MGEN Renewable Energy Inc. (MGreen), through subsidiary SP New Energy Corp. (SPNEC), said Actis Rubyred (Singapore) Pte. Ltd., via its subsidiary Actis Rubyred (Philippines) Holdings Inc., completed the acquisition of a 40-percent stake in Terra Solar Philippines Inc. (MTerra Solar) for $600 million.
The completion follows the signing of a share subscription agreement between MTerra Solar and Actis on Sept. 6, 2024, MGreen said.
MGreen is the renewable energy arm of Meralco PowerGen Corp. (MGEN), a wholly owned subsidiary of Manila Electric Co. (Meralco).
“This landmark investment marks a major step forward in our mission to accelerate the clean energy transition in the Philippines,” said Emmanuel Rubio, president and chief executive of MGEN and SPNEC.
“This collaboration with Actis and MGEN strengthens our ability to meet the country’s growing energy demand while advancing a greener and more resilient energy future,” he said.
Actis, a global sustainable infrastructure investor, will work with MGEN and MGreen to develop and expand MTerra Solar, which is planned to have 3,500 megawatts peak (MWp) of installed solar photovoltaic (PV) capacity and 4,500 megawatt-hours (MWh) of battery energy storage system (BESS) capacity once fully commissioned.
“MTerra Solar is a marker of what’s possible in terms of scale and ambition with renewable energy in Southeast Asia,” said Rahul Agrawal, partner and head of energy for Southeast Asia at Actis.
MTerra Solar has 850 MW of contracted capacity over 20 years.
MGreen said the investment is the largest foreign direct investment in a single greenfield infrastructure project in the Philippines.
The project aims to contribute to the Philippines’ Renewable Portfolio Standards program, it said.
MGreen said significant development progress has been made, including a groundbreaking ceremony led by President Ferdinand Marcos Jr. in November 2024 and the issuance of a Phase 1 notice-to-proceed to contractors.
MTerra Solar is part of Meralco’s commitment to support the government’s goal of sourcing 35 percent of the Philippines’ energy from renewable sources by 2030.
MGEN aims to have more than 1,500 MW of attributable renewable energy capacity by 2030.
“Started as an ambitious project, MTerra Solar is moving towards the direction of providing meaningful contribution to the government’s goal to have about 35 percent of the country’s energy to come from renewable energy,” said Manuel Pangilinan, chairman and chief executive of Meralco.
UBS AG Singapore Branch acted as financial advisor to SPNEC. Latham & Watkins and Picazo Law acted as legal counsel to MGreen and SPNEC. Morgan Stanley acted as financial advisor, while Milbank and SyCip Law acted as legal counsel to Actis.