SPNEC secures P150B loan for MTerra Solar
- March 7, 2025
SP New Energy Corporation (SPNEC) announced that its subsidiary Terra Solar Philippines Inc. (MTerra Solar) inked a P150-billion loan from six local banks for the construction of its solar project in Nueva Ecija, Central Luzon.
An integrated renewables and energy storage project, MTerrra Solar will combine a 3,500-megawatt (MW) large-scale solar farm with a 4,500-MW battery energy storage system (BESS) facility that can energize more than two million households. Once completed, it is expected to be the biggest such project in the world.
(Also read: Renewables make up lion’s share of new energy projects in 2025)
Given the intermittent availability of renewable energy (RE) sources like wind and solar power, these clean sources of electricity need to be coupled with BESS facilities to store excess power and deploy them when demand is high.
The first phase of the project has a target capacity of 2,500 MW and is expected to be completed by next year. The second phase, with a capacity of 1,000 MW, could go online by 2027.
The MTerra Solar project is a 60:40 joint venture between SPNEC and Actis, a global investor in sustainable infrastructure. MGen Renewable Energy Inc., the renewable energy development arm of Meralco, owns a 53.7 percent majority stake in SPNEC.
(Also read: GEA-3 attracts 7,500 MW in renewable bids, exceeds gov’t targets)
The 15-year omnibus loan and security agreement was signed with BDO Unibank Inc., Bank of the Philippine Islands, Philippine National Bank, Security Bank Corporation, Metropolitan Bank & Trust Company, and China Banking Corporation.
A market analyst from China Bank Capital Corporation, one of the co-arrangers of the deal, believes that the leading private lenders in the country are confident in the prospects of MTerra Solar.
“The country’s leading banks have full confidence in this landmark renewable energy project due to its good prospects and high-quality sponsors as well as the importance of this undertaking for the country’s energy security,” China Bank Capital managing director Juan Paolo Colet shared.
Sources:
https://www.philstar.com/business/2025/03/01/2424896/spnec-signs-p150-billion-loan-mterra-solar
