MGEN unit signs largest PH financing deal

MERALCO PowerGen Corp. (MGEN), through its affiliate Terra Solar Philippines Inc. (MTerra Solar), closed the Philippines' largest syndicated loan at P150 billion to fund the world's biggest integrated solar and battery energy storage project.

The project, which will deliver 3,500 megawatt-peak of solar and 4,500 megawatt-hours of battery energy storage capacity, is a critical step in meeting the country's goal of 35 percent renewable energy share by 2030 and 50 percent by 2050.

The deal was closed in partnership with top-tier banking institutions: 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. was sole mandated lead arranger with BDO Unibank Inc. – Trust and Investments Group serving as facility agent and security trustee.

SEALED PARTNERSHIP Meralco PowerGen Corp. (MGEN) unit seals P150-billion loan agreement for MTerra Solar Project, the world's largest integrated solar PV and battery energy storage system facility. Photo shows executives from MGEN, Meralco, MTerra Solar and several banking institutions. PHOTO FROM MGEN

As of end-March 2025, the project has reached 35 percent overall progress. Once completed, MTerra Solar will supply 850 megawatts of mid-merit renewable energy to Meralco under a Power Supply Agreement. Major construction works are underway, including the substation, solar panel structure assembly and transmission line development, signaling strong momentum toward commercial operations and energy delivery for Phase 1 in Q1 2026.