The Social Security System (SSS) has expressed confidence in the stability of First Gen Corp., pushing back against concerns raised by the Lopez majority bloc over potential risks tied to the company's investments.
In a statement, the state pension fund said it remains a "long-time partner" of the Lopez Group and expressed hope that internal family issues would be resolved constructively for the benefit of all stakeholders, including SSS.
SSS noted that its exposure to the Lopez Group represents less than one percent of its investible reserve fund, suggesting any financial impact would be limited. Based on the April 30 closing price of P16.56 per share, SSS's stake in First Gen is valued at over P1 billion, while the Government Service Insurance System's (GSIS) stake is nearly P1 billion.
Earlier, the Lopez majority claimed that government pension funds and global investment firm KKR & Co. could face billions in losses if so-called "poison pill" provisions tied to First Gen were triggered. The provisions, embedded in transactions with Prime Infrastructure Capital Inc., would allow a forced buyout of certain assets at a 25-percent discount in the event of a change in management control.
The pension fund, however, cited feedback from its commissioner on the board of First Philippine Holdings Corp., the Lopez Group's flagship holding firm, stating that "governance is solid, disclosures to the Philippine Stock Exchange are timely and accurate, and management is sound."
SSS also highlighted its strong financial position, reporting a 10-percent increase in topline revenues to P125 billion in the first quarter of 2026, while net income rose 14 percent to P30 billion.