Aboitiz Power secures P20-B loan from Landbank for RE

BY LENIE LECTURA – JANUARY 6, 2023
from Business Mirror

Aboitiz Power Corp. (Aboitiz Power), through its clean energy subsidiary Aboitiz Renewables Inc. (ARI), has secured a P20-billion loan from the Land Bank of the Philippines (Landbank) to help attain its goal of growing its renewable energy (RE) portfolio to a total of 9,200 megawatts (MW).

Aboitiz Power said last Thursday that the long-term debt financing would fund ongoing expansion and development projects, including constructing new RE power plants.

“This loan will allow us to continue providing clean and sustainable energy to help meet the growing demand in the country,” Aboitiz Power Chief Renewables Officer James A. Villaroman.

The power firm is targeting to grow its RE portfolio to 4,600MW or half of the total 9,200 MW capacity, alongside its thermal assets, which the company targets to generate by 2030. Villaroman said the loan facility aligns with Aboitiz Power’s 10-year RE growth strategy.

The power firm will spend P190 billion within this decade for an additional 3,700 MW of clean energy capacities. As of November 2022, the company has over 1,000 MW of disclosed and ongoing RE projects, which include solar, floating solar, hydro, and onshore wind.

Aboitiz Power Chief Financial Officer Liza Luv T. Montelibano said the loan is a testament to the company’s strong financial position and its lending partners’ trust in the organization.

“We look forward to continuing to work with Landbank and other financial institutions as we drive the growth of renewable energy in the country,” Montelibano said.

Aboitiz Power recently entered into a joint venture agreement with RE firm Mainstream Power to develop a 90-MW onshore wind project in Libmanan, Camarines Sur.