FIRST Gen Corp. (First Gen) said Wednesday its wholly owned subsidiary Unified Holdings Corp. plans to offer debt securities to raise much-needed capital.

In a disclosure to the Philippine Stock Exchange, First Gen said it has hired Deutsche Bank AG and JP Morgan Securities Ltd. to help its unit—which owns 60 percent of First Gas Philippines Corp.—meet with credit investors.

Deutsche Bank and JP Morgan are very much interested in arranging a series of meetings with potential investors in Europe and Asia.

First Gen also clarified that there will be no public offer of securities in the US and that the debt securities may not be offered or sold in US, except pursuant to an exemption from the registration requirements of the Securities Act.

First Gen told the exchange it has been in discussion with its subsidiaries, as well as several financial institutions concerning its financial plans.

The country’s largest nongovernment power producer earlier said it is looking at selling a portion of its minority stake in Red Vulcan Holdings Inc., which holds a 60-percent stake in Philippine National Oil Co.-Energy Development Corp., to reduce its debts.

Francis Giles B. Puno, chief finance officer of First Gen, said they should be in a position where the only debt it has at the parent level will be the convertible bond issuance.

Richard Tantoco, chief operating officer of First Gen, said they are also in the process of discussing with potential bidders. He did not elaborate.

“So there are actually simultaneous discussions going on right now. We’re targeting to get something done, probably by the month of June or some time in the third quarter. Our decision will also depend on the best value for both technical and financial, [[or] whoever who has the most to bring to the table and is willing to pay our price,” Tantoco added.

THE reporting system imposed on banks that trade government securities using the platform of the Philippine Dealing and Exchange Corp., or Pdex, forces banks to violate deposit- secrecy rules.

THE peso yesterday extended its loss after oil prices soared to record levels, raising import cost and increasing corporate demand, currency traders said.  

THE Philippine central bank, struggling to spur growth and slow the fastest inflation in three years, is reluctant to raise interest rates on concern it could boost the peso.

PHILIPPINE banks are lending themselves at levels prevalent prior to the 1997 financial crisis, the Bangko Sentral ng Pilipinas (BSP) said Wednesday.

THE Land Bank of the Philippines is extending P4.3 billion as credit to qualified growers of jatropha, the bank said Wednesday.

The qualified growers include cooperatives, small and medium entrepreneurs and farmers’ organizations.

FIRST Gen Corp. (First Gen) said Wednesday its wholly owned subsidiary Unified Holdings Corp. plans to offer debt securities to raise much-needed capital.