The Market Monitor Minding the Nation's Business
State-owned Land Bank of the Philippines (LandBank) will extend P60 billion to the Power Sector Assets and Liabilities Management Corporation (PSALM) to help advance the government’s energy sector reform program.
In a statement last week, LandBank said the amount forms part of a P100-billion Syndicated Term Loan Facility for PSALM, with the remaining P40 billion to be provided by the Development Bank of the Philippines (DBP).
LandBank and DBP acted as joint lead arrangers for the syndicated deal, with LandBank – Trust Banking Group serving as facility and paying agent, and the Office of the Government Corporate Counsel as transaction counsel.
Proceeds of the loan will be used to augment PSALM’s working capital, refinance existing liabilities, and settle domestic contractual obligations.
The financing will also enable PSALM to carry out its mandate under the Electric Power Industry Reform Act (EPIRA), which includes managing, privatizing, and liquidating the remaining assets and financial obligations of the National Power Corporation.
The loan agreement was signed on July 17, 2025 by PSALM President and CEO Dennis Edward Dela Serna, LandBank President and CEO Lynette Ortiz, and DBP President and CEO Michael de Jesus.
“We are honored to be part of this important milestone, alongside our partners in government and development finance. This transaction reflects our collective resolve to strengthening the Philippine power sector — an industry that is fundamental to shaping the future of our economy and uplifting the lives of every Filipino,” Ortiz said.