Meralco secures P75-B loan to power LNG investment plans
MANILA, Philippines - Manila Electric Company (Meralco), the country's largest private electric distribution utility, will borrow a ₱75 billion loan from three major banks—Metropolitan Bank and Trust Co., Bank of the Philippine Islands, and BDO Unibank Inc. to fund liquefied natural gas (LNG) investment plans.
According to Chief Financial Officer Betty Siy-Yap, the 12-year credit facility will primarily fund Meralco's investments in LNG projects and other business requirements, and within a week, the funds are expected to be released.
The funding will support Meralco’s role in Project Chromite, a joint venture with Aboitiz Power Corp. through their respective units, Meralco PowerGen Corp. (MGen) and Therma NatGas Power Inc.
In Chromite Gas Holdings Inc. (CGHI), MGen owns 60% of the company, with AboitizPower holding the remaining 40%. CGHI is planning to invest in a 1,320-MW combined-cycle power station and a 1,278-megawatt (MW) gas-fired power plant in Ilijan, owned by San Miguel Global Power Holdings Corp. (SMGP).
Meralco's first and largest LNG project is an important development for the Philippines in its quest for a greener and more efficient energy future. This $3.3-billion deal aims to transform the nation's energy landscape and solidify Meralco's leadership in advancing sustainable power solutions, as regulatory bodies constantly monitor its adherence to industry regulations.
