THE LOPEZ-LED First Gas Power Corp. has signed a $544-million loan with nine foreign banks, enabling it to repay existing debt worth $132 million.

In a regulatory filing Tuesday, the company said its nine lenders included The Bank of Tokyo-Mitsubishi UFJ Ltd., Calyon, KfW Ipex Bank GmbH, the Singapore branch of ING Bank NV, the Hong Kong branch of Bayerische Hypo-und Vereinsbank AG, Malayan Banking Berhad, Standard Chartered Bank, Société Générale and Kreditanstalt für Wiederaufbau.

The first installment of the two-tranche term loan is an uncovered facility with a 10-year term, while the second tranche is a political risk-covered facility with a 12.5-year term.

According to First Gas, apart from repaying its own $132-million loan, $215 million of the loan proceeds would go to the payment of a significant part of the maturing debts of parent firm First Gen Corp.

"Despite the volatility of today's financial market, the $544-million long-term debt facility obtained by First Gas is a testimony to the lenders' continuing confidence and commitment to our group and the projects that we undertake," First Gas and First Gen president and chief executive Federico Lopez said.

Aside from the new term loan, First Gen is also banking on the purchase of Marubeni Corp. of a 40-percent stake in Red Vulcan Holdings Corp., which owns 60 percent of Energy Development Corp., to help pare down its maturing debts.

Red Vulcan is a First Gen subsidiary.

The sale of 40 percent of Red Vulcan's stake in EDC would allow it to prepay the balance of its loan amounting to P13.9 billion, which was used for the acquisition of EDC shares in November last year.

The loan will mature in May 2009.