Reuters reported today, that “Philippine power producer First Gen Corp. plans to raise up to PHP 5.6 billion (US$ 116 million) by issuing three-year notes through its Unified Holdings to repay debts due this week.”

The article then continues that “First Gen has two bridge loans which mature this week. The company had taken the loans to fund its purchase of 60 percent of geothermal power producer Energy Development Corp (EDC.PS) worth $1.35 billion in 2007.

First Gen said in a statement to the stock exchange its wholly owned subsidiary Unified Holdings had signed a corporate notes facility agreement with a consortium of three local banks.

The facility would carry an interest rate of 9.3769 percent.

“The exercise is part of our financing initiatives to bring the debt at the First Gen level nearer to its operating subsidiaries,” company chief finance officer Giles Puno said in the statement.

Philippine National Bank (PNB.PS), Rizal Commercial Banking Corp (RCB.PS), and BDO Capital & Investment Corp, a unit of Banco de Oro Universal Bank (BDO.PS) are participating in the deal.

First Gen, a unit of conglomerate First Philippine Holdings Corp (FPH.PS), is the largest privately owned power producer in the Philippines with an installed capacity of 2,582 megawatts.”

Source: Reuters