Lopez-controlled First Gen Corporation has inked a $142-million 6-year and 7-year term loan facilities arranged by BDO Capital and Investment Corporation as issue manager and sole bookrunner.
In a disclosure to the Philippine Stock Exchange (PSE), First Gen noted that the facility was raised from a consortium of foreign and commercial banks composed of Banco de Oro, Security Bank, Bank of the Philippine Islands, Maybank, Rizal Commercial Banking Corporation, Union Bank of the Philippines, Mizuho Corporate Bank, Allied Bank Corporation and Robinsons Savings Bank.
“The loan has a grace period of 74 and 36 months from drawdown, respectivety.
Funds will be made available until February 28, 2011,” the company said.
It added that the “proceeds of the loan will be used to fund investments, finance capital requirements for various growth initiatives of the company, partially refinance outstanding indebtedness, and fund other general corporate purposes.”
First Gen is among the local companies eyeing to expand its power generation power portfolio from the near to the medium-term.
The company noted that, together with its subsidiaries, it still has room for capacity expansion of up to 1,500 megawatts – as referenced on the prescribed market cap under the Electric Power Industry Reform Act.
The business strategy of the conglomerate, primarily its wholly-owned subsidiary Energy Development Corporation (EDC), would be to harness more renewable energy resources such as geothermal and wind technologies.
For its planned wind power facility in Ilocos Norte, it has been emphasized that it will initially pump in capital investment of $100 million as a component of its equity portion in the project.
http://www.mb.com.ph/articles/275883/first-gen-gets-142m-term-loan-facility
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