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Tuesday, March 18, 2025
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Tuesday, March 18, 2025

MERALCO POWERGEN (MGEN) UNIT MGREEN CLOSES  TERRA SOLAR US$600 MILLION INVESTMENT BY ACTIS 

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METRO MANILA, PHILIPPINES, 17 MARCH 2025 – MGEN Renewable Energy,  Inc. (MGreen), through its subsidiary SP New Energy Corporation (SPNEC),  announces the closing of the acquisition by Actis Rubyred (Singapore) Pte. Ltd.  through its wholly-owned subsidiary Actis Rubyred (Philippines) Holdings, Inc.  (Actis) of a stake in Terra Solar Philippines, Inc. (“MTerra Solar”). 

The signing of the subscription agreement marks the completion of the Share  Subscription Agreement between Terra Solar Philippines, Inc. and Actis which was  signed last September 6, 2024 granting Actis the right to a 40% equity stake in  MTerra Solar, subject to certain conditions, for a total consideration of  approximately US$600 Million.  

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MGreen is the renewable energy arm of Meralco PowerGen Corporation (MGEN),  which is a wholly owned subsidiary of Manila Electric Company (Meralco). This  strategic investment will support MGEN’s mission to accelerate the clean energy  transition in the Philippines. 

“This landmark investment marks a major step forward in our mission to accelerate  the clean energy transition in the Philippines. With MTerra Solar, we are reinforcing  our commitment to delivering reliable, sustainable, and cost-effective energy  solutions. 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,” said Emmanuel V. Rubio, President and CEO of MGEN and  SPNEC.  

Actis, a leading global investor in sustainable infrastructure with deep project  execution and contract management expertise, will work together with MGEN and  MGreen, to jointly develop and expand MTerra Solar, which will have 3,500MWp  of installed PV capacity and 4,500MWh of installed BESS capacity once fully  commissioned. 

Rahul Agrawal, Partner, Head of Energy for Southeast Asia at Actis, said: “MTerra Solar is a marker of what’s possible in terms of scale and ambition with  renewable energy in Southeast Asia. It represents the largest such project in this  fast-growing region, and we’re delighted to be partnering with MGEN and MGreen  to deliver this critical project and accelerate the Philippines’ energy transition.” 

MTerra Solar represents one of the largest mid merit renewable generation  capacities in the Philippines, with 850MW contracted capacity over 20 years. This  investment is the largest foreign direct investment in a single project for greenfield  infrastructure in the Philippines, a clear testament of MTerra Solar’s key positioning  in the country’s renewable energy (RE) sector. With the Philippines’ growing energy demand and strong RE potential, this project aims to significantly contribute  to the country’s Renewable Portfolio Standards program.  

Significant development progress has been made with MTerra Solar.  Groundbreaking was led by President Ferdinand R. Marcos Jr. in November 2024,  and Phase 1 Notice-to-Proceed has already been issued to contractors. Continued  progress has been made on all fronts towards achieving the scheduled COD by  the first quarter of 2026: (i) Phase 1 land has been fully secured; (ii) EPC contracts  have been awarded to leading engineering and construction companies; (iii)  construction of transmission line is on track for completion towards end of 2025;  and (iv) PHP 150 billion of committed Project Financing has been signed with a  syndicate of the largest Philippine banks.  

MTerra Solar forms a significant part of Meralco’s commitment to support the  government’s goal to have 35% of the Philippines’ energy being sourced from  renewable energy by 2030. MTerra Solar is also part of several pipeline projects  of MGEN to have more than 1,500 MW of attributable RE capacity by 2030.  

With this partnership, Actis joins the Meralco group in a shared goal to drive the  growth of renewable energy and enhance the energy security of the Philippines.  The investment is also expected to play a key role in the country’s long-term  decarbonization efforts, supporting the Philippines’ transition to a more sustainable  and resilient energy system. 

“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% of  the country’s energy to come from renewable energy. Our collaboration with Actis  is a pathway to the Philippine’s goal of having clean energy for the Filipino people,”  Meralco Chairman and CEO Manuel. V. Pangilinan said.  

UBS AG Singapore Branch acted as financial advisor to SPNEC. Latham & Watkins and Picazo Law acted as international and domestic legal counsel to MGreen and SPNEC. Morgan Stanley acted as financial advisor while Milbank and  SyCip Law acted as international and domestic legal counsel, respectively, to Actis. 

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