Vena reaches financial close for 550-MW solar project
By Alena Mae S. Flores – January 15, 2025, 7:55 pm
from manilastandard.net
Vena Energy, a leading green solutions provider in the Asia-Pacific region, in partnership with MGen Renewable Energy Inc. (MGreen), the renewable energy arm of Meralco PowerGen Corp. (MGen), reached financial close on the 550-megawatt (MW) Bugallon solar power project in Bugallon, Pangasinan.
The project is financed partly through a P18.3-billion ($325 million) green loan facility with Security Bank Corp., Rizal Commercial Banking Corp. (RCBC) and Philippine National Bank (PNB) 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 is the green loan coordinator.
“The financial close of the Bugallon solar power project represents a significant milestone in advancing renewable power generation in the Philippines,” said Vena Energy chief investment officer Simone Grasso.
“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,” Grasso said.
The project started construction and is expected to be completed by the fourth quarter of 2025.
About 7,000 employment opportunities are expected to be created during construction, with a strong focus on workforce participation from local communities in Bugallon and surrounding areas.
Once operational, the project will generate about 958-gigawatt hours (GWh) of clean energy annually, equivalent to powering more than 810,000 households while avoiding over 640,000 tons of greenhouse gas emissions or planting 11 million trees.
MGreen chief executive Dennis Jordan said the event marks not just the closing of a deal, but the beginning of an inspiring journey between two like-minded organizations.
“We bring our collective strengths and visions into alignment, enabling us to make a definitive step towards making a greater impact in the country’s journey towards a cleaner and sustainable energy future. Together, we are not only expanding our own horizons but also setting a powerful example for others to follow,” he said.
Security Bank senior vice president and corporate banking head Yvonne Marcelo said the bank supported Vena Energy and MGreen in the project—aligned with its commitment to finance sustainable initiatives promoting economic growth and environmental stewardship.
“This collaboration reflects our role in contributing to the Philippines’ renewable energy sector and supporting its sustainability objectives. Our BetterBanking mission ensures that we provide financial services while also engaging in efforts to improve our communities and the environment,” Marcelo said.
RCBC group head of corporate banking Elizabeth Coronel said RCBC continues to be at the forefront of the banking industry’s shift towards lending to more and more renewable energy projects in the country.
“As such, we are a proud partner of Vena Energy and MGreen in building one of the largest solar power projects in the Philippines. We have supported Vena Energy since their entry in the Philippine market almost a decade ago while we have a long-standing relationship with the Meralco (Manila Electric Co.) group across its various businesses. We look forward to more projects stemming from this partnership towards greening the country,” Coronoel said.
Meralco, the country’s biggest power retailer, is the parent firm of MGen.
