Manila Water to secure 60M euro loan from EIB

Ayala-led Manila Water Co. is currently negotiating with the European Investment Bank for a credit line facility of 60 million euros to partly fund its P30-billion expansion program over the next five years. Sherisa Nuesa, Manila Water chief finance officer, told reporters at a press conference following the company's annual stockholders meeting that the company is in "active negotiations" with EIB. Nuesa said the investment bank usually gives a 10-year tenor to its loans. The official said 70 percent of the company's capex would come from internal funds and the rest from borrowings. Manila Water also has a standby $30 million credit line facility from the International Finance Corp., the private sector arm of the World Bank. For the 2007 and next year, the company has an average of P800 million to P900 million in maturing loans. Meanwhile, Antonino Aquino, Manila Water president, said that the expiration this year of the company's income tax holiday will affect its net income. "Of course, the tax will bite into the net income but the earnings before income tax and depreciation adjustment will still see growth for the year," Aquino said. But for the first quarter of the year, Aquino said there is a "very positive indication" that the company will have the same growth that it had in the same period in 2006. Company officials also said they will continue to pursue the expansion program including the possibility of having management contracts in countries such as Vietnam, India, Indonesia and Thailand. Last year the company's net income rose 19 percent to P6.5 billion on stronger revenue growth. Manila Water closed higher on Tuesday at P9.60 from Monday's close of P9.30-GMANews.TV