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Thursday, March 28, 2024

Aboitiz Group increases 2019 capex to P81b

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Conglomerate Aboitiz Equity Ventures Inc. earmarked P81 billion for 2019 capital expenditures, up by 65 percent from P49 billion it spent in 2018.

AEV said in a presentation during a recent analysts’ briefing that P51 billion, or 63 percent of the total, would be allotted for the expansion of the power generation business.

The remaining 37 percent or P30 billion will be allotted for the group’s non-power generating businesses, including real estate, cement, banking, bulk water project, food and infrastructure.

It said funding for this year’s capital expenditures would be partially secured from the group’s planned bond offering.

AEV early this month said it would issue up to P3 billion worth of fixed retail bonds with an oversubscription option of up to P2 billion in the first half of 2019.

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This represents the first tranche of its P30-billion bond shelf registration program.

The company appointed BDO Capital & Investment Corp. and First Metro Investment Corp. as the joint issue managers and underwriters for the bond offering.

AEV said it would list the bonds with the Philippine Dealing and Exchange Corp.

The last time AEV raised capital from the local bond market was in 2015 when it sold P24 billion worth of fixed-rate bonds that would mature in October 2020, 2022 and 2027.

AEV’s food unit Pilmico International acquired a  75-percent stake in one of Asia’s largest privately owned agribusiness corporations, Gold Coin Management Holdings Limited, for $334 million in 2018.

The acquisition paved the way for AEV to expand its animal feed footprint in the region.

Gold Coin is a major producer of animal feeds. It operates livestock and aqua feed mills across 11 countries in Asia.

AEV started construction of the P12.6-billion bulk water project in Davao City last year.  The project will provide the Davao City Water District with more than 300 million liters per day of safe water. 

Apo Agua plans to commence operations by 2021.

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