Meralco PowerGen Unit Signs Largest PH Financing Deal

(L-R): Metropolitan Bank & Trust Company Executive Vice President and Head of Institutional Banking Sector Mary Mylene A. Caparas; China Banking Corporation Executive Vice President and Head of Institutional Banking Segment Lilian Yu; MGEN President and CEO Emmanuel V. Rubio; BDO Unibank, Inc. President Nestor V. Tan; Meralco Chairman and CEO Manuel V. Pangilinan; Security Bank Executive Vice President and Head of Wholesale Banking Segment John Cary L. Ong; MTerra Solar President and CEO Dennis B. Jordan; Philippine National Bank President Florido P. Casuela; and Bank of the Philippine Islands Senior Vice President and Head of Commercial Banking Luis Geminiano E. Cruz.

Meralco PowerGen Corporation (MGEN), through its affiliate Terra Solar Philippines Inc. (MTerra Solar), has 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 MWp of solar and 4,500 MWh of battery energy storage capacity, is a critical step in meeting the country’s goal of 35% renewable energy share by 2030, and 50% by 2040.

The deal was closed in partnership with top-tier banking institutions: BDO Unibank, Inc., Security Bank Corporation, China Banking Corporation, Philippine National Bank, Metropolitan Bank & Trust Company and Bank of the Philippine Islands. BDO Capital & Investment Corporation was sole mandated lead arranger with BDO Unibank, Inc. – Trust and Investments Group serving as facility agent and security trustee.

As of end-March 2025, the project has reached 35% overall progress. Once completed, MTerra Solar will supply 850 MW 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.

Meralco PowerGen Corporation (MGEN) operates a diverse portfolio of power generation assets equipped with advanced technologies. Its main subsidiaries include Global Business Power (MThermal), MGEN Renewable Energy Inc. (MGreen), and MGEN Gas Energy Holdings, Inc. (MNatural Gas). Additionally, MGEN holds stakes in PacificLight Power (PLP), a Liquefied Natural Gas facility in Singapore, and SP New Energy Corporation (SPNEC), a renewable energy company. Recently, MGEN has invested a 40.2% stake in an integrated LNG facility in Batangas, Philippines. Across its portfolio, MGEN has a combined net sellable capacity of 4,953 MW from traditional and renewable sources as of March 2025.

Terra Solar Philippines Inc. (MTerra Solar) is the project company developing the MTerra Solar Project, set to be the world’s largest integrated solar and battery storage facility. Spanning four municipalities across Nueva Ecija and Bulacan, the project will generate 3,500 MWp of solar power complemented by a 4,500 MWhr battery energy storage system.
The project will be developed in two phases with first phase expected to be completed in Q1 2026, and the second phase a year after. The project will supply clean energy to approximately 2.4 million households. Beyond power generation, it will also contribute to carbon reduction by avoiding 4.3 million tons of emissions annually.