THE Ayala group increased its programmed capital expenditure (capex) for 2017 to P185 billion from P174 billion last year to support its aggressive plans for its power, industrial technologies, healthcare, and education businesses.
In a statement on Thursday, Ayala Corp said the higher budget is also meant to support increased spending for its main businesses in real estate, telecommunications, and water.
Ayala Land Inc. (ALI) will take up the bulk or P88 billion of the total budget for its residential, offices and leasing projects.
Globe Telecom Inc. will account for P37.5 billion of the spending to ramp up its data network and upgrade infrastructure.
Power unit AC Energy will get P21 billion to fund its expansion plans while P20 billion will go to Manila Water Company Inc. for its Manila concession and expansion outside of Metro Manila.
The balance of P18.5 billion will be deployed across AC Industrials, Bank of the Philippine Islands (BPI), AC Health, and AC Education.
“The aggressive capital spending we have programmed this year reflects the Ayala group’s continued optimism in the domestic environment,” Ayala Chairman and Chief Executive Officer Jaime Augusto Zobel de Ayala said.
“While we remain mindful of macroeconomic indicators that may affect the overall business landscape, our business units continue to perform well and carry out their strategic direction for 2020,” he added.
This year’s spending budget will be funded by internally generated cash and a P30-billion planned borrowing in the first half of the year.
AC holds the Ayala family’s businesses in water (Manila Water Company Inc.), telecoms (Globe Telecom Inc.), property (Ayala Land Inc.), semiconductors (Integrated Micro-Electronics Inc.), banking (Bank of the Philippine Islands), infrastructure (AC Infrastructure Holdings Corp.), power (AC Energy Holdings Inc.), automotive (Ayala Automotive), healthcare (AC Healthcare Holdings Inc.), and education (LiveIt Investments Ltd.), among others.