Clark Water signs P535-million loan agreement with DBP

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CLARK WATER Corp. has signed a term-loan agreement amounting to P535 million with the Development Bank of the Philippines (DBP), according to parent company Manila Water Co., Inc.

“The proceeds of the loan will be used to partially finance Clark Water’s Concession capital expenditure program,” the Ayala-led water concessionaire told the stock exchange on Monday.

The loan was signed on Monday by Clark Water — through Manila Water Philippine Ventures, Inc., which houses the listed company’s projects in the provinces.

“Clark Water is the concessionaire of Clark Development Corporation under a 40-year contract for the construction, management, operation and maintenance of the water and wastewater facilities in the Clark Freeport Zone concession area,” Manila Water said.

On Monday, shares in Manila Water dropped by 1.85% to close at P26.60 each.

The loan agreement follows Manila Water’s disclosure on Feb. 27 that its subsidiary Manila Water (Thailand) Co. Ltd. had signed a 5.30-billion Thai baht loan with the Bangkok branch of Mizuho Bank, Ltd. and Bank of Ayudhya Public Co. Ltd.

Last year, subsidiary Manila Water Philippine Ventures won 11 new projects. Its subsidiaries continued to post positive revenue growth, increasing 6% to P3.3 billion.

Overseas, Manila Water recorded its largest regional investment to date, with the acquisition of the stake in East Water. It also acquired a stake in PT Sarana Tirta Ungaran in Indonesia. — Victor V. Saulon