The Securities and Exchange Commission (SEC) has approved the planned P15 billion offering of blue bonds by Maynilad Water Services, Inc.
In its meeting on May 16, the Commission En Banc resolved to render effective the registration statement of Maynilad covering up to P12 billion of fixed-rate, peso-denominated blue bonds, with an oversubscription option of up to P3 billion, subject to the company’s compliance with certain remaining requirements.
Assuming the oversubscription is fully exercised, the listed water concessionaire expects to net P14.82 billion from the offer.
Proceeds will be used primarily to finance eligible blue activities, as provided under SEC Memorandum Circular No. 15, Series of 2023, or the Guidelines on Eligible Blue Activities and Activities for the Issuance of Blue Bonds in the Philippines.
Blue bonds refer to a subset of green bonds and sukuk whose proceeds will exclusively be used to finance or refinance new and/or existing eligible blue projects and activities.
Eligible blue projects are classified into several categories, including sustainable fisheries management, sustainable aquaculture, wastewater management, and marine and offshore renewable energy that do not harm marine ecosystems, among others.
The bonds will be offered at face value from May 27 to 31, in time for listing at the Philippine Dealing & Exchange Corporation on June 7, according to the latest timetable submitted to the SEC.
Maynilad has tapped BPI Capital Corporation as the sole issue manager for the offer. BPI Capital will also act as joint lead underwriter and joint bookrunner, together with BDO Capital & Investment Corporation, First Metro Investment Corporation, and East West Banking Corporation.