Thursday, January 19, 2017

Philippines: Ayala Will Use Foreign Financing to Buy Chevron's Geothermal Assets

Ayala looking to retain capital spending budget (BusinessWorld Online Edition)

Chief Sustainability Officer and Finance Group Head Jose Teodoro K. Limcaoco noted that Ayala Corp. will depend on foreign financing for the acquisition of the geothermal operations of Chevron Global Energy, Inc. in Indonesia and the Philippines. Hence, the conglomerate managed to keep its capital expenditures at year-ago levels.

Ayala announced last month that AC Energy signed agreements with Chevron, Union Oil Co. of California and their relevant affiliates for the acquisition of the geothermal assets at an undisclosed price.

“Chevron is actually quite interesting because, while it looks big on the surface, we have been able to get financing but, of course, we have partners -- that’s not all ours. Our share in Indonesian and Philippine assets is a manageable amount for us,” Mr. Limcaoco said.