The Market Monitor Minding the Nation's Business
The Land Bank of the Philippines (LANDBANK) is extending the bulk of a P100-billion Syndicated Term Loan Facility to the Power Sector Assets and Liabilities Management Corporation (PSALM) to boost fiscal sustainability and energy sector reforms.
LANDBANK committed P60 billion, or 60% of the facility, which will be used to augment PSALM’s working capital, refinance existing liabilities, and settle domestic contractual obligations.
The loan agreement was signed on July 17, 2025, by PSALM President and CEO Dennis Edward A. Dela Serna, LANDBANK President and CEO Lynette V. Ortiz, and DBP President and CEO Michael O. de Jesus, with Government Corporate Counsel Judge Solomon M. Hermosura as witness.
“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 strengthen 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.
LANDBANK and DBP served as Joint Lead Arrangers, with LANDBANK–Trust Banking Group as Facility and Paying Agent, and the Office of the Government Corporate Counsel (OGCC) as Transaction Counsel.
The facility will support PSALM’s mandate under the Electric Power Industry Reform Act (EPIRA) to manage, privatize, and liquidate the remaining assets and financial obligations of the National Power Corporation.
LANDBANK has partnered with PSALM since 2008, providing key financing for its programs, while also supporting major energy players — from oil companies to power producers and distribution utilities — as part of its broader role in advancing national development.