First Gen secures $308 million bank loan

MANILA, Philippines — Lopez-led First Gen Corp. has secured $308 million, six-year term loan facilities with four banks to repay existing debts and finance future projects.

In a disclosure to the Philippine Stock Exchange, First Gen said the loan was obtained from Bank of the Philippine Islands, BDO Unibank Inc., Philippine National Bank and Sumitomo Mitsui Banking Corp. Singapore Branch.

“The combined debt facilities totaling $308 million is a testimony to the strong support and continuing confidence of our lenders in First Gen’s natural-gas business,” First Gen president and COO Francis Giles Puno said.

Proceeds from the initial drawdown on the loans will be primarily used to repay the amounts  due on FGP Corp.’s existing debt of approximately $164 million.

FGP intends to draw on the balance of the facilities in the next 12 months to pre-fund First Gen’s upcoming projects.

It owns and operates the 500-megawatt (MW) San Lorenzo natural gas-fired combined cycle power plant.

Puno said First Gen pioneered the natural gas business about 24 years ago, which has now reached even greater heights.”

“The natural gas platform now stands at 2,017 MW 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. 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,” he said.

The interim offshore LNG terminal, which is being developed by subsidiary FGEN LNG Corp., is targeted for completion by the third quarter of next year.

First Gen said the project plays a critical role in opening liquefied natural gas (LNG) imports to the Philippines as it transitions to cleaner energy sources and as the Malampaya gas resource is depleting.

The project aims to build a modified terminal which will help meet the power demands of 4.5 million homes by supplying LNG to existing gas-fired power plants, which in 2019 were responsible for delivering 13,876 GWh into the Luzon grid.

First Gen is spending $120 million this year for the construction of the interim offshore terminal project.

Puno earlier said the development of the FGEN LNG Terminal paves the way for the construction of the 2x600-MW Santa Maria gas-fired power project could be online by late 2024 or early 2025.

First Gen is already carrying out pre-development works and securing permits for the power project.

First Gen is a leading independent power producer in the Philippines that primarily utilizes clean and indigenous fuels such as natural gas, geothermal energy from steam, hydro-electric, wind and solar power.

It has 3,495 MW of installed capacity in its portfolio, which accounts for 19 percent of the country’s gross generation.