BDO backs leadership continuity in First Gen-Prime Infra deal

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April 18, 2026 | 12:00am

MANILA, Philippines — The Sy family’s BDO Unibank Inc. has backed leadership continuity as far as First Gen Corp.’s hydropower deal with the Razon group’s Prime Hydropower Energy Inc. (PHEI) is concerned.

In a stock exchange filing, First Gen said BDO Unibank Inc. has issued standby letters of credit (SBLCs) in the amount of P9.9 billion and P14.85 billion in support of First Gen’s acquisition of a 33-percent stake in PHEI.

First Gen’s wholly–owned subsidiary FGEN Aqua Power Holdings Inc. now owns 33 percent of PHEI, which is currently constructing the 600-megawatt (MW) Wawa and 1,400-MW Pakil pumped storage hydro projects.

First Gen said the issuance of the SBLCs was made conditional on covenants required by BDO to ensure leadership continuity across operating segments and subsidiaries of the First Philippine Holdings Corp. (FPH) group of companies.

“BDO’s issuance of the SBLCs in support of First Gen’s acquisition of a 33-percent stake in the pumped storage hydro projects, coupled with contractual arrangements on the change in management control, demonstrates the bank’s recognition that the continued active involvement of FRL (Federico “Piki” Lopez) in the FPH group is necessary, vital and indispensable,” the company said.

First Gen further said that BDO’s commitment terms are clear that maintaining the role of Piki in the FPH group is critical, such that replacing him will trigger defaults in the loan agreements of the FPH group.

“Such a structure not only ensures that the FPH group maintains a unified strategic direction under FRL, but underscores the link between the FPH group’s financial footing and its leadership under FRL,” the company said.

According to First Gen, the leadership continuity covenants provide, among others, that the occurrence of a change of management control is an event of default in outstanding loans of the FPH group.

Meanwhile, members of the ABS-CBN board of directors and board of advisors yesterday expressed their support to the leadership team headed by the media company’s CEO Carlo Katigbak.

“Notwithstanding the loss of its broadcast franchise, we believe in its qualities as a content-provider, allowing it to pivot its business model and return to profitability. We back the leadership team headed by CEO Carlo Katigbak and are confident in its ability to execute its recovery plan,” they said in a statement.

“ABS-CBN is more than a media company. It is an institution that has served Philippine democracy and the Filipino people for generations — a mission that remains vital and very much alive. We are committed to its employees, its artists and journalists, and the public it continues to serve,” the members said.

The statement was issued by directors Randolf David, Emmanuel de Dios, Rafael Lopez, Honorio Poblador and Martin Lopez, and advisors Charo Santos-Concio, Federico Garcia, Salvador Tirona, Antonio Periquet, Cynthia del Castillo and Cesar Purisima.

“We, the undersigned members of the ABS-CBN board of directors and board of advisors, believe in ABS-CBN as an institution and the value it creates for the viewing public,” they said.

ABS-CBN earlier rebutted false claims and attacks against the company, while also confirming that one of its directors proposed the firm’s shut down.

The Lopez family majority has claimed that Piki, in refusing to fund the network, proposed instead to close down and liquidate ABS-CBN last year.