First Gen Corp. said Monday it signed term loan agreements with BDO Unibank Inc. and Bank of the Philippine Islands for P20-billion loan to finance its funding requirements.
First Gen said in disclosure to the Philippine Stock Exchange it would use the loan proceeds for the company’s growth projects, including the acquisition of the 165-megawatt Casecnan hydroelectric power plant (CHEPP) and for other general corporate requirements.
“We are honored by and grateful for the confidence that the lenders have placed in First Gen. 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.
State-run Power Sector Assets and Liabilities Management Corp. declared First Gen subsidiary Fresh River Lakes Corp. as the winning bidder for the CHEPP privatization on May 26, 2023.
Fresh River offered the highest bid of $526 million for CHEPP, a run-of-river type of power facility with limited impounding located in Barangay Villarica, Pantabangan, Nueva Ecija.
PSALM aims to close the transaction by the end of the year and turn over the asset to First Gen early next year.
“We expect the closing and turnover by PSALM of the 165-MW Casecnan Hydroelectric Power plant in early 2024,” First Gen president and chief operating officer Francis Giles Puno said earlier.
BDO executive vice president and group head for institutional banking group Charles Rodriguez said the bank is committed to a sustainable future, providing access to capital to renewable energy projects which it considers as a priority sector in financing.
“First Gen will help in power generation in the community as it uplifts the lives of Filipinos while protecting the environment. Looking forward to a robust and longer-term business relationship with First Gen,” said Rodriguez.
BPI executive vice president and institutional banking head Juan Carlos Syquia said they are committed to promoting sustainability and is always eager to support its clients’ sustainability initiatives.
“We are glad to have done so by providing First Gen with more innovative financial solutions and improve the quality of life in the communities First Gen operates in and in the communities it serves. This forms part of our vision to build a better Philippines – one family, one community at a time,” said Syquia.