First Gen issues $250-M 10-year bonds

MANILA, Philippines - First Gen Corp., the power generation arm of the Lopez Group, successfully issued yesterday $250 million worth of 10-year bonds, the company said in a disclosure to the stock exchange.

First Gen said from proceeds from the Singapore-traded bonds issuance would be used for investments in power projects and other general corporate purposes.

The bonds are traded on the Singapore Exchange Securities Trading Limited (SGX).

Francis Giles Puno, president and chief operating officer of First Gen welcomed the positive investor response to the company’s fund-raising activity. 

“The positive investor response to our international debt capital markets issuance highlights the strength of First Gen’s portfolio of power assets and its growth opportunities,” he said.

First Gen tapped Deutsche Bank, HSBC and JP Morgan as joint lead managers and joint lead bookrunners for the transaction.

BDO Capital & Investment Corp. and Development Bank of the Philippines, meanwhile, served as domestic lead managers for the transaction.

First Gen subsidiary First Gas owns the 1,500 megawatt (MW) Santa Rita and San Lorenzo natural gas plants in Batangas.

In May, First Gen disclosed plans to tap the global debt market in the third quarter of the year to raise possibly $500 to $600 million to finance the second phase of its San Gabriel project in Batangas.

The company plans to spend $2.3 billion for a 1,300-MW expansion of its energy projects in the medium term through the San Gabriel project, which the company plans to develop in three phases.

The first phase of 100 MW can be completed as early as 2014 while the second phase comprising one 400-MW unit can begin construction in 2013 and be completed as early as 2016. The third phase of two 400-MW units and a liquefied natural gas receiving and regasification facility can be completed by 2018.