MANILA – First Gen Corp., through its unit First Gas Power Corp., signed a USD500-million, seven-year loan with six banks on Monday.
In a disclosure to the Philippine Stock Exchange (PSE), First Gen said it signed the loan with Bank of Commerce, Bank of the Philippine Islands, BDO Unibank Inc., Philippine National Bank, Security Bank, and Sumitomo Mitsui Banking Corp. Singapore Branch.
“The USD500 million debt facility is a testimony to the strong support and continuing confidence of our lenders in First Gen’s natural-gas business. First Gen pioneered this business about twenty years ago and it has since reached even greater heights,” said First Gen President and Chief Operating Officer Francis Giles Puno.
The company said the loan would be a repayment to the USD243 million existing debt of First Gas.
“Thereafter, the net proceeds of the refinancing will be used to pay down a portion of First Gen’s existing loans, as well as pre-fund its upcoming maturities,” it added.
First Gen is the country’s largest producer of natural gas-fired power, with some 2,011-megawatt natural gas platform.
Its facilities are located in First Gen Clean Energy Complex in Batangas City.
Its four operating natural gas-fired power plants are the 1,000-MW Santa Rita plant of First Gas, 500-MW San Lorenzo plant, 97-MW Avion peaking plant, and 414-MW San Gabriel mid-merit power plant.
The company is also working on the setting up of a USD1-billion liquefied natural gas (LNG) terminal project, which will be the first LNG terminal in the country.
Meanwhile, First Gen is also the largest shareholder in Energy Development Corp., owner and operator of geothermal, wind, hydro, and solar power facilities in the country.
It accounts for 21 percent of the country’s gross power generation or a total installed capacity of 3,471 MW.