The proceeds of the loan will be used to repay the existing debt of FGP in the amount of US$77.4 million.
Thereafter, the net proceeds of the refinancing will be used to pay down a portion of First Gen Corporation’s ("First Gen”) debts. With the purchase of BG’s (formerly BG Philippines Holdings, Inc.) 40% stake in the natural gas plants last May 2012, First Gen effectively owns 100% of FGP.
"We are grateful for the strong support of our relationship banks that enabled this financing to close in record time. Aside from paying down debt at the First Gen level, the proceeds can be used to partly fund our growth plans including the 200MW to 500MW San Gabriel gas-fired project which will begin construction next year and be completed in the 2014/2015 timeframe.” Francis Giles B. Puno, President and COO of First Gen said.
FGP, together with affiliate First Gas Power Corporation, own and operate the 500MW San Lorenzo and 1,000MW Santa Rita natural gas-fired power plants (the "First Gas Plants”), respectively. Both plants comprise First Gen’s natural gas portfolio and are located in Batangas City.
In addition to the First Gas Plants, First Gen is the largest shareholder in Energy Development Corporation (EDC). First Gen’s power portfolio has an installed capacity of 2,763MW and accounts for approximately 18% of the national grid installed capacity in the country today.