The leading Philippine conglomerate, Aboitiz Equity Ventures (AEV), has allocated PHP 73 billion (USD 1.432 billion) for capital expenditure during 2020 to show support for the Philippine government’s projects as well as mitigate the impact of COVID-19 crisis on the economy. This is a 37% boost from the PHP 53 billion (USD 1.04 billion) it spent in 2019.
AEV is engaged in several business areas such as power generation, capital ventures, Infrastructure, agri-business, financial services, among others.
- Bulk of the 2020 capex, approximately PHP 41 billion (USD 804 million), representing an increase of 17% from last year, will be invested in its flagship company, Aboitiz Power, 80% of which will be used for the completion of GNPower Dinginin Power Plants as well as other businesses in the sector.
- Aboitiz InfraCapital will receive a budget of PHP 16 billion (USD 314 million) for the construction of its water businesses and its foray into airports and common tower businesses. Its water businesses include the Apo Agua project which supplies 300 million liters of water per day in Davao City.
- AboitizLand will utilize its PHP 11 billion (USD 215 million) budget for land banking efforts as it continues to grow its property developments across the country.
- Pilmico Food Group, its agribusiness and food unit, has allocated nearly PHP 3 billion (USD 58 million) for new businesses/expansion/upgrades and operating expenses.
- Union Bank will be using its PHP 2 billion (USD 39 million) to further its investment efforts in digitalization and branch transformation including operation expenses.
(Sources: Aboitiz & Company; Philippine Information Agency; Inquirer)