BlackRock, the $10-trillion (P560 trillion) asset manager led by American billionaire Larry Fink, has long eyed investments in Philippine infrastructure, particularly airports.
Last year, it acquired Global Infrastructure Partners (GIP), which was one of the partners in the super consortium bidding for the P170 billion privatization of Ninoy Aquino International Airport, the country’s busiest gateway.
Tycoon Ramon S. Ang’s San Miguel Corp., with Incheon Airport of South Korea, ultimately won that exercise, but the global fund manager continued to engage with Filipino partners, principally super consortium member Aboitiz Group, which is assembling the country’s widest network of regional airports.
Those discussions are bearing fruit, with GIP moving closer to sealing a deal to acquire 40 percent of Aboitiz InfraCapital, its parent firm Aboitiz Equity Ventures said in a stock exchange filing on Thursday.
President Ferdinand Marcos Jr. personally attended a high-level meeting in Washington D.C., United States, with Aboitiz Group president and CEO Sabin M. Aboitiz and GIP chair and CEO Bayo Ogunlesi, which coincided with a tariff deal with President Trump.
Vote of confidence in the Philippines
“This collaboration marks a strong vote of confidence in the Philippines’ future. With global partners like GIP working alongside respected Filipino firms such as Aboitiz, we can build infrastructure that is more resilient, inclusive, and forward-looking,” Marcos said in a statement from the Aboitiz Group.
What is GIP buying?
GIP, which specializes in energy, transport, digital infrastructure and water and waste management sectors, has over $183 billion in assets under management.
AIC owns and operates the following assets:
• Airports – full ownership of Mactan-Cebu International Airport and concessions to operate Laguindingan and Bohol-Panglao International Airports.
• Water infrastructure – estate water units and Apo Agua, the country’s largest bulk water facility in Davao serving over 1 million residents, plus a minority stake in Balibago Waterworks.
• Telco towers – through Unity Digital Infrastructure, a joint venture with Partners Group, building cell towers nationwide.
• Data centers – via a partnership with EdgeConneX, developing hyperscale-ready facilities in the Philippines.
• Economic estates – LIMA in Batangas, MEZ2 and West Cebu in Cebu, and TARI in Tarlac, spanning over 2,000 hectares.
While GIP is taking a minority stake, the Public Service Act amendment that took effect in 2022 lets foreign investors fully own transport assets like airports.
This is not GIP’s first PH investment
GIP owns Vena Energy, a major solar and wind developer in the Philippines with projects in Rizal, Isabela, and Nueva Ecija.
It’s currently monetizing its Philippine portfolio, with plans to sell its stake in Vena, Reuters had reported early this year.
Management’s view
“We are honored to explore this opportunity with Global Infrastructure Partners,” Aboitiz said in the statement.
“Our shared vision of modern, world-class infrastructure aligns with the country’s ambitions for progress,” he added.
AEV shares rose 1.7 percent to P33.30 each while the broader stock exchange index slipped 0.26 percent by the noontime break on Thursday.
Deal expert’s view
“GIP’s entry signifies the remarkable potential for infrastructure investments in the Philippines. The choice of Aboitiz is very strategic,” Juan Paolo Colet, managing director at China Bank Capital, said in a text message to InsiderPH.
“GIP is not only buying into an existing high-quality infrastructure portfolio, but it is also creating a formidable partnership that can expand aggressively in the local infrastructure space,” he added.
Banks ready to back Aboitiz-GIP
“There is ample liquidity and appetite among the leading domestic banks to back the investment plans of the Aboitiz-GIP tandem,” Colet said.
“Infrastructure investment has a significant multiplier effect on the economy, so the sustained flow of capital into infrastructure projects is supportive of economic growth and national development,” he explained.
Aboitiz sells down stake amid acquisitions
The deal with GIP marks a rare asset divestment for Aboitiz.
In recent years, it has been on an acquisition spree, buying Citi’s Philippine consumer business via UnionBank, a 40-percent stake in Coca-Cola Beverages Philippines, and full ownership of Mactan-Cebu International Airport from Megawide Construction Corp. and GMR.
A stock market analyst, who requested anonymity, said this might also be a strategic move by Aboitiz to pay down some of its debts while interest rates remain elevated.
During the first quarter of 2025, Aboitiz InfraCapital posted a P207-million loss, reversing a P72-million profit a year earlier. This was mainly due to higher interest expenses from increased debt for expansion, AEV said in its latest financial report.
What’s next?
The market is now waiting for the next move on Aboitiz-GIP, and whether other assets in the group are on the table.
For their part, GIP is looking forward to the tie-up.
“The Philippines has compelling growth prospects, which can be further enhanced by developing world-class infrastructure,” Ogunlesi said in the statement.
“We look forward to working with our partners at Aboitiz Group to leverage our combined capabilities to deliver best-in-class infrastructure services to the people of the Philippines,” he added.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
