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First Gen Corp. signs US$142m loan to fund investments at EDC

Bacon-Manito geothermal power plant, Philippines (source: First Gen Corp.)
Alexander Richter 6 Sep 2010

First Gen Corp. signs US$142million loan to fund investments and finance capital requirements, among others for the rehabilitation of the 150MW Bacon-Manito geothermal plants in the Philippines.

Reported from the Philipppines, “First Gen Corp. signed today a $142-million loan, which would be used largely to fund investments and finance capital requirements for the various growth initiatives of the company.

In a disclosure to the Philippine Stock Exchange, First Gen said the loan would also be used to partially refinance outstanding indebtedness and fund other general corporate purposes.

According to First Gen, the loan has a six- and seven-year floating rate committed term and has a grace period of 24 and 36 months from drawdown. Funds will be made available until February 28, 2011.

The loan was arranged by the BDO Capital and Investment Corp. as issue manager and sole bookrunner, with a consortium of foreign and commercial banks composed of Banco de Oro, Security Bank, Bank of the Philippine lslands, Maybank, RizaI CommerciaI Banking Corp., Union Bank of the Philippines, Mizuho Corporate Bank, Allied Bank Corp. and Robinsons Savings Bank.

Over the next five years, First Gen and its subsidiaries are expected to spend some $1.5 billion for power projects that would generate more than 1,000 megawatts (MW) in additional capacity.

First Gen president and CEO Federico R. Lopez had said that this amount was a rough estimate of what the company would need to rehabilitate and expand existing power facilities and to put up greenfield power projects.

Lopez said these projects included the expansion of the 500-MW San Gabriel natural gas plant in Batangas and of the Pantabangan-Masiway hydropower plant complex in Nueva Ecija. Also planned is the rehabilitation of the 150-MW Bacon-Manito geothermal facilities in Albay and Sorsogon.

As for its greenfield power projects, the company and its subsidiaries have on the pipeline the wind power project in Burgos, Ilocos Norte; 50-MW Mt. Apo 3 geothermal power project, which is expected to come online by 2014; and the 40-MW Tanawon

First Gen is currently the leading clean and renewable energy company in the Philippines with an installed capacity of 2,887.4 MW—accounting for approximately 19 percent of total installed capacity in the country.”

Source: Business Inquirer