First Gen hopes to raise P10B from share issue

First Gen Corp. of the Lopez group plans to issue by May this year 100 million Series G perpetual preferred shares to raise roughly P10 billion.

In a filing with the Securities and Exchange Commission, First Gen said the primary offer would consist of 70 million Series G preferred shares, with an oversubscription option for an additional 30 million shares at an issue price of P100 apiece.

The issue manager and sole bookrunner would be BDO Capital and Investment Corp.

According to First Gen, one of the features included is the entitlement to cumulative dividends. These shares will be non-voting, non-participating and redeemable at the option of the company.

According to First Gen president Francis Giles Puno, the proceeds from the share issuance will help the company fund its priority projects, which include 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.

Other power projects in the pipeline are those to be put up in Cabadbaran, Agusan Norte; and Tumalaong River and Tagoloan River, both in Bukidnon.

The proposed facilities formed part of its hydropower portfolio, which will see the construction of five plants that can collectively generate about 100 MW.

First Gen will likewise shell out funds for the $260-million Burgos wind power project of its affiliate, Energy Development Corp.—Amy R. Remo