BlackRock will buy 40% of Aboitiz Equity Ventures’ privately held infrastructure unit, bolstering Aboitiz InfraCapital’s financial muscle as it steps up spending to modernize the country’s infrastructure.

Global Infrastructure Partners (GIP), BlackRock’s wholly owned unit, and Aboitiz Equity are in “the process of finalizing a strategic partnership,” the Philippine conglomerate said in a statement, without disclosing the amount of the potential sale.

GIP, which was acquired by BlackRock in October, has over $183 billion in assets under management. It has interests in energy, transport, digital infrastructure, water utility and waste management sectors.

“The Philippines has compelling growth prospects, which can be further enhanced by developing world-class infrastructure,” Bayo Ogunlesi, chairman and CEO of GIP, said. “We are pleased to have the opportunity to become a strategic partner of the Aboitiz Group.”

The Philippine government aims to double infrastructure spending to at least 2 trillion pesos ($35 billion) by 2028 from 1 trillion this year as it accelerates projects such as the 33-kilometer Metro Manila subway that’s estimated to cost 489 billion pesos to build.

Aboitiz Equity—the publicly traded holding company of tycoon Sabin Aboitiz and his family—has been scaling up its infrastructure investments in recent years. It has interests in airports, power plants, industrial estates, telecommunications towers and water utilities. Shares of Aboitiz Equity gained 2.3% in late afternoon trading in Manila.

“We are honored to explore this opportunity with Global Infrastructure Partners,” Sabin Aboitiz, CEO and president of the conglomerate said. “Together, we aim to deliver projects that improve lives and empower communities.”

Aboitiz InfraCapital swung to a 207 million loss in the first quarter even as sales jumped 53% to 2.4 billion pesos amid soaring finance charges on the company’s mounting debt levels. Its total borrowings almost tripled to 45.3 billion pesos as of end-2024 from a year ago.

Aside from infrastructure, Aboitiz Equity has interests in banking, financial services, food manufacturing, and real estate. With an estimated net worth of $2.2 billion, the Aboitiz family is among the wealthiest in the Philippines.