Published
By Myrna M. Velasco
As part of the Lopez
firm’s debt management strategy, First Gen Corporation indicated that it purchased
sizeable portion of its Singapore-listed US$300-million notes facility.
The company apprised
the Philippine Stock Exchange (PSE) that this is in connection with its Reg S
notes with 6.5 percent fixed rate that will be due in 2023.
First Gen has not
specified for now the level of the financial instrument purchase that it had
transacted, and has just noted that it secured the notes via the market.
According to First Gen
Chief Finance Officer Noel Singson, the company’s decision to explore this
option in the capital market is “part of FGen’s debt reduction plan.”
He emphasized “we
purchased some of its US dollar bonds listed in the Singapore Exchange
Securities Trading Limited.”
It was not stipulated
which projects had the credit facility been funneled to then, but one thing
apparent was for the company securing borrowings when it constructed its two
recently commercially commissioned gas plants, the 414-megawatt San Gabriel
combined cycle gas-fired plant; and the 97MW Avion power facility.
The Lopez firm is still
not stopping on these investments though – in fact, it has grander investment
plans cast in the gas sector.
Primarily, it is
advancing to implementation phases the planned liquefied natural gas (LNG)
import facility and another 414MW plant expansion via its proposed Sta Maria
gas-fired power project.
The firm has been
exploring partnership ventures with interested parties, including that of
state-run Philippine National Oil Company (PNOC), but serious negotiations have
yet to move headway.
First Gen is already
inching close to completing its study on the proposed gas facilities, but
adjustments may still be made depending on the regulatory framework that the
government will eventually be enforcing for the market reset of the gas
industry.
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