FDC Utilities raises capital to P4B

MANILA, Philippines - FDC Utilities, a wholly-owned unit of Gotianun-led Filinvest Development Corp., has raised its capitalization to P4 billion from only P16 million to fund its re-entry into the power business.

Documents filed with the Securities and Exchange Commission show that FDC subscribed to P990 million out of the increase in capital stock of FDC Utilities.

FDC is beefing up its investment portfolio with the addition of infrastructure and utilities to further spur growth.

The Filinvest Group is one of the country’s leading conglomerates, with interests in real estate through Filinvest Land, financial and banking services (East West Banking Corp.) and sugar manufacturing (Pacific Sugar Holdings).

The group first made its presence felt in the power sector in 1995 via East Asia Power Corp. and eventually, Cebu Private Power Corp., from 1998 until 2000.

FDC aims to bring electricity and water to potential growth circles in the Philippines. It also seeks to help reduce a power shortage in Mindanao which used to suffer eight-hour rotating brownouts.

Currently, the Visayas grid demand stands at 1,325 megawatts but the existing power plants in Visayas can generate only about 1,176 MW of dependable capacity.

The group plans to develop four liquefied natural gas (LNG) plants across the country with a total capacity of 1,500-1,800 MW over the next five years. This initiative will require an investment of around $1.8 billion.

 Power is seen eventually accounting for at least a third of FDC’s business in the next five years.