First Gen signs P20-B loan deal

LOPEZ-LED First Gen Corp. on Monday signed term loan agreements with BDO Unibank Inc. (BDO) and Bank of the Philippine Islands (BPI) for an aggregate amount of P20 billion, which it intends to use to fund several projects.

“First Gen intends to use the proceeds from the loans as funding for several of its growth projects, including the acquisition of the 165-megawatt (MW) Casecnan Hydroelectric Power Plant (Chepp), and for other general corporate requirements,” the company said in a disclosure.

Chepp is a run-of-river power facility located in Pantabangan, Nueva Ecija. In May this year, First Gen subsidiary Fresh River Lakes Corp. was declared the winning bidder for Chepp by state-run Power Sector Assets and Liabilities Management (Psalm).

“The fresh financing will be used to fund the acquisition of Chepp, which is vital to our transition towards a decarbonized and regenerative future,” First Gen Chief Financial Officer Emmanuel Singson said.

BDO said it was looking forward to a robust, longer-term business relationship with First Gen.

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“First Gen will help in power generation in the community as it uplifts the lives of Filipinos while protecting the environment,” BDO Executive Vice President Charles Rodriguez said.

BPI said it was happy to work with First Gen by providing them with more innovative financial solutions.

“Through this method, we help improve the quality of life in the communities First Gen operates in and in the communities it serves,” BPI Executive Vice President Juan Carlos Syquia said.

First Gen shares were down 10 centavos at P18.20 each on Monday.