LOPEZ-LED First Gen Corp., through wholly-owned subsidiary First Gas Power Corp., signed on Monday a $500 million, 7-year term loan facility with six banks to refinance and manage its debt.
The lenders include Bank of Commerce, Bank of the Philippine Islands, BDO Unibank, Inc., Philippine National Bank, Security Bank Corporation and Sumitomo Mitsui Banking Corporation-Singapore Branch.
First Gas owns and operates the 1,000-megawatt (MW) Santa Rita natural gas-fired power plant.
In a disclosure to the Philippine Stock Exchange (PSE), the company noted the loan proceeds will be used to repay the amounts due on existing debt of First Gas—approximately $243 million–as well as pay a portion of First Gen’s existing loans and pre-fund upcoming maturities.
“The $500-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,” First Gen President and COO Francis Giles B. Puno said.
“The natural gas platform now stands at 2,011 MW and we are working hard to deliver the country’s first LNG Terminal, as well as more natural gas-fired power plants. Today, we are honored and grateful that our lenders continue to be supportive of our endeavors to deliver clean and cost-efficient power to Filipinos,” Puno said.
First Gen is the largest producer of natural gas-fired power in the Philippines. Its power plants are located in the First Gen Clean Energy Complex in Batangas City. First Gas Santa Rita is one of its four operating power plants, apart from the 500-MW San Lorenzo, the 97-MW Avion and the 414-MW San Gabriel.
First Gen is the largest shareholder in Energy Development Corporation (EDC), which owns and operates geothermal, wind, hydro and solar power plants.
As of today, First Gen has a total installed capacity of 3,471 MW or approximately 21 percent of the country’s gross generation.