Conglomerate Aboitiz Equity Ventures Inc. obtained a P10-billion term loan facility from Metropolitan Bank & Trust Co. that will partially refinance maturing debts and fund capital expenditure requirements.
Aboitiz Equity said Monday in a disclosure to the stock exchange it signed an agreement over the seven-year term loan with Metrobank.
“The proceeds of the loan will be used to refinance AEV’s maturing bonds, finance its capital expenditures, and for general corporate requirements,” the conglomerate said.
The group earlier said it would spend P73 billion in 2020 to sustain expansion plans to boost the economy despite uncertainties over the new coronavirus (COVID-19) pandemic.
This year’s capital spending plan is a 37-percent increase from P53 billion spent in 2019. the conglomerate allocated P41 billion to Aboitiz Power Corp. from the P73-billion spending plan.
About 80 percent of the Aboitiz Power capital expenditures will be used to complete the GNPower Dinginin Power Plants as well as other new businesses.
Infrastructure unit Aboitiz InfraCapital Inc. earmarked majority of its P16-billion allotted capital spending for the construction of water businesses and its foray into airports and common tower businesses.
Unit Apo Agua Infrastructura Inc. in 2019 spent P3 billion. Once online, the Davao bulk water project will supply 300 million liters of water daily to the Davao City Water District for the benefit of over a million Davaoenos.
Meanwhile, Republic Cement Group is anticipating a nine-percent business growth this year amid stable cement prices..
Aboitiz Land Inc. is expected to spend P11 billion mainly for land banking efforts as it continues to expand property developments in several parts of the country.
The Aboitiz Group is allotting the balance for the provisions of the remaining strategic business units.
Pilmico Food Group allocated nearly P3 billion for new businesses, expansion and upgrades, and operating expenses, while Union Bank of the Philippines will sustain investment efforts in digital and branch transformation endeavors. The bank is earmarking around P2 billion for expansion and upgrades and operating expenses.
The Aboitiz Group said it put in place a business continuity plan in place to mitigate the impact of the COVID-19 crisis. It adopted travel, quarantine and hygiene measures based on the guidelines set by the Department of Health and the World Health Organization.