LISTED conglomerate GT Capital Holdings Inc. set a capital expenditure budget of P57 billion for this year, higher than last year’s capex budget of P50 billion, a company official said.
In an analyst briefing on Tuesday, GT Capital chief financial officer Francisco Suarez Jr. told reporters that the company is earmarking P57 billion for capital spending this year which will already include spending for its property development subsidiaries.
“But that includes spending for Federal Land and for Pro-friends. That includes development of on-going projects,” Suarez said. “Normally, those are removed to only include the landbanking and commercial retail development,” he said in a mix of English and Tagalog.
Suarez noted that last year’s actual capital spending was at around P48 to P49 billion.
He said part of the capital spending will be for the retooling of its automotive brand, Toyota Motor Philippines Corp.
“What is indicated in the Toyota capex is just the Innova retooling, the full model stage,” Suarez said.
Last November, GT Capital said it was looking to boost its capex budget to P60 billion, slightly higher than the P57 billion the company had announced.
“That was our preliminary capex. I remember mentioning that in November. But of course the year was not yet finished then and [now]it’s 2016, so we had to firm up the number. So right now, what we presented today is close to final,” Suarez said.
Suarez noted that the capex budget for this year has already been pre-funded.
“Actually, for the capex for this year, more or less all of those are already funded,” Suarez said.
“In the case of our capex for GT Capital, we already raised the second funding for the payment for Pro-friends. So as early as last year, we already raised that. So that is already pre-funded.”
For its other subsidiaries such as Toyota and Metrobank, Suarez said there is no need to raise new funding as the capex will be internally-generated.
“In the case of Toyota, Metrobank, it’s already funded by internally-generated funds. So no need to raise funding,” Suarez said.