Prime Infrastructure Capital, Inc. (Prime Infra) borrowed P47 billion from local banks to partly finance its gas deal with First Gen Corp.
The Razon-led firm said Thursday it signed last November 12 an omnibus loan and security agreement with BDO Unibank, Inc. and Bank of the Philippine Islands (BPI) to fund its acquisition of a 60-percent ownership stake in First Gen’s gas assets in Batangas.
It later on conducted a separate ceremonial signing attended by Prime Infra Chairman Enrique K. Razon Jr. and President and CEO Guillaume Lucci, along with BDO Chair Teresita Sy-Coson and Executive Vice President Charles Rodriguez, BDO Capital President Eduardo Francisco, and BPI Senior Vice President and Institutional Banking Head Luis Cruz.
BDO Capital as mandated lead arranger and bookrunner.
‘This partnership with our banking institutions reflects 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,’ said Lucci.
The financing deal supports Prime Infra’s acquisition of a controlling stake in the 1,000-megawatt (MW) Santa Rita power plant, the 500-MW San Lorenzo power plant, the 450-MW San Gabriel power plant, the 97-MW Avion power plant, and the proposed 1,200-MW Santa Maria power plant, solidifying its presence in the Philippine natural gas industry and supporting the country’s energy security goals. First Gen maintains a 40-percent interest in the assets.
Prime Infra now also holds a 60-percent stake in the offshore liquefied natural gas (LNG) terminal, with First Gen and Japan’s Tokyo Gas owning 20 percent each.
Lucci also highlighted the synergy of the gas assets with Prime Infra subsidiary Prime Energy Resources Development B.V., operator of the Malampaya deep-water gas-to-power project, the country’s only indigenous gas field. Together with the Malampaya consortium, Prime Energy is undertaking Phase 4 drilling and exploration to maximize the country’s indigenous gas resources.
The company has formed Prime CoreGen to manage the gas assets. It will be led by former energy undersecretary Emmanuel de Dios, who will retire as President and CEO of Manila Water Company, Inc. on December 31, 2025.
De Dios brings extensive experience in energy. From 2001 to 2004, he was Undersecretary of the DOE under then-President Gloria Macapagal-Arroyo, where he established the Natural Gas Office. He later chaired the Philippine National Oil Company – Exploration Corp. and led Australian oil exploration company Nido Petroleum Ltd. Prior to joining the Prime Infra Group, he was CEO of GE Philippines, managing diverse businesses including power generation, industrial solutions, and aviation.