First Gen secures P20 billion loan

MANILA, Philippines — Lopez-led First Gen Corp. has secured loans worth P20 billion from two local banks to finance the company’s expansion.

First Gen, in a stock exchange filing, said it signed term loan agreements with each of BDO Unibank Inc. and Bank of the Philippine Islands.

Proceeds from the loans will be used by the clean and renewable energy provider as funding for its growth projects, including the acquisition of the 165-megawatt (MW) Casecnan hydroelectric power plant (CHEPP), as well as for other general corporate requirements.

The CHEPP is a run-of-river type of power facility located in Pantabangan, Nueva Ecija.

First Gen subsidiary Fresh River Lakes Corp. last May was declared by the Power Sector Assets and Liabilities Management Corp. (PSALM) as the winning bidder for the sale of CHEPP.

First Gen president and COO Francis Giles Puno earlier said the company expects the closing and turnover by PSALM of the power facility in early 2024.

“We are honored by and grateful for the confidence that the lenders have placed in First Gen. The fresh financing will be used to fund the acquisition of CHEPP, which is vital to our transition toward a decarbonized and regenerative future,” First Gen chief financial officer Emmanuel Singson said.

First Gen is a leading independent power producer in the country that primarily utilizes clean and indigenous fuels, such as natural gas, geothermal energy from steam, hydro-electric, wind and solar power.

The company, which has over 20 years of experience in power development, has some 3,482 MW of installed capacity in its portfolio, which accounts for 19 percent of the country’s gross generation.

It is part of the Lopez Group of Companies and a subsidiary of First Philippine Holdings Corp.

Charles Rodriguez, executive vice president and group head for Institutional Banking Group of BDO, said the company remains committed to a sustainable future as it provides access to capital to renewable energy projects, which the bank considers as a priority sector in financing.

“First Gen will help in power generation in the community as it uplifts the lives of Filipinos while protecting the environment. Looking forward to a robust and longer-term business relationship with First Gen,” Rodriguez said.

BPI executive vice president and institutional banking head Juan Carlos Syquia said the bank is committed to promoting sustainability and is always eager to support its clients’ sustainability initiatives.

“We are glad to have done so by providing First Gen with more innovative financial solutions and improve the quality of life in the communities First Gen operates in and in the communities it serves. This forms part of our vision to build a better Philippines – one family, one community at a time,” Syquia said.