GT Capital allots P40-B for 2013 capex
MANILA, Philippines - GT Capital Holdings Inc., the flagship investment vehicle of banking tycoon George S.K. Ty, is almost tripling its capital expenditures to P40 billion this year.
The massive spending will support the company’s target of growing its revenues and profits by double digits this year, a top company executive said.
GT Capital president Carmelo Maria Luza Bautista said their spending program this year is a huge increase from P15 billion last year.
“Bulk will be for property and power. We have expansion plans for the power and other new projects,” Bautista told reporters on the sidelines of the Philippine Investment Summit organized by First Metro Investment Corp.
Given the robust Philippine economy, GT Capital said it expects better performance from its various businesses this year.
Bautista said earnings and revenues of GT Capital will likely post double digit growth given higher income contributions from its operating units.
In the nine months to September last year, the conglomerate reported a 107-percent surge in its consolidated net income to P5.3 billion from a year ago as consolidated revenues more than tripled to P16.7 billion from P5.4 billion the previous year.
GT Capital is into banking (Metropolitan Bank & Trust Co.), property (Federal Land Inc.), automotive (Toyota Motor Philippines Corp.), power production (Global Business Power Corp.) and insurance(Philippine AXA Life Insurance, a joint venture with the global insurance giant AXA Group).
For its fundraising plans, Bautista said the company is still waiting for the Securities and Exchange Commission’s approval for a bond sale.
In December, GT Capital said it is issuing up to P10 billion worth of fixed-rate bonds to support its capital expenditure program. Early this month, the firm raised P14.3 billion through an overnight share sale to institutional investors.
GT Capital raised P21.6-billion from selling primary and secondary shares in its initial public offering last year. Global investment bank UBS AG also exercised the option to buy P2.8 billion more shares from the overallotment option.