First Gen prices $250-million bond issue at 6.5% per year

Business Mirror

03 Oct 2013 

 

Written by PNA

FIRST Gen Corp., the country’s leading clean and renewable energy company, has set a price for its $250-million senior unsecured bond issuance.

The 10-year non-call bond issue has a fixed coupon of 6.5 percent per annum, which will mature on October 9, 2023. The bond’s maturity can be extended up to a further five years.

“The transaction garnered strong interest from offshore accounts in Asia and Europe, pricing tighter than initial guidance,” First Gen said in a disclosure.

The company said the proceeds from the issue will be invested in power projects as well as for general corporate purposes.

The Lopez-led company plans to spend around P94 billion for the construction of natural gas facilities over the next five to six years.

Deutsche Bank, HSBC and JPMorgan served as joint lead managers and joint lead bookrunners for the transaction.

BDO Capital & Investment Corp. and Development Bank of the Philippines served as domestic lead managers.

First Gen has an installed capacity of 2,822 megawatts, which accounts for about 19 percent  of the country’s total installed capacity. It utilizes indigenous, clean and renewable energy to run its power plants. Its Santa Rita and San Lorenzo plants use indigenous natural gas while water runs the Pantabangan-Masiway and Agusan mini-hydroelectric plants. Subsidiary Energy Development Corp. is the country’s largest geothermal producer.   source