BlackRock to Acquire 40% Stake in Aboitiz Equity Infrastructure Arm Through Global Infrastructure Partners

BlackRock has made a significant move in the Philippine infrastructure sector through its subsidiary Global Infrastructure Partners, set to acquire a substantial 40% stake in Aboitiz Equity Ventures' infrastructure division, as per news reports. This strategic partnership marks a major investment in the country's growing infrastructure landscape.

BlackRock's Strategic Infrastructure Investment

Global Infrastructure Partners, which BlackRock acquired in October 2024, has secured a 40% stake in Aboitiz InfraCapital, the infrastructure arm of Philippine conglomerate Aboitiz Equity Ventures. The deal aims to enhance the financial capacity of the Philippine firm as it expands infrastructure investments across the nation. Financial terms of the transaction remain undisclosed, though the partnership brings together significant expertise and capital resources.

Aboitiz InfraCapital Asset Portfolio

Aboitiz InfraCapital manages critical infrastructure assets, most notably the Mactan Cebu International Airport. The company maintains diversified holdings across airports, power generation, industrial parks, telecommunications infrastructure, and water services. Global Infrastructure Partners brings substantial experience managing assets exceeding $183 billion across energy, transportation, digital infrastructure, water services, and waste management sectors.

Philippine Infrastructure Development Context

The partnership aligns with the Philippine government's ambitious infrastructure agenda, which targets doubling infrastructure expenditure to a minimum of 2 trillion pesos (approximately $35 billion) this year. Major projects include the 33-kilometre Metro subway project with an estimated construction cost of 489 billion pesos.

Read More: LIC Invests ₹5,000 Cr in SBI, Increases Stake Through Landmark QIP!

Leadership Vision and Company Performance

Bayo Ogunlesi, chairman and CEO of Global Infrastructure Partners, highlighted the Philippines' exciting growth potential through top-tier infrastructure development. Sabin Aboitiz, CEO and president of Aboitiz Equity, expressed enthusiasm about implementing projects that enhance lives and empower communities. Aboitiz InfraCapital reported mixed financial results in the first quarter, experiencing a loss of 207 million pesos despite a 53% increase in sales to 2.4 billion pesos.

Conclusion

The BlackRock Global Infrastructure Partners acquisition of a 40% stake in Aboitiz InfraCapital represents a significant vote of confidence in Philippine infrastructure development. This partnership positions both companies to capitalise on the country's growing infrastructure needs and government investment priorities, leveraging substantial financial resources and expertise.

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