Aboitiz InfraCapital raises capex to P8.8B for expansion

By Ashley Erika O. Jose, Reporter

ABOITIZ InfraCapital, Inc. (AIC), the infrastructure arm of the Aboitiz group, is raising its capital expenditure (capex) to P8.8 billion this year from P4.1 billion in 2025 to fund expansion across its airports, water, and telecommunications tower businesses.

“This will support growth and operational initiatives across our airports, water and Unity Digital Infrastructure, Inc.,” Aboitiz InfraCapital President and Chief Executive Officer Cosette V. Canilao said during Aboitiz Equity Ventures, Inc.’s (AEV) annual stockholders meeting on Monday.

Aboitiz InfraCapital is the infrastructure arm of listed conglomerate Aboitiz Equity Ventures, Inc., which also has interests in power, banking, food, infrastructure and artificial intelligence.

In a media release, AEV said it is earmarking P8.8 billion for infrastructure, water, and airports investments this year.

“While there are external headwinds, we expect the airport platform to remain a key contributor to growth for AIC this year,” Ms. Canilao said.

Aboitiz InfraCapital operates three of the country’s seven privatized airports: Mactan-Cebu International Airport, Laguindingan International Airport and Bohol-Panglao International Airport.

Ms. Canilao said airport operations continue to recover, driven by improving passenger traffic, strong operating performance and increasing commercial activity, despite geopolitical tensions in the Middle East.

She said Mactan-Cebu International Airport recorded its highest monthly passenger traffic in January this year, with first-quarter traffic exceeding expectations.

“The first quarter traffic was ahead of expectations. That said, we are closely monitoring the Middle East situation. If the conflict persists and fuel prices remain elevated, we may see some impact from early June onward,” Ms. Canilao said.

She added that any prolonged escalation in the Middle East could lead to higher airfares, route adjustments and reduced flight frequencies.

While some airlines have reduced flight frequencies, Dubai-based Emirates has resumed its daily Cebu service, helping offset the impact, she said.

Aboitiz InfraCapital is also exploring opportunities to expand its airport portfolio.

“We’re always on the lookout for new opportunities to add to our portfolio of airports where we can add more value. So, we are planning, but we know that there are very limited airports that might go to market. We are hoping that the government will also look at the other airports,” Ms. Canilao said.

Separately, the company said it is working to finalize a strategic partnership with Global Infrastructure Partners, a US-based infrastructure fund manager owned by BlackRock, Inc.

Aboitiz Equity Ventures earlier said the deal involves the acquisition of a 40% stake in Aboitiz InfraCapital by Global Infrastructure Partners. Once completed, the company expects to leverage the fund’s international network.

Global Infrastructure Partners manages more than $183 billion in infrastructure assets across sectors such as energy, transport, digital infrastructure and water, and holds stakes in major assets including London’s Gatwick Airport and Australia’s Port of Melbourne.