First Gen to raise P7 billion to fund investments

Lopez-led First Gen Corp. is looking at issuing preferred shares early next year to raise P5 billion to P7 billion to fund its acquisitions and investments, a company official said this weekend. First Gen president Francis Giles Puno said the company will finance its acquisition of the BG Group's 40-percent stake in the 1,000-megawatt (MW) Sta. Rita and 500-MW San Lazaro gas-fired power plants. The others will be used for some refinancing due next year, potentially for the convertible bond due in February, Puno added. First Gen will also use the money to refinance the call option on the shares of its subsidiary, Energy Development Corp. (EDC), he said. "The call option [is] about $75 million. We'll do that by March next year. [That's] the one we entered into with the EDC shares owned by the STI group," Puno said. — JE/VS, GMANews.TV