Vena Energy secures funding for 300-MW Ilocos solar project

SINGAPORE-BASED Vena Energy has obtained full financing from a group of international banks for its 300-megawatt (MW) solar project in Ilocos Norte, marking the first US dollar-denominated project financing in the Philippines’ renewable energy sector funded solely by foreign lenders.

The company announced last week that the Opus Solar Energy project in Paoay has reached financial close, though it did not disclose the funding amount.

The participating banks were BNP Paribas (Singapore), Crédit Agricole Corporate and Investment Bank, (Singapore), DBS Bank Ltd., Intesa Sanpaolo S.P.A., (Hong Kong), MUFG Bank Ltd. (Singapore), Standard Chartered Bank (Singapore) Ltd. and Sumitomo Mitsui Banking Corp.

“As the first US dollar-denominated project financing in the Philippines’ renewable energy sector funded entirely by international banks, this transaction underscores Vena Group’s leadership to mobilize cross-border capital at scale to accelerate the country’s clean energy transition,” Vena Group Chief Investment Officer Simone Grasso said in a statement.

Vena said the transaction sets a model for future renewable energy financing in the country and strengthens its position as a regional player in large-scale green projects.

The ground-mounted solar facility is expected to supply power to about 445,000 households. A filing with the Department of Environment and Natural Resources places the project cost at roughly P15 billion.

The project is part of the government’s 2023 Green Energy Auction Program, which targets delivery by 2026.

Vena Energy, based in Singapore, runs six renewable power plants in the Philippines with a combined capacity of 330.8 MW across Negros Occidental, Rizal, Leyte, Ilocos Norte and Bukidnon. — Sheldeen Joy Talavera