Prime Infra secures P47B loan deal for acquisition of First Gen's gas assets

Razon-led Prime Infrastructure Capital Inc. on Thursday announced it has secured a P47-billion loan financing deal with two of the country’s largest banks to fund its acquisition of 60% ownership in Lopez-owned First Gen Corporation’s gas assets in Batangas.

In a news release, Prime Infra said the omnibus loan and security agreement was inked on November 12, 2025, through a ceremonial signing attended by Prime Infra chairman Enrique Razon Jr. and president and CEO Guillaume Lucci, along with representatives from BDO Unibank Inc. and Bank of the Philippine Islands (BPI) as lenders, and BDO Capital as mandated lead arranger and bookrunner. 

Also present during the ceremony were BDO chairperson 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.

Early this week, Prime Infra announced it has completed the acquisition for P50 billion of First Gen’s 60% stake in the 1000-megawatt (MW) Santa Rita Power Plant, 500-MW San Lorenzo Power Plant, 450-MW San Gabriel Power Plant, 97-MW Avion Power Plant, and the proposed 1200-MW Santa Maria Power Plant. 

“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,” Lucci said.

Following the transaction, First Gen maintains a 40% interest in the gas assets.

The deal also entails the acquisition of a 60% stake in the offshore liquefied natural gas (LNG) terminal, with First Gen and Japan’s Tokyo Gas owning 20% each.

Prime Infra is the infrastructure arm of the Razon Group, investing in, developing, and operating critical assets in essential sectors such as sustainable energy, water, and waste management. 

Among its assets are Manila Water Company Inc., a publicly listed water utility that supplies water to over 7.7 million Filipinos; Prime Energy, the operator of the Malampaya deepwater gas-to-power project; and Prime Waste Solutions, a company focused on turning waste into value.

Meanwhile, First Gen is the publicly listed power generation company of the Lopez Group. 

Aside from its newly established partnership with Prime Infra in natural gas, First Gen operates a portfolio of renewable energy, which includes geothermal, hydro, wind, and solar power. 

Through its geothermal power unit, Energy Development Corporation, it is also developing geothermal prospects in Indonesia in partnership with PT DSSR Daya Mas Sakti, a subsidiary of the Sinar Mas group of Indonesia. –NB, GMA Integrated News