Filinvest Development Corp. (FDC), the listed holding company of the Gotianun family, said it will nearly double its planned capital spending for 2024 to a range of P20 to P25 billion from P13 billion it spent last year to support the expansion of its core businesses.
FDC chief finance officer Brian Lim said the bulk of this year’s capital spending, or 60 percent, would be allotted for the group’s property unit Filinvest Land Inc., (FLI), which will launch more projects this year.
Another 15 percent will be spent by its power generation subsidiary, which will develop more renewable energy projects, including a 20-megawatt solar project in Misamis Oriental and a 12-MW hydro project in Cebu.
Around 15 percent of capital expenditures will be set aside for the hospitality group, which is adding more hotels across the country including Baguio and Clark and the renovation of Mactan hotel. The rest of 10 percent will be for other businesses and digitalization initiatives.
FDC president and chief executive Rhoda Huang said the funding for this year’s capital expenditures would come primarily from internally-generated funds and borrowings.
The conglomerate in February raised P10 billion from the issuance of fixed-rate bonds to partially finance capital expenditures and repay existing debts.
The bonds were issued as first tranche of the company’s P32-billion bond shelf registration program approved by the Securities and Exchange Commission in 2023.
Huang said the group has no plans to issue a second tranche this year.
The conglomerate has interests in real estate, financial services, power generation, sugar milling and infrastructure.
It recently ventured into renewable energy, water projects, hospitality and digitalization projects and is looking at opportunities in project expansions, adjacent businesses or new ventures including urban solution and renewables.