The Manila Electric Co. (Meralco) has secured a P75 billion credit facility to finance key investments, including the acquisition of energy assets and other corporate initiatives.
The utility company, which disclosed the financing arrangement to the Philippine Stock Exchange (PSE) Tuesday, confirmed that the loan will be drawn within the week from a syndicate of banks, including BDO Unibank Inc., Bank of the Philippine Islands (BPI), and Metropolitan Bank and Trust Co. (Metrobank).
The credit facility, which has a 12-year term, will support Meralco’s ongoing expansion in the power sector. A significant portion of the funds will be allocated toward the acquisition of a controlling stake in Chromite Gas Holdings Inc. This aligns with Meralco’s strategic push to expand its footprint in the energy sector, particularly in the liquefied natural gas (LNG) and power generation markets.
Betty Siy-Yap, Meralco chief finance officer, said the entire P75 billion may be drawn to complete the acquisition of multiple power assets. Last month, the Philippine Competition Commission (PCC) gave the green light for Meralco’s subsidiary, Meralco PowerGen Corp. (MGen), to jointly acquire power facilities and an LNG terminal with partners Therma Natgas Power Inc. (part of the Aboitiz Group) and San Miguel Global Power Holdings Corp.
As part of the transaction, MGen and Therma, via their joint venture Chromite Gas, are acquiring a 67 percent stake in South Premiere Power Corp. (SPPC), Excellent Energy Resources Inc. (EERI), and Ilijan Primeline Industrial Estate Corp. These acquisitions strengthen MGen’s position in the Philippine energy landscape. Additionally, MGen and Therma’s venture has jointly acquired 100 percent of Linseed Field Corp. (LFC), which operates an LNG terminal in Batangas City.
The move is expected to further consolidate Meralco’s control in the energy sector, with MGen and Therma owning a 60/40 stake in Chromite Gas, which in turn holds a dominant share in SPPC, EERI, and Ilijan Primeline. San Miguel Power, a key partner in the deal, will retain a 33 percent interest in these assets as well as a stake in the Batangas LNG terminal.
This credit facility positions Meralco to capitalize on the ongoing energy transition in the Philippines, enhancing its ability to fund high-value projects and pursue future growth opportunities in the evolving power and energy sectors.
