Prime Infra seals P47-B deal with First Gen

Prime Infrastructure Capital Inc. has obtained a P47-billion deal from two major banks to finance its acquisition of First Gen Corp.’s natural gas assets.

On Thursday, Prime Infra said it had inked omnibus loan and security agreement last Nov. 12 with Sy-led BDO Unibank and the Ayala group’s Bank of the Philippine Islands (BPI).

Guillaume Lucci, company president and chief executive officer, said the financial backing from BDO and BPI showed “their confidence in Prime Infra’s long-term strategy on energy security.”

“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,” Lucci said.

“With reliable LNG (liquefied natural gas) infrastructure and efficient gas-fired facilities, the Philippines can better manage the volatility of energy supply by providing power during the transition towards more renewable energy sources for the grid,” he added.

Prime Infra’s deal with the Lopez-led group is valued at P50 billion, covering six facilities. These include the 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, the proposed 1,200-MW Santa Maria power plant and the Interim Offshore LNG Terminal.

With the closing of the transaction, Prime Infra gained a 60-percent stake in these assets.

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First Gen, meanwhile, retained the remaining 40 percent.

Both parties completed the deal just less than a month after they secured the Philippine Competition Commission’s go signal.

Jose Victor Emmanuel “Jocot” de Dios will be the new president and chief executive officer of Prime CoreGen, the firm that will manage the assets.