Meralco PowerGen Corp. (MGEN), through its affiliate Terra Solar Philippines Inc. (MTerra Solar), has formally closed a record P150-billion syndicated loan to finance the world’s largest integrated solar and battery energy storage project.

MTerra Solar confirmed on Tuesday the closing of the financing deal — the biggest of its kind in the Philippines — which will support the development of a renewable energy facility with 3,500 megawatt-peak of solar capacity and 4,500 megawatt-hours of battery energy storage.

Supportive of government targets

The project supports the government’s targets to hit 35 percent renewable energy share by 2030 and 50 percent by 2040.

BDO Capital & Investment Corp. served as the sole mandated lead arranger.

The lending consortium includes BDO Unibank Inc., Security Bank Corp., China Banking Corp., Philippine National Bank, Metropolitan Bank & Trust Co. and Bank of the Philippine Islands. BDO Unibank’s Trust and Investments Group is acting as facility agent and security trustee.

35 percent complete

As of March, the project is 35 percent complete. Upon full completion, MTerra Solar will supply 850 MW of mid-merit renewable energy to Manila Electric Co. under a Power Supply Agreement.

Construction activities are in full swing, including work on the substation, solar panel structure assembly, and transmission line development. These are expected to support Phase 1 commercial operations and energy delivery by the first quarter of 2026.