcity and climate change, it is imperative that we invest in technologies and systems that enhance our capacity to manage water resources efficiently," he added.
BPI Capital Corp. acted as the sole issue manager of the offer, and together with BDO Capital and Investment Corp., First Metro Investment Corp. and East West Banking Corp., also served as joint lead underwriter and joint bookrunner.
Fernandez said that for 2024, Maynilad was "done with our fundraising via this blue bond and other loans we have gotten."
"Now for 2025, we are looking at a combination of bilateral loans, possibly other instruments, and of course our IPO in order to raise capital for our projects. The capital expenditure for 2025 ranges from P35 billion to P40 billion."
"As many of you know, Maynilad has been granted a legislative franchise, which includes the requirement for an IPO by January 2027. This [blue bond] issuance lays the groundwork for that, as it shows our financial strength and our readiness to take on greater responsibilities in the public sphere," he added.
Republic Act 11600, signed into law in 2021, granted Maynilad a 25-year franchise until 2047 to establish, operate and maintain a waterworks system and sewerage and sanitation services in the west zone service area of Metro Manila and Cavite province.
The law also requires Maynilad to offer at least 30 percent of its outstanding capital stock within five years from the grant of the franchise.
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