First Gen buys back old notes

First Gen Corp. said Thursday it bought back some of its notes due 2023 which are listed at Singapore Exchange Securities Trading Ltd. from the market to reduce debt.

“In connection with First Gen Corp.’s Reg S US$300 million, 6.5 percent fixed rate notes due to 2023 which are listed on the Singapore Exchange Securities Trading Ltd., please be advised that the company has decided to purchase some notes from the market,” First Gen said in a disclosure to the stock exchange.

The company did not say how much it purchased from the market.

First Gen raised $300 million through a 10-year, non-call senior unsecured bond in October 2013 that was listed at the Singapore Exchange, a move that reflected investor confidence in the company.

“As part of FGen’s debt reduction plan, we purchased some of its US bonds listed in the Singapore Exchange,” First Gen chief finance officer Emmanuel Singson said.

The power company is embarking on initiatives to deleverage and reduce foreign currency debt exposure.

First Gen and subsidiary Northern Terracota Power Corp. earlier tendered their 992 million and 982 million shares respectively in Energy Development Corp. to Philippines Renewable Energy Holdings Corp. for P7.25 per share.

First Gen earlier said it would use proceeds to pay debt and fund growth projects.

The company said recurring net income attributable to equity holders of the parent amounted to $84 million in the first semester, down 4 percent from $87 million it earned in the same period last year.

First Gen posted a net income after tax of $101 million in the six-month period, lower than $162 million a year ago.

Attributable net income was also lower at $58 million, compared to $113 million in the same period last year.

“We look forward to a better second half as initiatives like our debt reduction program, the EDC tender offer of Macquarie and GIC of Singapore, and the contracting of San Gabriel’s output fall into place. This is a positive period of transformation for the company,” First Gen president Francis Giles Puno said earlier.

First Gen’s consolidated revenues from the sale of electricity increased to $851 million in the first half from $804 million a year ago.