Overview

Bank of China (Hong Kong Branch) contributes to EUR 250 million syndicated loan to Manila Water Company to support its 2019-2020 capital investment program

Commitments (Constant USD, 2023)$145,314,203

Commitment Year•2019Country of Activity•PhilippinesDirect Recipient Country of Incorporation•PhilippinesOverseas Jurisdiction•Hong Kong (China)Sector•Water Supply And SanitationFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Aug 27, 2019

Start (actual): Aug 27, 2019

First repayment (originally scheduled): Feb 24, 2023

Last repayment (originally scheduled): Aug 25, 2026

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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A description of the scope of Manila's East Zone can be found here: https://www.manilawater.com/customer/business-areas More detailed location information can be found at: https://www.openstreetmap.org/relation/103703#map=11/14.6068/121.1112

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

Bank of China (BOC)

Receiving agencies

Private Sector

Manila Water Company

Loan description

Bank of China branch contributions to EUR 250 million syndicated loan to Manila Water Company to support its 2019-2020 capital investment program

Grace period•3.5 yearsInterest type•UnknownMaturity•7 years

Narrative

Full Description

Project narrative

On August 27, 2019, Manila Water Company (MWC) entered into an EUR 250 million syndicated loan agreement with Bank of China (Hong Kong) Limited and Bank of China Limited, Manila Branch. The proceeds of the loan were to be used by the borrower to fund its capital investment program in 2019 and 2020. The borrower was expected to repay the loan in eight installments beginning in installments starting April 2023. The lender disbursed EUR 40 million in 2019 and EUR 90 million in 2020. Then, in August 2021, MWC prepaid the loan’s (principal) amount outstanding (EUR 130 million) at a prepayment cost of PHP 7.74 million. In the same month (August 2021), the lender disbursed an additional EUR 120 million to the borrower (MWC).

Staff comments

1. Both members of the loan syndicate are branches of Bank of China. For the time being, AidData assumes that Bank of China (Hong Kong) Ltd. and Bank of China Ltd., Manila Branch made equal contributions (EUR 125 million) to the loan syndicate. This issue warrants further investigation. 2. Manila Water Company, Inc. is a private corporation. It has the exclusive right to provide water and used water services to over six million people in the East Zone of Metro Manila. It is a subsidiary of the country's oldest conglomerate, Ayala Corporation.