Manila Water (MWC) avails of debt amounting to PHP4.45 bn. PHP4 bn of which is a 15-year long term debt from Security Bank and Metrobank which has an option to increase up to PHP7 bn. The loan is for wholly-owned Manila Water Philippine Ventures, Inc. (MWPV). Meanwhile, MWC borrowed PHP450 mn from PNB for Tagum Water Company, Inc., a wholly-owned bulk water distribution company. These are part of MWC’s efforts to double its net income by 2020 from almost PHP6 bn in 2015. MWC operates the East Zone and has eyed nationwide and overseas opportunities to meet its target. With the additional debt load, debt to equity ratio rises to 0.97x from 0.87x, and interest-bearing debt to equity ratio rises to 0.66x from 0.56x. The additional debt does not dent MWC’s financial condition and are seen to bring in additional earnings in the medium term.
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