SINGAPORE-BASED Vena Energy and MGen Renewable Energy, Inc. (MGreen) have reached financial close on the 550-megawatt (MW) Bugallon Solar Power Project in Pangasinan.
“The financial close of the Bugallon Solar Power Project represents a significant milestone in advancing renewable power generation in the Philippines,” Simone Grasso, chief investment officer at Vena Energy, said in a statement on Wednesday.
“We appreciate the unwavering confidence and support of our banking partners in our initiatives. This facility will be instrumental in driving our growth in the Philippines as we continue to deliver innovative green solutions to our customers and accelerate the energy transition across the Asia Pacific region,” he added.
Slated for completion by the fourth quarter of 2025, the project is expected to generate approximately 958 gigawatt-hours of clean energy annually, equivalent to powering more than 810,000 households.
The solar project is financed partly through an P18.3-billion green loan facility with Security Bank Corp., Rizal Commercial Banking Corp., and Philippine National Bank serving as lenders and hedging banks.
SB Capital Investment Corp., RCBC Capital Corp., and PNB Capital and Investment Corp. are the mandated lead arrangers, while RCBC serves as the green loan coordinator.
Vena Energy and MGreen signed an investment agreement to jointly develop, construct, and operate the solar project last year.
In 2023, MGen and Vena launched the commercial operations of their 68-MW solar power project in Currimao, Ilocos Norte.
Vena Energy owns, develops, constructs, and operates a renewable energy portfolio of onshore wind and solar, offshore wind, and energy storage projects totaling 39 gigawatts.
MGreen is a subsidiary of power distributor Manila Electric Co. (Meralco). It owns and operates Global Business Power Corp. and MGreen, which are focused on using advanced and highly efficient technologies that provide reliable and cost-competitive power to customers.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera