BANK of the Philippine Islands (BPI) has funded the acquisition of First Gen Corp.’s gas assets by Prime Infrastructure Capital, Inc. (Prime Infra) as part of the bank’s investments in renewable energy.
“This partnership reflects BPI’s continued support for projects that reinforce the country’s energy resilience,” BPI Institutional Banking Head Luis Geminiano E. Cruz said in a statement on Thursday. “We value leveraging our expertise in structuring complex, large-scale financing facilities that enable industry players to deliver viable and reliable energy solutions for the nation.”
BPI said it loaned 40% of the Razon-led Prime Infra’s P47.07-billion acquisition of the 60% stake in First Gen’s gas-fired power plants in Batangas City. First Gen and Japan’s Tokyo Gas each retain a 20% share.
These assets include 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 Plant, and the proposed 1,200-MW Santa Maria Power Plant.
“The transaction is a milestone in securing the country’s energy future,” Prime Infra President and Chief Executive Officer Guillaume Lucci said in the statement. ‘With reliable LNG (liquified 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.”
The Philippine Competition Commission (PCC) approved the acquisition in October.
BPI said the power plants will help address increasing demand, mitigate supply constraints and enhance overall system reliability.
The acquisition will also contribute to the country’s transition to more dependable power sources, enabling stable supply as the Philippines transitions to renewable energy, it added.
“As the country faces growing power demand, BPI reaffirms its role as a catalyst for ensuring a stable energy supply system to enable long-term economic growth through responsible, forward-looking financing.”
BPI’s net income rose by 5.2% year on year to P50.5 billion in the first nine months of the year as revenue growth outpaced the rise in expenses.
BPI’s shares closed at P110.70 apiece on Thursday, up 2.98% or P3.20 from the previous day’s close. — Aaron Michael C. Sy
