Maynilad’s $100M IPO Backed by IFC to Expand Water, Wastewater Services in Manila

In a landmark move to enhance access to clean water and wastewater services in Metro Manila's West Zone, the International Finance Corporation (IFC) has invested $100 million as a cornerstone investor in the initial public offering (IPO) of Maynilad Water Services, Inc. The investment is expected to unlock long-term capital, fund strategic expansion, and set a precedent for utilities in emerging markets to access equity markets for development financing.

The IPO, which marked Maynilad's debut on the Philippine Stock Exchange, is a milestone not only for the utility itself—Southeast Asia's largest single-concession water operator by population served—but also for the broader water sector, which often faces financing gaps in meeting rising demand from underserved urban populations.

Transforming Access to Clean Water and Sanitation

Proceeds from the IPO will directly support Maynilad's capital expenditures and general corporate operations, with a substantial portion allocated to wastewater infrastructure development. The company plans to reach 100% wastewater service coverage by the end of 2026, a goal that aligns with national public health priorities and the UN Sustainable Development Goals (SDGs).

Expanding wastewater coverage will:

• Improve sanitation and hygiene, especially in low-income and high-density areas

• Help reduce waterborne illnesses

• Promote environmental protection through enhanced wastewater treatment

• Ensure a potable water supply for communities currently underserved

IFC's Strategic Role and Sectoral Vision

The IFC's investment represents more than just capital; it is a strategic endorsement of Maynilad's long-term sustainability vision. As a cornerstone investor, IFC provides confidence to other market participants, catalyzing additional investments and broadening access to funding for other utilities in the Philippines and the region.

"This investment reflects our focus on enhancing services for the Filipino population, while also highlighting IFC's ongoing efforts to bolster capital market activity in the country," said Amena Arif, IFC's Country Manager for the Philippines.

Maynilad is now also part of IFC's Utilities for Climate (U4C) network, a global platform that:

• Facilitates peer learning and adoption of climate-smart technologies

• Promotes climate-resilient service delivery

• Enhances operational efficiencies and environmental safeguards

Advancing Environmental, Social, and Gender Inclusion Goals

IFC's involvement extends to technical capacity-building and environmental-social governance (ESG) improvements. Through collaboration aligned with IFC's Performance Standards, Maynilad will:

• Improve its environmental and social management systems

• Strengthen stakeholder engagement, particularly with vulnerable communities

• Establish frameworks to promote gender inclusion within the utility workforce

The goal is to position Maynilad as a regional leader in sustainable and inclusive utility management, with a strong focus on being an employer of choice for women and underrepresented groups in the utility sector.

Building Capital Market Access for Infrastructure Development

The Maynilad IPO is a blueprint for emerging-market utilities seeking to reduce reliance on public funding while pursuing ambitious infrastructure goals. IFC's investment showcases how capital market access can:

• Enable service expansion

• Fund efficiency upgrades

• Support private-sector-led climate resilience

"This marks the beginning of a new chapter for Maynilad," said Ramoncito S. Fernandez, Maynilad President and CEO. "The IPO enables us to pursue our long-term expansion plans and strengthens our positioning as a pure-play sustainability company delivering value and positive impact to communities in our concession area."

A Model for Sustainable Urban Water Management

As Metro Manila grapples with rapid urbanization, growing water demand, and increasing environmental pressures, Maynilad's IPO-backed expansion plan sets a new standard for urban water governance in Southeast Asia. With IFC's backing and access to climate-smart utility networks, Maynilad is now poised to:

• Lead on sustainable water management

• Expand service to millions of households

• Promote resilience in public health and urban infrastructure

The partnership between Maynilad and IFC represents an important public-private alignment to tackle one of the most urgent challenges of our time—ensuring safe and equitable access to water and sanitation in the face of climate change and urban population growth.