First Gen borrows $308M primarily for San Lorenzo gas plant

First Gen plants resume operations

First Gen Corporation announced that it has signed six-year term loan facilities amounting to $308 million (around Php14.8 billion) with four banks primarily to repay the existing debts of its 500-megawatt (MW) San Lorenzo liquefied natural gas (LNG) power plant worth $164 million (around Php7.89 billion).

The agreement was particularly signed by First Gen subsidiary FGP Corporation, which owns and operates the plant, and the Bank of the Philippine Islands, BDO Unibank, Philippine National Bank, and Sumitomo Mitsui Banking Corporation Singapore Branch.

Meanwhile, the balance would be used to pre-fund First Gen’s upcoming projects in the next 12 months.

“The combined debt facilities totaling US$308 million 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 24 years ago and it has since reached even greater heights,” First Gen President and COO Francis Giles Puno said in a statement.

“The natural gas platform now stands at 2,017MW and we are working hard to deliver the country’s first Interim Offshore LNG Terminal Project, as well as additional natural gas-fired power plants,” he continued.

First Gen is expected to complete the LNG terminal in 2022.

The Lopez-led firm recently confirmed its interest to buy the Philippine National Oil Company’s “banked gas” from Malampaya to power its four gas plants in Batangas City. Aside from San Lorenzo, First Gen also owns the Santa Rita, Avion, and San Gabriel facilities.