The Norwegian Investment Fund for developing countries, Norfund; and Danish development finance institution Impact Fund Denmark are taking a 49% equity stake in a solar project in the Philippines being developed by Vena Energy, a Singapore-headquartered firm.
Once operational, the 500 MWp Ixus Bugallon Solar Power Project is expected to generate enough renewable energy to supply the equivalent annual electricity needs of about 650,000 Philippine households. It is sited in Bugallon, Pangasinan, in northern Luzon, and is next to the existing 550 MWp solar power project also developed by Vena Energy.
The project reached financial close in July, having secured about $310 million in senior debt financing from a syndicate of eight international banks, according to a statement. The financial institutions include BNP Paribas, Crédit Agricole Corporate and Investment Bank, DBS Bank and ING Bank.
The transaction is still subject to the approval of the Philippines Competition Commission.
“Once complete, it will bring Norfund and Impact Fund Denmark alongside Vena Energy, allowing us to retain long-term ownership and operational involvement while rotating capital into our construction programmes and future growth,” Simone Grasso, Vena Group’s chief investment officer said in the statement.
Vena Energy, which was acquired by Global Infrastructure Partners in 2018, develops, owns and operates energy and digital infrastructure assets across Asia Pacific.
The Philippines is targeting to have renewable energy account for more than 50% of its power generation mix by 2050, up from about 25% currently.
As of 2024, energy supply in the Philippines is still mainly generated by fossil fuels, with coal and oil accounting for about 35% and 29% of sources, respectively, according to the International Energy Agency.
