BDO conditions P25-B funding on Lopez leadership continuity
BDO Unibank Inc. has issued standby letters of credit (SBLCs) worth a combined P24.75 billion to support First Gen Corp.’s acquisition of a 33-percent stake in Prime Hydropower Energy, Inc. (PHEI).
In a statement on Friday, First Gen said the SBLCs—amounting to P9.9 billion and P14.85 billion—will help fund its investment in PHEI, which is building the 600-megawatt (MW) Wawa and 1,400-MW Pakil pumped storage hydro projects.
The credit support, however, comes with strict “change of management control” covenants, linking financing to leadership continuity within the First Philippine Holdings (FPH) group.
Under these terms, an event of default may be triggered if key leadership conditions are not met, including the continued role of Federico “Piki” Lopez or his designees in top management and board positions.
The covenants also cover voting control over First Gen’s shares in PHEI, board composition and the Lopez family’s ownership stake in FPH, which must remain at a minimum threshold.
“BDO’s commitment terms are clear that maintaining the role of Piki in the FPH is critical, such that replacing Piki will trigger defaults in the loan agreements of FPH,” the statement read. “Such a structure not only ensures that the FPH group maintains a unified strategic direction under Piki, but underscores the link between the FPH’s financial footing and its leadership under Piki.”
The development comes as tensions within the Lopez family continue to ripple across their corporate holdings, including First Gen and ABS-CBN Corp.
In a separate statement, ABS-CBN’s board of directors and advisors expressed support for the company’s leadership under CEO Carlo Katigbak.
The board said it remains confident in ABS-CBN’s ability to execute its recovery plan despite losing its broadcast franchise, citing its continued pivot as a content provider.
‘An institution’
It also described ABS-CBN as “an institution” that continues to serve the public and reaffirmed its commitment to employees, artists, journalists and audiences.
The statement signals internal backing for management at a time when the broader Lopez group is navigating governance challenges.
The development comes amid an ongoing leadership dispute within the Lopez family, previously marked by court-issued injunctions blocking moves to unseat Piki as head of Lopez Inc.
The majority shareholders of family holding firm Lopez Inc., led by Eugenio “Gabby” Lopez III, earlier claimed that Piki had proposed shutting down the network last year, adding that such a move could have jeopardized thousands of jobs.
