SEC approves hike in First Gen capital stock to P8.6B

MANILA, Philippines—The Securities and Exchange Commission has approved the increase in the authorized capital stock of the Lopez-led First Gen Corp. to P8.6 billion from P7.25 billion and the creation of 135 million Series G preferred shares.

In a disclosure to the Philippine Stock Exchange, First Gen reported that the Series G preferred shares, which would have a par value of P10 apiece, would bear several rights and features such as issue value and dividend rate to be determined by the board of directors at the time of issuance and entitlement to cumulative dividends. These shares will be non-voting, non-participating and redeemable at the option of the company.

First Gen president Francis Giles Puno earlier said they expected to raise P10 billion from the proposed issuance of the Series G shares within the second half of the year.

According to Puno, the proceeds from the share issuance would help the company fund its priority projects which include the two hydropower projects—the 30-megawatt Puyo run-of-river hydroelectric power plant in Agusan del Norte and the 23-MW Bubunawan power facility in Bukidnon—which are estimated to cost a combined P10 billion.

The two proposed facilities formed part of a hydropower portfolio, which will see the construction of a total of five plants that can generate about 100 MW combined. The other power projects in the pipeline are expected to be put up in Cabadbaran, Agusan Norte; and Tumalaong and Tagoloan rivers, both in Bukidnon.

First Gen will likewise be shelling out funds for the $260-million Burgos wind power project of its affiliate, Energy Development Corp.

Puno, however, admitted that the timetable for the wind projects would be hinged on the issuance of the final feed-in-tariff rates, a mechanism under the Renewable Energy, which assured developers of a guaranteed price for the energy that they would produce.