First Gen Corp. has obtained term loans from BDO Unibank Inc. and Bank of the Philippine Islands for an aggregate P20 billion.
First Gen said told the Philippine Stock Exchange Monday it plans using the proceeds to fund growth projects, including the acquisition of the 165-megawatt Casecnan hydroelectric power plant and for other general corporate requirements.
“The fresh financing will be used to fund the acquisition of Casecnan hydroelectric power plant, which is vital to our transition towards a decarbonized and regenerative future,” said Emmanuel Singson, First Gen chief financial officer.
Charles Rodriguez, BDO executive vice president and group head for institutional banking, said renewable energy programs are a priority sector.
Juan Carlos Syquia, BPI executive vice president and head of institutional banking, said the loan is part of their commitment to support client’s sustainability initiatives.
In May this year, First Gen Corp. subsidiary Fresh River Lakes Corp. won the privatizing Casecnan hydro plan in Nueva Ecija with a $526-million bid from the Power Sector Assets and Liabilities Management Corp. (PSALM).
Earlier, Francis Giles Puno, First Gen president and chief operating officer, said the Casecnan property is crucial to complete the synergies of its 132 MW Pantabangan-Masiway hydro plant and the planned 120 MW Aya pumped storage hydroelectric plant which are both in Nueva Ecija.
Puno also said First Gen is interested in bidding for the 727 MW Caliraya-Botocan-Kalayaan hydro power plant in Laguna when PSALM launches its privatization.
First Gen has combined capacity of 3,500 MW from a portfolio using natural gas, geothermal, hydroelectric, wind and solar power technologies.
First Gen is also planning to spend as much as $20 billion until 2030 to add up to 9,640 MW capacity and achieve a total portfolio of around 13,000 MW by then.
