First Gen Secures P24.75 Billion Credit for Hydropower Stake Acquisition
First Gen Corp has obtained P24.75 billion in standby letters of credit from BDO Unibank to facilitate its P61.875 billion acquisition of a minority stake in Prime Hydropower Energy Inc. This investment supports the development of 2,000 MW of pumped storage capacity, which is crucial for addressing energy demands in the Philippines.
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BDO Unibank Inc. has issued P24.75 billion in standby letters of credit to First Gen Corp to support its acquisition of a 33-percent stake in Prime Hydropower Energy Inc. This acquisition, executed through First Gen's subsidiary FGEN Aqua Power Holdings Inc., is valued at P61.875 billion and involves developing 2,000 MW of pumped storage, featuring the 600-MW Wawa plant and the 1,400-MW Pakil project.
BDO allocated P9.9 billion for Wawa and P14.85 billion for Pakil. The structural arrangement is seen as essential for maintaining strategic direction within the FPH group, indicating that strong financial backing is linked to effective management.
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