First Gen taps P2.8-B loan for Prime Meridian operations

First Gen Corp. is securing a loan term facility worth P2.8 billion for a three-year period to finance the operations of its subsidiary, Prime Meridian Powergen Corp. (PMPC).

The Lopez-led firm reported in a disclosure that the loan, to be sourced from the Bank of the Philippines Islands and ING Bank N.V. Manila Branch, would be primarily used to fund PMPC’s capital requirements.

PMPC owns and operates the 97-megawatt Avion dual-fired open-cycle gas turbine power plant in Batangas City. It is the first of its kind to run on indigenous liquid natural gas (LNG) and is the latest addition to First Gen’s renewable energy power plants.

“This is the first term loan of PMPC and it is reflective of the Avion power plant’s strong and stable cash flows since starting operations in 2016,” said First Gen president and chief operating officer Francis Giles B. Puno.

“The combined debt facilities totaling P2.8 billion is a testimony to the strong support and continuing confidence of our lenders in First Gen’s natural-gas business,” he added.

First Gen said its natural gas platform now stood at 2,017 MW while the total installed capacity in its portfolio is at 3,495 MW.

The company is also working on the country’s first interim offshore LNG terminal project, seen to ensure the energy security of the country especially the Luzon grid.