FGP Corp., which is a subsidiary of Lopez-led First Gen Corporation, has inked a six-year US$308 million loan facility with four banks – the proceeds of which will primarily be allocated to refinance debts funneled to its 500-megawatt San Lorenzo gas fired power plant; while the rest will be earmarked for expansion projects.

The lenders in the new loan deal are Bank of the Philippine Islands, BDO Unibank Inc., Philippine National Bank and foreign bank Sumitomo Mitsui Banking Corporation – Singapore Branch.

“The proceeds from the initial drawdown on the loans will be primarily used to repay the amounts due on FGP’s existing debt of approximately US$164 million,” First Gen has stipulated in its disclosure to the Philippine Stock Exchange.

The Lopez firm added “FGP intends to draw on the balance of the facilities for the next 12 months to pre-fund First Gen’s upcoming projects.”

Among the big-ticket items in the company’s blueprinted projects are its interim liquefied natural gas (LNG) import terminal, the 100MW Lake Aya pumped storage venture and several expansion projects of subsidiary Energy Development Corporation.

On the loan procurement, First Gen President and COO Francis Giles B. Puno noted that “the combined debt facilities totaling US$308 million is a testimony to the strong support and continuing confidence of our lenders in First Gen’s natural gas business.”

He stressed that their lenders “continue to be supportive of our endeavors to deliver clean and cost-efficient power to Filipinos.”

The company already has 2,017MW aggregate portfolio on its gas generation platform, and it indicated that “we are working hard to deliver the country’s first offshore LNG terminal project, as well as natural gas-fired power plants.”

First Gen is already entering the construction phase for its LNG import facility, and it is targeting to bring in imported LNG to the country by third quarter of 2022 – primarily to satiate the fuel needs of its gas plants and other end-users.

On power plant development, First Gen is also pursuing capacity expansion of 1,200MW for its proposed Santa Maria gas-fired facility that it can bring on stream around 2024-2025 when the Philippines will be in need again of additional capacity.

On the firm’s Lake Aya project, First Gen emphasized that it already completed preliminary assessment and feasibility study; and they have also progressed on securing key permits, such as its registration with the Board of Investments; and Certificate of Non-overlap from the National Commission for Indigenous Peoples.

First Gen said it likewise continues “to develop run-of-river projects in our pipeline with a potential of up to 144MW in Mindanao to address the increasing need for renewable projects in Mindanao.”