Manila Water may sell more bonds as investors seek haven

MANILA, Philippines - A Metro Manila water distributor may hike the amount of bonds it plans to sell, hoping that the financial instrument will be attractive enough to investors seeking a safe haven. Ayala-led Manila Water Co. Inc. (MWCI) filed an amendment to its bond sale, seeking an option to sell more debt by P1 billion. The company sought to provide an additional “allocation for oversubscription," indicating that it expects more investors to buy more of its debt, MWCI said in a disclosure to the Philippine Stock Exchange (PSE). With the announcement, the company expects to sell some P4 billion worth of bonds. Besides maturing five years after the issuance date, the interest rate “has yet to be determined," Dave Valeriano, the utility’s investor relations manager told GMANews.TV. The interest rate will depend on “benchmark rates" and “certain timing" in the market, Valeriano said, adding that the bond sale will take place “anytime within the early fourth quarter." Proceeds of the bond issuance will bankroll its program to increase services in Rizal. “Additional customers will be covered by waste water services," Valeriano said, referring to the process of treating used water before being disposed of in the country’s waterways. Manila Water, which has more than five million customers in Metro Manila’s east zone, will file a new disclosure regarding the transaction within the week, he said. Shares of Manila Water fell P0.50 to P15.75 during Thursday’s trading at the PSE. - GMANews.TV