UK firm takes 40% of Terra Solar for P34 billion

MANILA, Philippines — Tycoon Manuel V. Pangilinan’s Manila Electric Co. (Meralco) has secured a P34-billion investment from UK-based private equity firm Actis to boost the development of the world’s largest solar project.

The companies signed a strategic partnership last Friday, with Meralco unit SP New Energy Corp. (SPNEC) agreeing to issue shares equivalent to a 40-percent stake in Terra Solar Philippines Inc. to Actis.

SPNEC president and CEO Emmanuel Rubio said the strategic deal marked the beginning of a “formidable partnership – one that will shape the future of the energy industry in the Philippines.”

“Beyond an international reach, our partnership with Actis serves as an additional impetus for Meralco to occupy a space in the renewable energy landscape in the country,” Rubio said.

SPNEC, through Terra Solar, is developing a P200-billion solar farm, which will consist of 3,500 megawatts of solar panels and 4,000 MW-hours of battery storage.

The project straddling the provinces of Nueva Ecija and Bulacan will be completed in phases with the first phase by 2026 and the second phase by 2027.

The Meralco Group took control of SPNEC in December 2023 after acquiring P15.9 billion worth of shares. This was followed by a purchase of additional 2.17 billion shares in February through unit MGen Renewable Energy Inc.

Last Tuesday, MGreen entered into an exchangeable note facility and security agreement with Solar Philippines Power Project Holdings Inc.

Under the deal, MGreen extended a one-year loan to Solar Philippines that is exchangeable into 5.8 billion SPNEC shares at maturity.

This will bring the total investment of the Meralco Group in SPNEC to P27.9 billion for 25.3 billion shares, equivalent to 50.5 percent of the solar company.