Metrobank Group hikes investments in RE projects

MANILA, Philippines - The Metrobank Group is intensifying its efforts on the development of renewable energy sources in the Philippines, a top official said.

First Metro Investment Corp. (FMIC) president Francisco Sebastian said FMIC and Global Business Power Corp. will join forces to work closely on various partnership for renewable energy developments.

Sebastian said the team up was conceived to draw and synergize on the expertise of FMIC in project finance and the experience of Global Power in developing power projects. 

“It is hoped that with this joint cooperation, renewable project proposals can be realized thereby promoting and encouraging investments in this sector,” he said.

FMIC supports the expansion of the power generation sector as key to the country’s economic development and believes that renewable energy alternatives should be pursued as a priority. 

With the passage of the Renewable Energy Act, the Department of Energy (DOE) expects to generate 4,000 megawatts (MW) of renewable energy capacity in the medium term that is foreseen to provide up to 40 percent of the country’s primary energy requirement.

FMIC’s role will be to structure the funding requirements of renewable energy projects, either equity or borrowed funds. It shall also undertake raising project finance on commercial terms, or where available and applicable from special funding sources like multilateral agencies and international development funders.

Global Power, on the other hand, shall lend assistance on establishing the commercial viability of the proposed projects including commercial agreements, tariff setting as well as technical support in terms of fuel supply and technology validation.

 “The key to realizing the potentials of the renewable energy projects in the Philippines is establishing the business viability and financial feasibility of these projects that will make these projects bankable on a commercial basis. While the passage of the Renewable Energy Act tilts the balance towards energy from renewable sources, there is a need to bridge the gap between these projects and the reality of generating bank financing for these projects,” he said.

Over the last two years, FMIC has raised over $1.5 billion for the power sector and expects to generate more as the environment is now ready for new investments, new undertakings and commitments. 

Last year, FMIC and Global Power sponsored the Renewable Energy Summit Philippines and the Renewable Energy Conference and Expo Manila which were organized to increase awareness and understanding of the growth potential of renewable energy and how it could greatly contribute to the country’s economic growth and stability.

“We recognize that the power industry is very critical in the development of our economy,” Arthur Aguilar, senior executive vice president of Global Power said. 

“At the same time, we have a huge advantage of having renewable energy sources in the country which should be tapped. First Metro and Global Power hope to make a significant contribution through various growth initiatives and funding programs.”

Founded in 1972, FMIC is investment banking arm of Metropolitan Bank and Trust Co. (Metrobank), the Philippines’ largest financial conglomerate. Global Power, on the other hand, is the main power unit of the Metrobank Group.