First Gen’s hydro unit secures P7-B loan to bolster operations

The hydro business of Lopez-led First Gen Corp. is set to get a boost as it has secured fresh funds reaching P7 billion.

In a disclosure to the local bourse on Friday, the company said its subsidiary First Gen Hydro Power Corp. (FG Hydro) inked loan deals with BDO Unibank, Inc. (BDO), Bank of the Philippine Islands (BPI) and Rizal Commercial Banking Corp. (RCBC) for a total amount of P7 billion.

The group said the new funds would be used for the unit’s general corporate requirements and to increase its presence in the renewables market.

FG Hydro currently operates the 132-megawatt (MW) Pantabangan-Masiway hydroelectric power plant in Nueva Ecija province.

“Hydroelectric plants play a crucial role in our country’s energy security and decarbonization goals. This financing will enhance our capability to offer a competitive portfolio of clean energy to the nation,” said Emmanuel Singson, First Gen’s chief financial officer.

“We are very grateful for the continued trust and support of our partner banks BDO, BPI and RCBC.”

Revenues slightly down

Aside from the Pantabangan-Masiway facility, First Gen’s hydro portfolio outside FG Hydro includes the 165-MW Casecnan Hydroelectric Power Plant in Pantabangan, Nueva Ecija, and the 1.6-MW Mini-Hydroelectric plant in Manolo Fortich, Bukidnon.

First Gen, a subsidiary of conglomerate First Philippine Holdings Corp., is the leading power generation firm in the local market, with 3,697 MW of total installed capacity from a portfolio of 33 power facilities. It has the largest portfolio of plants that run on geothermal, wind, hydro and solar energy.

In the January to September period, the firm saw its net income attributable to equity holders of the parent company sink by 16 percent to $206.9 million from a year ago’s $246.79 million due to the weaker performance of its wind, geothermal and solar operations.

Revenues from the sale of electricity also slightly fell by 2.3 percent to $1.85 billion. INQ