Meralco PowerGen closes P150-B loan for Terra Solar project

MANILA, Philippines - Meralco PowerGen Corp. (MGen) said Tuesday it had closed its P150-billion financing to fund its mammoth solar farm in Luzon. MGen touted this as the biggest syndicated loan yet in the Philippines.

The loan deal was backed by the country’s major lenders: BDO Unibank, Inc., Security Bank Corp., China Banking Corp., Philippine National Bank, Metropolitan Bank & Trust Co., and Bank of the Philippine Islands.

It said BDO Capital & Investment Corp. was the sole mandated lead arranger with BDO Unibank, Inc. - Trust and Investments Group serving as facility agent and security trustee.

READ: British investor completes purchase of 40% in Terra Solar

The closing of the transaction came almost two months after MGen, through its subsidiary Terra Solar Philippines Inc. (MTerra Solar), sealed a 15-year term omnibus loan and security agreement with the banks.

The remaining investment of about P50 billion, the company earlier said, would be internally funded.

MGen, the power generation arm of Manila Electric Co., has tasked SP New Energy Corp. (SPNEC) as the primary vehicle to develop the solar project in Nueva Ecija and Bulacan.

'World's largest'

Poised to become the largest solar facility once up and running by 2027, the MTerra Solar is designed to have 3,500 megawatts (MW) of solar panels and 4,000 MW-hours of battery storage.

The first phase of the project, with a target capacity of 2,500 MW, is eyed for completion by 2026.

The second phase, with a capacity of 1,000 M,W may go online by 2027.

As of end-March, completion rate stood at 35 percent, MGen said.

“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 the first quarter of 2026,” it said.

Last month, UK-based investment firm Actis’ also completed its acquisition of a 40-percent stake in MTerra Solar, which translated to a $600-million capital boost for the project.

MGen has a diverse portfolio of power generation assets. Its net sellable capacity from traditional and renewable sources is 4,953 MW.

(2025/04/23-08:30)