MANILA, Philippines — Diversified conglomerate San Miguel Corp. (SMC) intends to earmark as much as P700 billion for capital expenditures over the next five years to expand its core and new businesses, chief finance officer Ferdinand Constantino said.
Constantino said the planned capex does not include the proposed international airport in Bulacan which is seen to cost another P700 billion.
SMC submitted an unsolicited proposal for the airport project last year.
Likely getting the biggest chunk of the amount are the conglomerate’s food and infrastructure businesses, SMC senior vice president and head of treasury Sergio Edeza said.
Edeza said substantial amounts would also go to SMC Global Power Holdings Corp. and San Miguel Brewery Inc. which is expanding its facilities.
“The capex as usual will be funded by 70 percent debt and 30 percent equity,” Edeza said.
Edeza said SMC would be tapping all available funding options such as bank loans, preferred share issuance, and cash from operations.
In addition, SMC may also opt to offer more bonds, Edeza said.