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AEV Chief Financial Officer Jose Emmanuel HiladoAboitiz Equity Ventures, the investment holding company of the Aboitiz Group, is increasing its capital expenditure budget by 37 percent in 2025 to ₱105 billion while aiming to raise ₱119 billion to fund these investments as well as pay maturing obligations.
In a media briefing after the firm’s annual stockholders’ meeting, AEV Chief Financial Officer Jose Emmanuel Hilado said a majority of the capex will be deployed by Aboitiz Power Corporation for its renewable energy pipeline and to support their distribution business.
“The next biggest chunk is allocated to Aboitiz InfraCapital to fund their expansion in economic estates and tower acquisitions. Then, the rest will be in Unionbank for their digital infra and, lastly, in Aboitiz Foods for swine farms and development of greenfield R&D farms,” he added.
Hilado said the capex will be funded by a combination of loans and bonds and, “on top of what we have to fund in terms of the expansion, we also have a maturing AEV bond of about ₱5 billion and the callable bond of about ₱9 billion.”
“But, we haven't really decided on the allocation (for bonds and loans), because the direction of interest rates, although we know that it's a downward trend, is still subject to volatility. And what we'll do is we'll maximize whatever it's cheapest for us now, whether it's bonds or loans,” he noted.
Aboitiz Foods President and CEO Tristan AboitizAboitiz Foods President and CEO Tristan Aboitiz said “we're studying expansions in East Malaysia in 2025 and this will entail us building out an integrated feed-to-farm business model, together with a joint venture partner in that country.
“We're also in the process of refurbishing various finisher farms of ours in Tarlac to support our sow repopulation efforts here in the Philippines.”
Aside from these, he said “we're studying expansion opportunities in Vietnam at our Long Han facility which is close to full capacity already as of this point, as well as in the Philippines and Indonesia, where growth in feed volumes have been better than expected over the past 12 months or so.”
Aboitiz said they have also allocated capex for the construction of research and development farms in Malaysia, Vietnam and the Philippines related to its feed business for this year.
Aboitiz Land Inc. President and CEO Rafael Fernandez de Mesa Meanwhile, Aboitiz Land Inc. President and CEO Rafael Fernandez de Mesa said they are now looking at new projects within the Lima Estate to launch in the coming years, as well as in the TARI Estate in Tarlac.
He explained that they will be launching new projects in Lim Estate because, “Currently, there's an ongoing interchange being built that will give direct access to Lima Estate, and with the villages in Lima Estate now nearing the end of its inventory.”
Aboitiz InfraCapital President and CEO Cosette CanilaoAboitiz InfraCapital President and CEO Cosette Canilao said “AIC continues to expand Lima and TARI estates to meet rising demand from both global and local locators, we are investing heavily in ecosystem infrastructure upgrades” to boost value as well as to meet the demand for smart technologies across the estates.
The firm is also embarking on a two phase expansion of the Laguindingan International Airport that will scale up capacity to 6.3 million passengers a year.
“Phase One includes increasing the capacity from 1.6 million to 3.9 million passengers per annum, and then, Phase Two, which would be around two to three (years) from completion of Phase One, will also scale up the airport's capacity from 3.9 to 6.3 million per annum,” said Canilao.
She added that, “we are also introducing progressive enhancements in infrastructure as well as passenger services and safety. We'll be introducing those in the coming months.”
