Philippine-listed power generation firm First Gen Corp said Monday that it has completed its refinancing – raising a $500 million debt facility – from six banks.
First Gen made the transaction through its wholly-owned subsidiary First Gas Power Corp, which signed the $500 million seven-year term loan facility with the Bank of Commerce, Bank of the Philippine Islands, BDO Unibank Inc, Philippine National Bank (PNB), Security Bank Corp, and Sumitomo Mitsui Banking Corp Singapore Branch.
First Gas owns and operates the 1,000 MW Santa Rita natural gas-fired combined cycle power plant.
The proceeds of the loan will be used to repay the amounts due on First Gas’ existing debt of approximately $243 million. The net proceeds of the refinancing will be used to pay down a portion of First Gen’s existing loans, as well as pre-fund its upcoming maturities.
First Gen president and COO Francis Giles Puno said the $500 million debt facility is a testimony to the strong support and continuing confidence of the firm’s lenders in First Gen’s natural-gas business.
“First Gen pioneered this business about 20 years ago and it has since reached even greater heights. 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, through its subsidiaries, is the largest producer of natural gas-fired power in the Philippines where all of its natural-gas fired plants are located in the First Gen Clean Energy Complex in Batangas City.
First Gas’ Santa Rita is one of First Gen’s four natural gas-fired power plants operating today: the 1000-MW Santa Rita, the 500-MW San Lorenzo, as well as the newly operating 97-MW Avion peaking and 414-MW San Gabriel mid-merit power plants.
Aside from its natural gas portfolio, First Gen is the largest shareholder in Energy Development Corporation (EDC) which owns and operates geothermal, wind, hydro and solar power plants in the country.
First Gen currently has a total installed capacity of 3,471 MW accounting for approximately 21 per cent of the country’s gross generation.