First Gen Corp. is doubling down on sustainable power with a P10-billion loan from BDO Unibank Inc. to acquire the 165-megawatt Casecnan Hydroelectric Power Plant in Nueva Ecija, a move that strengthens its clean energy footprint in Luzon, the Philippine Daily Inquirer reported. This acquisition underscores the company’s pivot toward integrating hydroelectric assets to meet rising energy demands with eco-friendly solutions.
Through its subsidiary, Fresh River Lakes Corp. (FRLC), First Gen took control of the Casecnan facility in February 2024 after the Philippine government transferred its ownership. The plant’s addition boosts First Gen’s hydroelectric contributions, which surged 37% to USD 11 million from USD 8 million, despite a 4.9% dip in overall recurring net income to USD 77 million.
BDO’s role extended beyond financing, covering the bid bond, purchase price funding, and US dollar transactions to seal the deal.
“The bank’s proactive approach and deep understanding of our business allowed for a seamless transaction, from bid submission to closing,” said Francis Giles Puno, vice chairman and chief executive officer of FRLC. BDO emphasized its commitment to critical power infrastructure, with Eduardo Francisco, president of BDO Capital, affirming support for projects driving economic growth.
First Gen plans to integrate Casecnan with its other hydro assets over the next five years, aligning with its leadership in the local market, where it commands 3,668 megawatts across 33 power facilities. This strategic acquisition not only enhances energy reliability but also cements First Gen’s role in the Philippines’ renewable energy future.
What do you think about First Gen’s push for renewable energy with the Casecnan acquisition? Share your thoughts and join the discussion on sustainable power solutions!
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