First Gen raises P7.5B for power projects

By Riza T. Olchondra

FIRST Gen Corp. issued P7.5 billion worth of common shares to parent firm First Philippine Holdings of the Lopez Group to fund its power projects.

In a disclosure to the Philippine Stock Exchange (PSE), First Gen said it had sold 297,029,800 unissued common and treasury shares for P25.25 apiece.

First Gen said the amount of shares represented less than 10 percent of the company’s issued and outstanding capital stock, and would be applied for listing with the PSE.

The value, meanwhile, reflects a 2.9 percent discount to the last traded price of P26 per share.

“The proceeds raised in the private placement will help bring First Gen closer to achieving its growth targets,” the company said. The funds will be used for investment in power projects and general corporate purposes, it said.

First Gen is the leading clean and renewable energy company in the Philippines with an installed capacity of 2,783 MW. Its plants use indigenous fuels such as natural gas, water and geothermal steam.

The company was incorporated in December 1998 as the primary holding company for the power generation and energy-related businesses of the Lopez Group.

As of 2014, the company had a portfolio of 16 power generation plants. These facilities have long-term contracts with Manila Electric Company (Meralco) and National Power Corp., as well as supply contracts with electric cooperatives and other distribution utilities.

The company’s interests, direct and indirect, consist of a 100-percent equity interest in the 1,000-MW Santa Rita natural gas-fired combined cycle power plant; a 100-percent equity interest in the 500-MW San Lorenzo natural gas-fired combined cycle power plant; a 70.04-percent effective economic interest in the 132-MW Pantabangan-Masiway hydroelectric power plant complex; a 100-percent equity interest in the 1.6-MW Agusan mini-hydro; and a 50.06-percent equity interest in the 12 integrated geothermal and power projects owned by Energy Development Corp. (combined capacity 1,150 MW).

Based on data from the Department of Energy, First Gen said it accounted for 17 percent of the country’s total installed power generation capacity as of 2013.

By the first half of 2016, First Gen aims to start commercial operations of the 414-MW San Gabriel power plant. The plant’s capacity can be expanded to 800MW by 2017. The plant is located close to the existing Sta. Rita-San Lorenzo gas plant complex in Batangas.

To secure fuel supply for its growing portfolio of gas-fired power plants and ride the cresting demand for alternative energy sources, First Gen Corp. plans to build a $1-billion liquefied natural gas import terminal by the end of 2019.