MANILA, Philippines - Manila Water Company Inc. said on Thursday it had sealed a $150 million, 10-year loan facility with 4 foreign banks, with proceeds to be used to fund capital expenditures.
The utility said the facility was with lead arranger ING Bank N.V. Tokyo Branch, as well as Bank of Tokyo-Mitsubishi UFJ, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp.
The loan is covered by the Overseas United Loan Insurance program of Japanese agency Nippon Export and Investment Insurance (NEXI).
"This loan transaction is a landmark deal for our company. The insurance cover provided by NEXI allowed us to stretch the tenor of the loan facility up to 10 years, which is not usual for commercial loan transactions," Manila Water president Gerardo Ablaza said in a statement.
Manila Water, a unit of conglomerate Ayala Corp., said proceeds will be used to fund expansion and the maintenance of water supply facilities and distribution network.