A Philippine Green Equity label, which promotes sustainable finance, will mark water distributor Maynilad Water Services Inc.’s initial public offering (IPO), the first share sale to be treated in this manner, the Securities and Exchange Commission (SEC) said yesterday.
The SEC, in a statement, said that Maynilad “has sufficiently established and demonstrated its compliance with the requirements under the Guidelines on Philippine Green Equity” to be given the market. The mark is subject to Maynilad’s continuing compliance with the guidelines.
Maynilad is offering to the public 1.66 billion shares for the firm offer and an additional 249.05 million shares covering the greenshoe option, as well as a preferential offer of up to 24,904,800 shares, currently priced at up to P20 per share.
The offer will run from October 23 to 29, with the shares expected to be listed on the main board of the PSE on November 7, according to the latest timeline it submitted to the SEC.
Unveiled last month, the Guidelines on Philippine Green Equity allow publicly listed companies and companies preparing to go public that generate more than 50 percent of their revenues from, and direct more than 50 percent as well of their investments toward, green activities, to distinguish themselves from other issuers through the use of the Philippine Green Equity label.
Such activities must meet the eligibility criteria of the Philippine Sustainable Finance Taxonomy Guidelines (SFTG), or the ASEAN Taxonomy for Sustainable Finance (ATSF). Companies’ revenues derived from fossil fuels must also be limited to less than 5 percent.
In Maynilad’s case, the SEC noted that it derives 100 percent of its revenues from green activities, such as water supply, wastewater treatment, sanitation services, and the installation of new water service connections, in line with the minimum 50 percent requirement provided under the guidelines.
It also noted that 95 percent of Maynilad’s capital expenditure, and 87 percent of its operating expenses were aligned mainly with green activities, complying with the minimum of more than 50 percent of a company’s investments must be channelled to such activities.
Maynilad also had no revenues derived from fossil fuel activities, in compliance with the threshold of less than five percent permitted under MC 13.
Meanwhile, Maynilad was given one year to align its activities with either the SFTG or the ATSF, in accordance with the transition period provided in the guidelines.
