BDO Capital & Investment Corp., the investment banking arm of Banco de Oro Unibank, said it was also close to finalizing a refinancing deal for First Gen Corp., worth roughly $500 million.

BDO Capital is the lead bank for the local tranche of the First Gen loan, worth $150 million, BDO Capital president Eduardo Francisco said.

The remaining $350 million is being worked out to be arranged by foreign banks, which have started lending again, encouraged by more capital flowing into the financial system after the unified efforts of European central banks to put up a $2-trillion lifeline for banks, Francisco said.

BDO Capital was the lead bank that arranged a $300-million loan for First Philippine Holdings Corp. last year, he said.

First Gen has $400 million in debt that it had taken out to acquire a major stake in Energy Development Corp. and which will fall due in November.

Worries on whether it could pay the debt at a time of global financial crisis battered First Gen stock in past weeks, sending its share price to a 52-week low of P13.75 last Oct. 10.

First Gen shares rebounded on Tuesday to P16.75 and closed at P15.75 on Wednesday.

Francisco said: “Just to clear up the jitters in the market, the foreign banks and local banks are talking. We anticipate that this deal will close soon. Majority of this refinancing deal is underwritten so there should be no concern from the public on the company’s ability to raise funds.” Elizabeth Sanchez-Lacson; edited by INQUIRER.net