Aboitiz group’s 2023 spending to focus on infra, clean energy

MANILA, Philippines  – The Aboitiz family-led conglomerate Aboitiz Equity Ventures Inc. is lining up expansion projects across the group, principally for renewable energy and infrastructure, as it boosts capital spending by 10 percent to P78 billion in 2023.

The bulk of the identified spending is for Aboitiz InfraCapital (AIC), which is budgeting P32 billion for the year or 42 percent of the group-wide spending.

“This will go toward the continuous expansion of AIC’s economic estates, telecommunication towers business, as well as new investments in digital infrastructure,” Aboitiz Equity said in the filing.

“Additionally, the capital will also be utilized for the completion and maintenance of Apo Agua, the Infrastructure unit’s bulk water project in Davao City. Once operational, Apo Agua is expected to supply over 300 million liters of safe and sustainable water to Davaoeños daily.

The figure was lower than the P42 billion spent by the subsidiary in 2022, a period that marked its entry in the airports sector after acquiring a stake in the Mactan Cebu International Airport project.

“By embracing a bold vision of sustainable progress, we are not only transforming our business but also making a positive impact on our country,” Aboitiz Equity president and CEO Sabin M. Aboitiz said in a statement.

The group also suggested significant capital spending for the power sector but no amount was identified.

Aboitiz Equity said power investments will include the development of “various solar, geothermal, hydro, and wind projects.”

“There will also be investments for improving the efficiency and reliability of existing baseload plants critical in powering the country’s economic progress, as well as for various land acquisitions, new substations, and new meters for its distribution business,” the group said.

Union Bank of the Philippines is allocating over P5 billion for capital spending in 2023.

This will be used to boost digital channels and features and for its integration with the newly-acquired assets of Citi’s Philippine consumer business.

Food and agriculture-focused companies Pilmico and Gold Coin will spend P5 billion this year. Investments will include the expansion of its feed mills in Long An, Vietnam and Yunnan, China.

Aboitiz Land is also spending P3 billion to complete new residential projects.

“Aboitiz Land maintains a bullish outlook on the growth of the business as the company maximizes its use of property technology in construction and finance,” the group said.

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