First Gen Corp. has secured ₱24.75 billion in financial backing from Sy-led BDO Unibank Inc. to acquire a minority stake in a massive hydropower venture, provided that Chairman and Chief Executive Officer Federico “Piki” Lopez remains at the helm of the energy giant.

The Lopez-led power generator disclosed to the Philippine Stock Exchange on Friday, Apirl 17, that BDO issued two standby letters of credit valued at ₱9.9 billion and ₱14.85 billion to support the acquisition.

The funds will allow First Gen’s subsidiary, FGEN Aqua Power Holdings Inc., to purchase a 33 percent stake in Prime Hydropower Energy Inc., the developer behind the 600-megawatt Wawa and 1,400-megawatt Pakil pumped storage hydro projects led by billionaire Enrique K. Razon Jr.

However, the financing includes a stringent “Change of Management Control” covenant that effectively ties the multi-billion-peso credit line to Lopez’s personal leadership.

Under the terms of the agreement, BDO reserves the right to declare an immediate default if Lopez is ousted or if he loses majority control over the board and executive committees of the parent firm, First Philippine Holdings Corp.

First Gen said the clause as an acknowledgment of Lopez’s role as the group’s indispensable strategic anchor, noting that the bank views his continued involvement as vital to the stability of the conglomerate.

While such covenants are often used to protect lenders against hostile takeovers, the specificity of this “key man” provision underscored the high stakes of the transition to renewable energy storage.

The pumped storage projects are considered critical to the Philippines' grid stability as the country integrates more intermittent solar and wind power.

First Gen explained that BDO’s issuance of the credit instruments, coupled with the management continuity requirements, demonstrates the bank’s confidence in the current leadership to execute these capital-intensive projects.

If the leadership continuity condition is breached, BDO could pull the plug on the financial guarantees, potentially jeopardizing First Gen’s entry into the Razon-led venture. This structure reinforces Lopez’s position at the center of the company’s long-term strategy as it expands its portfolio beyond natural gas and geothermal energy into large-scale hydroelectric storage.