First Gen to borrow $100m

Manila Standard Today

First Gen Corp., the power generation unit of the Lopez Group, signed Friday a $100-million note issue with Banco de Oro Unibank Inc. to fund its investment program and other operations next year.

First Gen said in a disclosure to the Philippine Stock Exchange that BDO Capital and Investment Corp. would act as arranger of the bonds.

First Gen is selling six- and seven-year bonds with a grace period for the principal payment of 24 months 36 months, respectively.

First Gen officials earlier said the company planned to issue preferred shares worth P5 billion to P7 billion in the first quarter to finance acquisitions and other potential investments.

First Gen president Francis Giles Puno said First Gen was raising funds to partially fund its acquisition of the BG Group’s 40 percent stake in the 1,000-megawatt Sta. Rita and 500-MW San Lorenzo gas-fired power plants.

Meanwhile, its unit Energy Development Corp. said it was in talks with financial advisors for funding options, including a “potential” bond sale. Alena Mae S. Flores