Meralco PowerGen and Security Bank collaborate on $2.79 billion solar initiative in the Philippines

Meralco PowerGen Corp. (MGen) announced that its subsidiaries have provided total financing for solar energy initiatives amounting to P2.79 billion through Security Banking Corp.

MGen revealed that its renewable energy arm, MGen Renewable Energy Inc. (MGreen), successfully obtained financing for two solar projects with a total capacity of 67.75 megawatts.

MGreen President and CEO Jaime Azurin said this agreement represents not just a formal agreement, but a commitment to progress and a shared vision for a sustainable future. The funding is expected to facilitate development, encourage innovation and create opportunities that will bring far-reaching benefits.

Greenergy for Global Inc. (GGI) has received P2.034-billion 15-year project financing from Security Bank to support the construction of a 49-MW solar project in Cordon, Isabela. Similarly, Greentech Solar Energy Inc. (GSEI) has secured 15-year project financing worth P791.00 million from Security Bank for the construction of an 18.75 MW solar power plant in Bongabon, Nueva Ecija.

Security Bank’s Asset Management and Trusts Group acted as loan agent and security trustee, while legal representation was provided by law firms Puno and Puno for the borrowers and Romulo Mabanta Buenaventura Sayoc & De Los Angeles for the lender.

Both GGI and GSEI won the second round of the Department of Energy’s Green Energy Auction Program. These projects are an integral part of MGreen’s strategy to increase solar power generation capacity and contribute significantly to national renewable energy targets.

The target commercial operation of both solar power plants is planned for the first quarter of 2025.

Security Bank Senior Vice President Louie Maloles emphasized that this collaboration highlights the bank’s commitment to sustainable financing in line with the industry’s efforts towards environmental responsibility.

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