The Market Monitor Minding the Nation's Business
A consortium of Philippine banks has extended an P18.3 billion green loan to finance the 550-megawatt Bugallon Solar Power Project in Pangasinan.
The project, spearheaded by Vena Energy and MGen Renewable Energy Inc. (MGreen), the renewables arm of Meralco PowerGen Corp., is slated for completion by the fourth quarter of the year. Once operational, it is expected to produce 958 gigawatt-hours of clean energy annually, enough to power over 810,000 households while cutting greenhouse gas emissions by 640,000 tons—equivalent to planting 11 million trees.
The financing was led by Security Bank Corp., Rizal Commercial Banking Corp. (RCBC), and Philippine National Bank (PNB), which also served as hedging banks.
RCBC acted as the green loan coordinator, while SB Capital Investment Corp., RCBC Capital Corp., and PNB Capital and Investment Corp. served as mandated lead arrangers.
“The financial close of the Bugallon Solar Power Project represents a significant milestone in advancing renewable power generation in the Philippines,” said Simone Grasso, Chief Investment Officer at Vena Energy.
“We appreciate the unwavering confidence and support of our banking partners in our initiatives. This facility will be instrumental in driving our growth in the Philippines as we continue to deliver innovative green solutions to our customers and accelerate the energy transition across the Asia Pacific region”, Grasso added.
MGreen president and CEO Dennis B. Jordan said the project is “a definitive step toward a cleaner and sustainable energy future for the Philippines.”
The Bugallon project is set to create 7,000 jobs during its construction phase, with a strong focus on engaging the local workforce.
The deal signals the banking sector’s increasing focus on funding green energy initiatives, a critical component of the nation’s sustainable development goals.