Aboitiz Power needs $1.5B for expansion, acquisitions
Aboitiz Power Corp., the holding firm for all power generation and distribution businesses of the Aboitiz family, needs $1.5 billion to fund its expansion projects and planned acquisitions.
Erramon Aboitiz, president and chief executive officer of Aboitiz Power, said the company will borrow $1 billion, with the remaining $500 million to be sourced from equity.
Aboitiz said the funds will be used for
Aboitiz Power recently announced plans to invest $91.91 million (about P4.2 billion) in the 210-megawatt
The group’s expansion is intended to meet the increased demand for power as the economy improves and supply in certain parts of the country tightens.
Aboitiz said the company’s strategy would be to continue growing its distribution business organically and through acquisitions.
He said the group’s current power mix is 60 percent hydropower and the rest is thermal power.
Aboitiz said the company is doing a study on the viability of putting up a 600-megawatt hydro power plant at the Subic Bay Freeport Zone, which will be in joint venture with Taiwan Co-Generation Co.
The first phase, expected to be undertaken in a period of two to three years, will involve 150 megawatts to 300 megawatts and is expected to cost between $220 million and $440 million.
Aboitiz Power will also begin construction of the 42-MW Sibulan hydropower project and the 30-MW Tamugan hydropower project in the Visayas and
Aboitiz Power is the holding firm for all power generation and distribution assets of listed holding firm Aboitiz Equity Ventures Inc.
Among the companies under Aboitiz Power include Davao Light & Power Co. Inc., Visayan Electric Co. Inc., Hijos de F. Escaño, Inc., Cotabato Light & Power Co., Subic Enerzone Corp., San Fernando Electric Light and Power Co., Pampanga Energy Ventures Inc., and Aboitiz Energy Solutions Inc.
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