A SUBSIDIARY of First Gen Corp. has obtained $308 million, or about P14.82 billion, in debt repayment via six-year term loan facilities with local and overseas banks, its parent company said on Wednesday.
The sum was borrowed by FGP Corp., which owns and runs the 500-megawatt (MW) San Lorenzo natural gas-fired combined cycle plant in Batangas City, from Bank of the Philippine Islands, BDO Unibank, Inc., Philippine National Bank, and Sumitomo Mitsui Banking Corp.-Singapore Branch.
According to a regulatory filing, “the funds from the first drawing on the loans will be principally utilized to settle the amounts owing on FGP’s current debt of about $164 million.”
The company also said that the fully owned subsidiary intends to use the remaining loan debt over the following 12 months to pay for planned projects in advance.
According to First Gen President and Chief Operating Officer Francis Giles B. Puno, the combined debt facilities “is a testament to our lenders’ strong support and continued trust in First Gen’s natural-gas business.”
“We are pleased and pleased that our lenders continue to support our efforts to provide Filipinos with clean and cost-effective power,” he said.
Mr. Puno said that the company is working hard to construct the Philippines’ first temporary offshore liquefied natural gas (LNG) facility as well as more natural gas plants. The company’s natural gas portfolio now stands at 2,017 MW.
The Lopez-led firm’s portfolio includes 3,495 MW of installed capacity, accounting for 19% of the country’s total generating.
First Gen had said that it will spend $530 million on capital expenditures this year, including $120 million going toward its proposed offshore LNG plant in Batangas.
It previously recorded an attributable net income to its parent company of P4.01 billion ($84 million) in the first quarter, which was 29 percent higher year on year due to greater recurring revenues from its natural gas and renewable energy portfolios.