In a letter to the company dated Sept. 26, the SEC’s markets and securities regulation department confirmed Maynilad’s compliance with the Guidelines on Philippine Green Equity, subject to its continuing adherence to sustainability standards.
The announcement comes just days after the SEC launched SEC Memorandum Circular No. 13, Series of 2025 — the first Green Equity guidelines in Southeast Asia — designed to encourage sustainable business practices and expand the local sustainable finance ecosystem.
The guidelines complement the country’s P1.02-trillion sustainable finance fixed-income market, widening investor access to climate-resilient and environmentally aligned investment opportunities.
What the Label requires
Under MC 13, companies eligible for the Philippine Green Equity label must be listed on the Philippine Stock Exchange (PSE), or preparing to go public. They must derive over 50 percent of revenues and investments from green activities that meet the standards of either the Philippine Sustainable Finance Taxonomy Guidelines (SFTG) or the ASEAN Taxonomy for Sustainable Finance (ATSF).
Additionally, revenues from fossil fuels must be limited to less than 5 percent of total earnings.
Maynilad clears the bar
Based on the assessment of an independent external reviewer, 100 percent of Maynilad’s revenues were derived from green activities, including water supply, wastewater treatment, sanitation services, and the installation of new water connections.
The report also found that 95 percent of its capital expenditures and 87 percent of its operating expenses were aligned with environmentally sustainable activities — far exceeding the 50 percent threshold.
Crucially, the company reported zero revenues from fossil fuels, fully meeting the SEC’s criteria.
Transition period and compliance
While Maynilad secured the label, the company has been given one year to align its green activities fully with either the SFTG or ATSF. During this transition, Maynilad must ensure that its activities significantly contribute to at least one environmental objective and that they comply with minimum social safeguards.
IPO on the horizon
The timing of the recognition is significant as Maynilad prepares for its initial public offering (IPO) on the PSE in November. The company is offering up to 1.66 billion common shares, with an overallotment option of 249 million shares and a preferential tranche of nearly 25 million shares, priced at up to P20 per share.
If fully subscribed, Maynilad could raise up to P37.38 billion, strengthening its capacity to expand water services and sustainability-linked infrastructure.
The public offer period is set for Oct. 23 to 29, with shares expected to debut on the PSE main board on Nov. 7. —Ed: Corrie S. Narisma
