MANILA, Philippines - Cebu-based conglomerate Aboitiz Equity Ventures Inc. (AEV) is raising P2 billion for the construction of a $50-million biomass power facility, its first in the country.
In a regulatory filing, AEV said subsidiary Aseagas Corp. “entered into a notes facility and security agreement in the amount of up to P2 billion with the Development Bank of the Philippines.â€
Proceeds of the corporate notes will finance the construction of Aseagas’ first biomass renewable energy plant to be located in Lian, Batangas, AEV said.
This year, Aseagas will start the construction of a $50-million liquid biomethane plant that will produce transport fuel from organic waste.
The plant, which will be completed in 18 months, will have a capacity of around 9,000 metric tons of biomethane per year.
AEV is one of the largest conglomerates in the country. It has investments in power (Aboitiz Power Corp.), banking (Union Bank of the Philippines), food manufacturing (Pilmico Foods Corp.) and property development (Aboitiz Land Inc.).
The weak performance of the power business and lower earnings contribution from the banking unit dragged AEV’s earnings in the first quarter.
AEV said its consolidated net income slipped 29 percent to P4.9 billion in the first three months of the year, translating to an earnings per share of P0.88 apiece. Adjusting for these one-off items, AEV said its core net income dropped a fifth to P4.4 billion from a year ago.