MANILA, Philippines - First Gen Corp., the power generation arm of the Lopez Group, will issue another $50 million worth of 10-year bonds after successfully issuing $250 million worth of bonds early this month.
“Please be informed of the re-opening of First Gen Corp.’s 6.5 percent senior notes due October 2023. The opening size will be up to the amount of $50 million,†First Gen said in a diclosure to the stock exchange yesterday.
The company did not provide details but said proceeds of the $250-million bonds it earlier issued would be used for investments in power projects and other general corporate purposes.
The company has mandated three global investment banks to arrange a series of roadshows in Manila, Hong Kong and Singapore.
First Gen subsidiary First Gas owns the 1,500 megawatt Santa Rita and San Lorenzo natural gas plants in Batangas.
In May, First Gen disclosed plans to tap the global debt market to raise up to $600 million to finance the second phase of its San Gabriel project in Batangas.
The company plans to spend $2.3 billion for the1,300-MW expansion of its energy projects in the medium term through the San Gabriel project, which the company plans to develop in three phases.The first phase of 100 MW can be completed as early as 2014 while the second phase comprising one 400 unit can begin construction in 2013 and completed as early as 2016. The third phase of two 400-MW units and a liquefied natural gas receiving and regasification facility can be completed by 2018.
Last week, First Gen president Francis Giles Puno said on top of the $250 million, the company may raise another $250 million for its expansion projects.
“The total capex (requirement for the expansion) is about $650 million. So we have $250 million and then we’ll borrow probably an additional $250 million and then the $100 million will be internally generated,†Puno said.