A UNIT of Manila Water Co., Inc. has signed a memorandum of agreement with SM Prime Holdings, Inc. and the latter’s affiliates and subsidiaries, the Ayala-led company said on Thursday.
In a disclosure to the stock exchange, Manila Water said its subsidiary Manila Water Philippine Ventures, Inc. (MWPV) signed the deal with SM Prime and SM Development Corp. and SM Residences Corp.

“MWPV will provide the water and/or used water services and facilities to the property development projects of the SM Group identified in the relevant MoA (Memorandum of Agreement),” Manila Water said.

“The objective of the parties in entering into the agreement is to leverage on their respective expertise in order to provide the optimal service and facilities for their customers and clients,” it added.

In October, Manila Water disclosed that MWPV signed a P4-billion loan with Security Bank Corp. and Metropolitan Bank and Trust Co. The loan facility has an option to increase up to P7 billion.

It was MWPV’s maiden loan, which Manila Water described as “the single largest capital raising activity” of a company subsidiary. The fixed term loan facility has a 15-year tenor and was arranged by SB Capital and First Metro Investment Corp.

The proceeds of the loan will be used to partly finance the company’s capital expenditure program for its estate water business, future acquisitions, and other general corporate requirements.

On Thursday, shares in Manila Water closed higher by 0.67% to P30 apiece.