(Bloomberg) -- Maynilad Water Services Inc. is planning a maiden share sale as early as next year, its CEO said, after the company this month raised 15 billion pesos ($257 million) from a public offer of blue bonds.
“This bond issuance lays the groundwork for our future IPO,” Maynilad President and CEO Ramoncito Fernandez said during the listing of the bonds. The water provider to half of the Philippine capital region plans to spend up to 30 billion pesos for projects this year and 40 billion pesos in 2025, he said.
Maynilad sold blue bonds due in 2029 and 2034 with interests of 6.7092% and 7.0931% respectively — the Philippines’ first public offering of this new type of sustainability bond. Proceeds will add to the 10 billion pesos in loans secured earlier in the year, Fernandez said.
The company doesn’t plan to raise any more funds from the capital market for the rest of 2024, and any spending on top of what has been budgeted will be funded by internally generated funds, he said.
In 2023, the Philippines’ Securities and Exchange Commission introduced rules which require the funds raised by blue bonds to be exclusively used to fund projects such as waste water treatment and ocean protection. The Philippines is one of the world’s largest contributors to ocean pollution.
(Updates with additional details.)
©2024 Bloomberg L.P.