2 weeks ago
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Terra Solar Philippines Inc. (MTerra Solar), a unit of SP New Energy Corporation (SPNEC), announced it has secured a ₱150 billion omnibus loan and security agreement (OLSA) with six local banks.
In a disclosure to the Philippine Stock Exchange on Friday, Feb. 28, MTerra Solar said the 15-year OLSA with BDO Unibank Inc., Bank of the Philippine Islands (BPI), Philippine National Bank (PNB), Security Bank Corporation (SB), China Banking Corporation (China Bank), and Metropolitan Bank & Trust Company (Metrobank).
SPNEC stated that the OLSA outlines loan terms, collateral, and cross-collateralization for multiple loans under one agreement, with financing following a 75-25 debt-to-equity ratio. The total project cost is ₱200 billion, funding what is anticipated to be the world's largest solar and battery facility in Central Luzon.
The funds will support ongoing development of the solar photovoltaic (PV) facility and battery energy storage system (BESS).
BDO Capital & Investment Corporation served as the lead arranger and bookrunner, while BDO Unibank Inc. Trust and Investments Group acted as the facility agent and security trustee.
“Picazo Buyco Tan Fider & Santos served as MTerra Solar’s legal counsel, and Romulo Mabanta Buenaventura Sayoc & De Los Angeles served as the banks’ legal counsel for this transaction,” SPNEC added.
Previously, in November, SPNEC announced it had engaged China Energy Engineering Group Co. Ltd. (Energy China) to manage procurement, design, permitting, manufacturing, testing, logistics, and on-site delivery of the project.
Once operational, the 3,500 megawatt-peak (MWp) solar plant and 4,500 megawatt-hour (MWh) BESS will supply clean energy to approximately 2.4 million households and reduce carbon emissions by 4.3 million tons.
The project's first phase will develop 2,500 MW of capacity, with a 600 MW block expected by February 2026.
