Manila Water successfully refinances East Water acquisition loan
Manila Water (Thailand) Co. Ltd., a subsidiary of Manila Water Company, Inc., through Manila Water Asia Pacific Pte. Ltd., signed a THB5.30 billion, 5-year term loan facility with Mizuho Bank, Ltd. – Bangkok Branch and Bank of Ayudhya Public Company Limited to take out the previous bridge loan used to finance the acquisition of an 18.72% equity stake in Eastern Water Resources Development and Management Public Company Limited.
The acquisition, which is Manila Water’s first investment in Thailand and which was achieved through support of strategic lenders, will further bolster the company’s expansion in the ASEAN region.
East Water provides raw and tap water supply services, with volume in excess of 1,000 million liters per day (MLD), in the eastern region of Thailand – the country’s main industrial area and home to various heavy industries; including automotive, electronics, and petrochemicals. Currently, East Water provides raw water supply to three (3) provinces; operates seven (7) tap water concessions and provides water service to several industrial estates – all situated within a total area of 13,285 square kilometers; a region nearly as large as CALABARZON here in the Philippines. East Water presents significant growth potential by way of the Eastern Economic Corridor (EEC), the Thai government’s initiative to further develop the country’s eastern seaboard into a leading economic zone in ASEAN.