A leading Philippine water company will increase its investment in Vietnam via a Singapore-based subsidiary, Filipino media reported on Tuesday.

Manila Water Company Inc. (MWC) will pump an additional investment of US$4.26 million into its wholly-owned Singapore subsidiary Manila Water Asia Pacific Pte. Ltd (MWAP), the Manila Bulletin said, citing a company disclosure to the Philippine Stock Exchange.

The MWC executive committee has given the go-ahead for the additional equity infusion in MWAP to be used to fund further investment in Vietnam, according to the Manila-based newspaper.

MWC is operating in Vietnam through such affiliates as the Thu Duc Water B.O.O Corp., Kenh Dong Water Supply JSC, and Saigon Water Infrastructure Corporation, all based in Ho Chi Minh City.

The MWC executive committee has also green-lighted $9.05 million in additional funding in its wholly-owned domestic subsidiary Manila Water Philippine Ventures Inc., according to The Philippine Star.

Manila Water, which distributes water to half of the households in Metro Manila, the most populous region of the country, is the water unit of Ayala Corporation, the oldest and largest conglomerate in the Philippines.

In 2008, Manila Water secured a five-year water leakage reduction deal, which was later expanded to include a bulk water supply agreement, with state-owned Saigon Water Infrastructure Corporation, according to Nikkei Asian Review.

The recently approved additional funding came at a time when Manila Water is looking for “value-creating platforms across the Philippines and in the region,” according to chairman Fernando Zobel de Ayala.

"We believe that Vietnam and Myanmar, as well as Indonesia, serve as potential growth areas for Manila Water,” the chairman said in a speech at the company’s annual shareholder meeting in April.

Manila Water’s total shareholder return was at 36 percent at the end of 2014, as the company’s new business initiatives in Boracay, Clark, Laguna and Vietnam continue to grow, collectively posting a 34 percent increase in billed volume, Ayala said.

“Outside the Philippines, we see great potential to expand our presence in Vietnam through our affiliate, Saigon Water Infrastructure Corporation, with its pipeline of projects in and around Ho Chi Minh City,” he said in the speech obtained by Tuoi Tre News.

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