• First Gen obtains $200M loan from BDO


    LOPEZ-led First Gen Corporation (First Gen) has secured a $200 million (P9.35 billion) loan from BDO Unibank, Inc. to fund the requirements of its subsidiaries.

    In a disclosure to the Philippine Stock Exchange (PSE), First Gen said it “intends to use the proceeds from the notes as funding for its subsidiaries’ capital requirements and other general corporate purposes.”

    BDO Capital & Investment Corp. served as arranger of the loan, which carries a term of 10 years.

    Francis Giles B. Puno, First Gen president and chief operating officer, said the loan will be utilized for the refinancing and construction of their Avion and San Gabriel power plants.

    “We had a refinancing of our projects and the loan should be dollar-denominated because we have to pay dollars to our foreign contractors,” said Puno.

    First Gen is one of the biggest independent power producers in the Philippines with an installed capacity of 2,957 megawatts (MW).

    It is the primary holding company for the power generation and energy-related businesses of the Lopez Group through First Philippine Holdings Corp. (FPH).

    First Gen earlier increased its voting interest in Prime Terracota Holdings Corp. and consequently in its subsidiary Energy Development Corporation (EDC).

    This developed after First Gen purchased 13 million Series B preferred shares of Prime Terracota owned by the Employees Retirement Plan of Lopez Inc. (Lopez Inc. Retirement Fund), as well as 16 million Series B preferred shares of Prime Terracota owned by Quialex Realty Corporation.

    Prime Terracota is the effective 60 percent voting / 40 percent economic owner of EDC through its subsidiary Red Vulcan Holdings Corporation.

    The transaction gave First Gen an effective voting stake in its subsidiary EDC, which is touted as the world’s largest vertically integrated geothermal company.

    The Lopez Inc. Retirement Fund is a fund established pursuant to the provisions of the Employees Retirement Plan of Lopez Inc.

    Lopez Inc. owns a majority stake in Lopez Holdings Corporation, which in turn is the largest shareholder of FPH, the parent company of First Gen.


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