First Gen issues P10-B pref shares

MANILA, Philippines - Lopez-led First Gen Corp. is issuing P10 billion worth of preferred shares through a private placement to fund its expansion and pay down debt.

In a disclosure to the Philippine Stock Exchange, First Gen said it started the offering of 100 million Series F preferred shares at P10 apiece yesterday and will run until today, with the issue date scheduled on July 25.

The dividend rate for the shares was set at eight percent per annum.

BDO Capital & Investment Corp. is the issue manager and lead arranger of the offer while Standard Chartered Bank and RCBC Capital Corp. are the co-arrangers.

First Gen’s parent firm, First Philippine Holdings Corp. (FPHc), said last week it was subscribing to P6 billion worth of preferred shares.

First Gen will use the proceeds to settle P5 billion worth of debts for 2012 and $130 million in 2013.

FPHC is aiming to expand its power generation capacity by 280 megawatts in the next three to four years, mainly on its renewable energy portfolio.

The company earlier unveiled plans to invest at least $400 million to build new hydroelectric and wind power facilities in the country over the next few years.

FPHC’s power portfolio is evenly split between renewable power and natural gas, which it derives from the 1,000-MW Santa Rita facility and the 500-MW San Lorenzo facility, both in Batangas province.