Prime Infrastructure Capital, Inc. (Prime Infra) has successfully sealed a P47-billion omnibus loan and security agreement to finance its acquisition of a 60% controlling ownership stake in the natural gas power generation assets of First Gen Corporation (First Gen) in Batangas.
The definitive omnibus loan and security agreement was formally signed on November 12. A ceremonial signing was later held, gathering key leaders from Prime Infra and its banking partners.
Prime Infra was represented by Chairman Enrique K. Razon Jr. and President and CEO Guillaume Lucci, alongside Prime Infra Chief Financial Officer Sandy Alipio, Chief Legal Officer Philip Ranada, and Head of Treasury Emma Villa del Rey.
The financing was secured with leading Philippine financial institutions:
-
Lenders: BDO Unibank, Inc. and Bank of the Philippine Islands (BPI)
-
Mandated Lead Arranger and Bookrunner: BDO Capital
Attendees from the banking partners included BDO Chair Teresita Sy-Coson and Executive Vice President Charles Rodriguez; BDO Capital President Eduardo Francisco; and BPI Senior Vice President and Institutional Banking Head Luis Cruz.
The substantial financing deal is a pivotal step in Prime Infra’s strategy to build a robust, integrated energy platform for the Philippines.
“This partnership with our banking institutions reflects their confidence in Prime Infra’s long-term strategy on energy security,” said Guillaume Lucci, Prime Infra President and CEO. “This financing strengthens our position in natural gas and supports our goal of building an integrated energy platform that the country can rely on for decades.”
The financing supports Prime Infra’s acquisition of a 60% stake in five key natural gas power plants, totaling over 3,247 MW in combined capacity:
-
1,000-megawatt (MW) Santa Rita Power Plant
-
500-MW San Lorenzo Power Plant
-
450-MW San Gabriel Power Plant
-
97-MW Avion Power Plant
-
Proposed 1,200-MW Santa Maria Power Plant
This acquisition significantly solidifies Prime Infra’s presence in the Philippine natural gas industry, a critical component of the country’s energy security goals. First Gen will maintain a 40% interest in these power generation assets.
In addition to the generation assets, Prime Infra now also holds a 60% stake in the offshore liquefied natural gas (LNG) terminal, with First Gen and Japan’s Tokyo Gas holding 20% each.
