First Gen gets P10B from BDO for Casecnan hydro plant
MANILA, Philippines — First Gen Corp. has obtained a P10-billion loan from Sy-led lender BDO Unibank Inc. for the acquisition of the 165-megawatt (MW) Casecnan Hydroelectric Power Plant facility in Nueva Ecija.
Through its subsidiary Fresh River Lakes Corp. (FRLC), Lopez-led First Gen boosted its portfolio with the purchase of the Casecnan plant.
The Philippine government turned over the facility’s ownership and operation to the renewable energy producer last February 2024.
In a statement on Wednesday, BDO said the loan deal showed its support in power infrastructure, especially the “critical” ones, to strengthen the supply reliability in Luzon.
In addition to this, the bank also covered the bid bond, purchase price funding and facilitated the necessary US dollar transactions to close the agreement.
According to Francis Giles Puno, vice chairman and chief executive officer of FRLC, BDO has been extending financial support for “its most transformative projects.”
Asset integration
First Gen said that it targets to integrate the Casecnan facility with its other hydro assets “over the next five years.”
READ: First Gen: Casecnan win to boost deficient hydro complex
“The bank’s proactive approach and deep understanding of our business allowed for a seamless transaction, from bid submission to closing. Our banking relationship with BDO is invaluable,” he said.
Eduardo Francisco, president of BDO Capital, said the group would continue backing developments that could propel the country’s economic growth.
In an earlier disclosure, First Gen said its attributable recurring net income fell by 4.9 percent to $77 million (P4.49 billion) against the previous $81 million (P4.52 billion) due to lower power sales.
However, it noted that contributions from its hydro facilities jumped by 37 percent to $11 million from $8 million, propelled by the Casecnan power plant.
First Gen, a subsidiary of conglomerate First Philippine Holdings Corp., is the leading power generation firm in the local market, with 3,668 megawatts of total installed capacity from a portfolio of 33 power facilities.
