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Brix Lelis - The Philippine Star
March 1, 2025 | 12:00am
SPNEC, through Terra Solar Philippines Inc., signed a 15-year omnibus loan and security agreement with BDO Unibank Inc., Bank of the Philippine Islands, Philippine National Bank, Security Bank Corp., China Banking Corp. and Metropolitan Bank & Trust Co.
Business World / MICHAEL WILSON-UNSPLASH
MANILA, Philippines — Pangilinan-led SP New Energy Corp. (SPNEC) has secured a P150-billion financing deal from a consortium of six local banks to fund the construction of MTerra Solar in Central Luzon.
SPNEC, through Terra Solar Philippines Inc., signed a 15-year omnibus loan and security agreement with BDO Unibank Inc., Bank of the Philippine Islands, Philippine National Bank, Security Bank Corp., China Banking Corp. and Metropolitan Bank & Trust Co.
The deal, disclosed to the Philippine Stock Exchange yesterday, will fund the ongoing development of MTerra Solar, which is poised to become the world’s largest integrated solar and battery storage facility.
BDO Capital & Investment Corp. acted as the lead arranger and bookrunner for the transaction, with BDO Trust and Investments Group serving as the facility agent and security trustee.
Picazo Buyco Tan Fider & Santos was tapped as Terra Solar’s legal counsel, while Romulo Buenaventura served as the banks’ legal counsel.
A market analyst from China Bank Capital Corp., which co-arranged the deal, believes that the country’s top private lenders are optimistic about the potential of MTerra Solar.
“The country’s leading banks have full confidence in this landmark renewable energy project due to its good prospects and high-quality sponsors as well as the importance of this undertaking for the country’s energy security,” China Bank Capital managing director Juan Paolo Colet told The STAR.
Straddling the provinces of Nueva Ecija and Bulacan, MTerra Solar consists of 3,500 megawatts of solar panels paired with 4,500-MW hours of battery energy storage system components.
The Meralco Group took over the project in 2023 after acquiring a controlling stake in SPNEC through MGen Renewable Energy Inc., the renewable energy arm of Meralco PowerGen Corp.
In September last year, Meralco and SPNEC welcomed the entry of UK-based investment house Actis into the project, selling 40 percent of Terra Solar for $600 million (about P34 billion).
The first phase of MTerra Solar is scheduled for completion by 2026, with the second phase expected to follow in 2027.
Upon completion, the project will provide clean and sustainable power to around 2.4 million households in Luzon.
