Filinvest allots P20B for capex

MANILA, Philippines - Listed Filinvest Development Corp. (FDC) of taipan Andrew Gotianun has earmarked P20 billion for its capital expenditures to bankroll major property development and power projects next year.

Joseph Yap, president of Filinvest Land Inc. and director of FDC, said that next year’s budget for capital expenditures is higher compared to this year.

Of the total amount, he said the bulk or P15 billion would be used for various residential projects including landbanking activities as well as expansion of the retail and shopping mall business of Filinvest Land Inc.

Yap pointed out that up to P3 billion would be spent for power projects via unit FDC Utilities Inc.

He explained that next year’s budget could go up depending on the results of the bidding for the expansion of the country’s second largest airport where the company is participating.

According to him, the Filinvest Group together with other partners including Singapore’s Changi Airports could spend between P12 billion and P13 billion for the airport project.

Yap said FDC is raising at least P10 billion through the sale of 10-year fixed rate bonds in the first quarter of next year to fund its capital expenditures as well as working capital requirements.

He pointed out that the planned fund raising activity comes after the sucessful P7-billion bond issuance of Filinvest Land a few months ago.

Filinvest Land announced a capital spending program of P27.295 billion for  the  next 15 months starting last October until end-December next year as it aims to maintain rapid and sustainable growth.