First Phl Holdings raises borrowing target to P6B

MANILA, Philippines - Lopez-led First Philippine Holdings Corp. (FPHC) is increasing the amount of fresh capital it plans to secure through corporate loans which would fund power generation and property development projects.

In a regulatory filing, the listed holding firm said its board of directors upgraded the debt fundraising target to P6 billion from P5.2 billion.

“This was due to the very positive response from the funders resulting in an over subscription of approximately 150 percent,” FPHC said.

“With this approval, FPHC would proceed to negotiate and execute loan agreements with the participating banks,” it added. The company hired BDO Capital & Investment Corp. as the sole arranger for the loans.

Hence, FPHC stands to raise P7.8 billion for this year, up from the original P7 billion that was approved in May. In June, the listed investment firm issued P1.8 billion worth of preferred shares.

The fundraising program would “finance direct investments and/or acquisitions...and to fund other general corporate purposes,” FPHC earlier said.

FPHC operates the power business through units Energy Development Corp. and renewable energy firm First Gen Corp. The company plans to increase its generating capacity by 400 to 500 megawatts in the next few years.

It is also into property development through Rockwell Land Corp., while owning a small stake in power distribution giant Manila Electric Co.

FPHC is the company behind the First Philippine Industrial Park that has more than 60 locators employing 35,000-40,000 workers in Batangas.

In the first quarter, net income of FPHC sank 42 percent to P1.02 billion from P1.78 billion as higher revenues were offset by the increase in gross expenses.