Meralco PowerGen Corp. (MGen) has successfully closed a landmark P150-billion syndicated loan to finance the development of its massive solar power project in Luzon, marking the largest loan syndication in the Philippines to date.
The financing will support the construction of the MTerra Solar project, spearheaded by MGen’s subsidiary, Terra Solar Philippines Inc. The solar farm, located across Nueva Ecija and Bulacan, is projected to become the world’s largest once operational.
The syndicated loan was backed by leading financial institutions including BDO Unibank, Inc., Security Bank Corp., China Banking Corp., Philippine National Bank, Metropolitan Bank & Trust Co., and Bank of the Philippine Islands. BDO Capital & Investment Corp. acted as the sole mandated lead arranger, while BDO Unibank, Inc. – Trust and Investments Group served as facility agent and security trustee.
The funding agreement follows the execution of a 15-year omnibus loan and security agreement with participating banks, finalized nearly two months prior. MGen noted that an additional P50 billion required for the project will be internally financed.
MGen has designated SP New Energy Corp. (SPNEC) as the lead developer for the solar facility, which is designed to host 3,500 megawatts (MW) of solar panel capacity and 4,000 MW-hours of battery energy storage.
The first phase of the project, targeting 2,500 MW, is expected to be completed by 2026. The second phase, adding another 1,000 MW, is anticipated to go online by 2027. As of end-March, the project had reached 35% completion, with major construction activities in progress, including substation development, solar panel structure assembly, and transmission line installations.
In a separate development, UK-based investment firm Actis recently finalized its acquisition of a 40% equity stake in MTerra Solar, providing a capital infusion of $600 million to the initiative.
Once fully operational, the project is set to significantly enhance the country’s renewable energy capacity, aligning with national sustainability goals and positioning the Philippines as a key player in the global clean energy landscape.
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