Corporate News

FDC eyes P33-billion capex for 2014

Posted on December 14, 2013

THE HOLDING firm of the Gotianun family has set aside P33 billion for next year's capital expenditure, bulk of which will be spent for its real estate venture.

"Filinvest Development Corp. (FDC) is expected to spend more than P33 billion on capital expenditures in 2014," the listed conglomerate said in a disclosure on Friday. It did not state the capex programmed for this year or the annual rate of increase.

Filinvest Land Inc., the real estate subsidiary, plans to spend some P20 billion for various residential projects as well as land banking, FDC said.

Around P6 billion will be spent for power unit FDC Utilities, Inc., while P2 billion has been allocated for hotel projects of Filinvest Alabang, Inc. and the expansion of East West Banking Corp.

Filinvest Land last month raised P7 billion from a bond offering, while its parent intends to sell P10 billion in fixed-rate debt papers next quarter to bankroll the capex.

Shares of FDC dropped by 18 centavos or 4.17% to P41.14 apiece on Friday from P4.32 on Thursday. -- Cliff Harvey C. Venzon