MANILA, Philippines - FGP Corp., a wholly-owned subsidiary of First Gen Corporation, signed a $420 million 10-year loan facility with 7 banks to pay existing debts and fund expansion plans.
The company said proceeds of the loan will be used to repay its existing debt of$77.4 million, and to pay down a portion of First Gen's debts.
FGP signed the loan facility with 7 banks, namely Bank of the Philippine Islands, BDO Unibank, Inc., Philippine National Bank, Rizal Commercial Banking Corporation, Security Bank Corporation, The Hong Kong and Shanghai Banking Corporation, and Union Bank of the Philippines.
"We are grateful for the strong support of our relationship banks that enabled this financing to close in record time. Aside from paying down debt at the First Gen level, the proceeds can be used to partly fund our growth plans including the 200MW to 500MW San Gabriel gas-fired project which will begin construction next year and be completed in the 2014/2015 timeframe," Francis Giles B. Puno, First Gen president and COO, said.
First Gen, the power generation firm of the Lopez Group, owns 100% of FGP. FGP, together with affiliate First Gas Power Corporation, own and operate the 500MW San Lorenzo and 1,000 San Rita natural gas-fired power plants in Batangas.