SPNEC signs largest Philippines financing deal

MANILA, Philippines — SP New Energy Corp. (SPNEC) of tycoon Manuel V. Pangilinan has sealed a P150-billion syndicated loan – the largest in the Philippines – to bankroll the construction of MTerra Solar in Central Luzon.

The transaction involves 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. acted as the sole mandated lead arranger, with BDO Trust and Investments Group serving as facility agent and security trustee.

The financing deal, announced earlier this year, will provide much-needed financial muscle for the P200-billlion MTerra Solar, which is poised to become the world’s largest integrated solar and battery storage project.

Straddling the provinces of Nueva Ecija and Bulacan, the project 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 power arm of Meralco PowerGen Corp. (MGen).

Last month, the Meralco Group completed its $600-million “super deal” with UK-based investment house Actis for the sale of a 40-percent stake in Terra Solar Philippines Inc., which oversees the project.

“Started as an ambitious project, MTerra Solar is moving toward the direction of providing meaningful contributions to the government’s goal to have about 35 percent of the country’s energy come from renewable energy,” said Pangilinan, who chairs Meralco, MGen and SPNEC.

MTerra Solar, which broke ground last November, will be completed in phases: the first phase by 2026 and the second by 2027.