Aboitiz Equity Ventures, Inc. (AEV) has signed a P10-billion loan with Metropolitan Bank & Trust Corp. (Metrobank) to pay maturing bonds and support capital expenditures.
The holding firm told the stock exchange on Monday it had executed a seven-year term loan with Metrobank. Proceeds from the deal will refinance maturing bonds, finance capital expenditures and fund general corporate requirements.
AEV previously said it was allocating P73 billion for capital expenditures this year, an increase of 37% from 2019’s spending of P53 billion. The budget will support expansion plans across AEV’s business units.
Aboitiz Power Corp. will take P41 billion for its GNPower Dinginin plants and new businesses; Aboitiz InfraCapital, Inc. will have P16 billion for its water, airport and common tower ventures; AboitizLand, Inc. will get P11 billion for land banking; Pilmico Foods Corp. will have P3 billion for new businesses, expansion and upgrades; and Union Bank of the Philippines will take P2 billion for digital transformation and expansion.
AEV’s earnings in 2019 slipped 1% to P22 billion, weighed down by a double-digit profit decline in its power unit due to power outages.
Shares in the company at the stock exchange gained P5.10 or 12.78% to P45 each on Monday. — Denise A. Valdez