Hong Kong and Manila Branches of Bank of China provide EUR 250 million syndicated loan to Manila Water Company to support its 2019-2020 capital investment program

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).

Additional details

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.

Number of official sources

9

Number of total sources

12