First Gen Corp signs $500M debt facility with six banks

RCOA scheme continues, mandatory provision under review

First Gas Power Corporation has signed a $500 million seven-year loan facility with Bank of Commerce, Bank of the Philippine Islands, BDO Unibank Inc., Philippine National Bank, Security Bank Corporation and Sumimoto Mitsui Banking Corporation Singapore Branch.

The said loan will be used to pay the existing debt of First Gas with an estimate of $243 million. The net proceeds of the refinancing will be used as down payment for a portion of First Gen’s existing loans and to fund its 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,” said President and Chief Operating Officer Francis Giles Puno.

First Gen is the largest producer of natural gas-fired power in the country where all of its plants are located in the First Gen Clean Energy Complex in Batangas City. The company owns and operates four natural gas-fired power plants including 1,000 MW Santa Rita natural gas-fired combined cycle power plant, 500-MW San Lorenzo, 97-MW Avion peaking, and 414-MW San Gabriel mid-merit power plants.

First Gen is also the largest shareholder in Energy Development Corp. (EDC), owning and operating geothermal, wind, hydro and solar power plants in the country.

First Gen has a total installed capacity of 3,471 MW, contributing to an estimate of 21% of the gross electric output.