First Gen raises $250M from bond offer
First Gen Corp. (First Gen) said Thursday it successfully closed its $250 million 10-year bond issue, which will support the company’s power ventures.
In a disclosure to the Philippine Stock Exchange, First Gen president and COO Francis Giles Puno said “the positive investor response to our international debt capital markets issuance highlights the strength of First Gen’s portfolio of power assets and its growth opportunities.”
The bonds will be traded on the Singapore Exchange Securities Trading Limited or SGX.
Deutsche Bank, HSBC and J.P. Morgan served as joint lead managers and joint lead bookrunners for the transaction. BDO Capital and Investment Corp. and Development Bank of the Philippines served as domestic lead managers for the transaction.
Earlier, First Gen said the bond offering will fund investments in power, among others. The debt issue is also meant to take advantage of prevailing low interest rates.
In the disclosure, First Gen said “the transaction garnered strong interest from offshore accounts in Asia and Europe, pricing tighter than initial guidance.”
The Lopez-led company said it priced the bonds—which were non-call, senior unsecured securities—with a fixed coupon of 6.5 percent per annum. The bond will mature on Oct. 9, 2023.
“The proceeds from the issue will be used to invest in power projects and general corporate purposes,” First Gen said.
Presently, the company is building the 87-megawatt (MW) wind farm in Burgos, the 40-MW Negros transfer project, and the 500-MW San Gabriel natural gas projects.
For the first half of 2013, First Gen’s net income attributable to equity holders of the parent reached $77.7 million, or 17.4 percent lower than the $94 million registered in the same period of 2012.
First Gen, the primary holding company for the power generation and energy-related businesses of the Lopez Group, attributed the income drop to lower income booked by subsidiary First Gen Hydro Power Corp. due to reduced sales from ancillary or standby power services.
