Prime Infrastructure Capital Inc. has secured two financing agreements totaling P273.47 billion to fund the construction of a 2-gigawatt pumped storage portfolio, marking the largest deal of its kind in the country.
The company, led by businessman Enrique Razon Jr., signed a P214.87-billion project financing agreement on March 12 with a syndicate of eight local banks. The group includes Bank of the Philippine Islands, BDO Unibank Inc., China Banking Corp., Land Bank of the Philippines, Metropolitan Bank & Trust Co., Philippine National Bank, Security Bank Corp. and Union Bank of the Philippines.
Classified as a green loan, the financing was assisted by MUFG Bank Ltd. and supports Prime Infra’s focus on sustainability assets in energy, clean water and waste management.
The company also entered into a P58.6-billion dual-currency equity standby letter of credit facility with foreign lenders MUFG Bank, Mizuho Bank Ltd. and Sumitomo Mitsui Banking Corp. to complement the local financing.
“This historic financing reflects the confidence of local and international banks in Prime Infra’s capability to deliver large-scale, critical infrastructure,” Prime Infra president and chief executive Guillaume Lucci said.
“Our pumped storage hydropower projects demand significant capital, and we are fortunate to have the trust of our banking partners,” he said.
The capital will fund the 1,400-megawatt Pakil Pumped Storage Hydropower Plant in Laguna and the 600-megawatt Wawa Pumped Storage Hydropower Plant in Rizal. Both are scheduled for delivery by 2030 and have been designated as energy projects of national significance under the Department of Energy’s third Green Energy Auction Program.
Pumped storage technology functions by moving water to an upper reservoir during off-peak hours and releasing it to generate electricity during high demand, which stabilizes the power grid and manages intermittent sources like wind and solar.
Lucci said the agreements will accelerate investments and strengthen energy security, describing it as the foundation of the Philippines’ sustained economic growth. The projects are aligned with the government goal to increase the renewable energy share in the national generation mix to 35 percent by 2030 and 50 percent by 2040.
The signing ceremonies held at Solaire Parañaque were attended by senior banking and company officials, including BDO Capital president Eduardo Francisco, BPI Capital president Lester Ong, Metrobank executive vice president Mylene Caparas and Prime Infra chief financial officer Sandy Alipio.
