Aboitiz InfraCapital targets to expand core segments, stabilize other businesses

By Ashley Erika O. Jose, Reporter

ABOITIZ InfraCapital, Inc., the infrastructure arm of the Aboitiz group, is working to expand its core segments and stabilize its other businesses to match the performance of its mature assets, the company’s president said

“I think with most of our operating assets already in place, we will see all the other sectors of our business also mature and become stable sources of cash and revenues,” Aboitiz InfraCapital President and Chief Executive Officer Cosette V. Canilao said in an interview with BusinessWorld.

The company focuses on four segments such as economic estates, water, digital infrastructure, and transport and mobility.

With over 20 years of combined experience in public-private partnerships, investment and corporate banking, crisis management and restructuring practice, Ms. Canilao hopes to lead the strategic growth of the company by advancing each of its key segments. 

Founded in 2015, Aboitiz InfraCapital was initially set up to specifically participate in the government’s infrastructure development program, she said.

“Aboitiz as a group was already into infrastructure through our power arm. The natural progression of the group was going to non-power infrastructure projects,” Ms. Canilao said.

“[We have] a diversified portfolio and some of the mature sectors can actually fund those greenfield projects that we are doing. When we started, we only had our estate water as our operating assets,” she said.

Aboitiz InfraCapital’s water units are Apo Agua Infrastructura, Inc. and Lima Water Corp. It also has a minority stake in Balibago Waterworks System, Inc., a provincial water utility system.

The company hopes to advance its water business and digital infrastructure segments.

“Airport and economic estates [are doing well] but the two others are catching up. Most likely in three to five years’ time we will have our four business pillars contributing significantly to the revenues as well as the cash position,” Ms. Canilao said.

DIGITAL SPACE
In 2022, Aboitiz InfraCapital signed a partnership with EdgeConneX for its plan to start building its five-megawatt data center.

“But we are still looking at how we can do this. We are not building at risk. So, our partner  EdgeConneX is looking at the interest from hyperscalers before we can start building,” she said.

For now, the company is looking to develop its data center in Luzon.

“We’re being very careful about this. We’ve seen the development of technology, which is a technological shift across the globe. We are just making sure that when we build, it is the right time to do it. We have been closely monitoring the market,” Ms. Canilao said. 

“Most of the data centers that are being built right now are really for retail or enterprise, not for hyperscalers,” she added.

TRANSPORTATION PROJECTS
Ms. Canilao, who also runs marathons, said that her passion for running partially influences the company’s initiatives and advancements in mobility and transportation projects.

In 2022, Aboitiz InfraCapital finalized a deal with Megawide Construction Corp. and GMR Airports International B.V., allowing it to acquire shares in GMR-Megawide Cebu Airport Corp., the company behind the Mactan-Cebu International Airport.

“The airports, with our acquisition of Mactan Airport, have also become one of the bigger operating assets that we have, and we are hoping to catch up with trying to capture the resurgence in travel through that airport,” she said. 

She said the company is keen on improving the country’s regional airports.

“I believe that the government is looking at bidding out other airports, and we will definitely look into it,” Ms. Canilao said

The infrastructure arm of the Aboitiz group has submitted unsolicited proposals for the operations, maintenance, and development of New Bohol-Panglao International Airport, Bicol International Airport, and Iloilo International Airport.

Earlier, the Transportation department said that the company will be awarded the contract to operate, maintain, and upgrade the Laguindingan International Airport in Mindanao. 

Aside from airports, Aboitiz InfraCapital is also willing to participate in other government projects, Ms. Canilao said.

“Where it makes sense for us, we will look at it… But if it’s not strategic to the assets that we have right now, we will probably pass on it,” she said.

“Infrastructure projects are very long term in nature, and the cash flow actually comes towards the end because of the nature of infrastructure,” she added.

For now, Aboitiz InfraCapital is focusing on growing its other businesses to match the performance of its mature assets, Ms. Canilao said, adding that going public remains a possibility.

“Maybe in three to five years. Once the various sectors of Aboitiz InfraCapital have stabilized already and more of our assets are really operating, then we will consider all types of capital ways,” she said.