Vena Energy Closes $310 Million Facility for 500 MW Philippine Solar Project

KEY TAKEAWAYS

·Vena Energy closed $310 million in senior debt from eight international banks to finance a 500 MW solar project in Pangasinan, the Philippines.
·The facility won a 20-year tariff guarantee under the government's second Green Energy Auction, providing long-term revenue certainty for lenders.
·Once operational, the project will bring Vena's total solar capacity in Pangasinan to 1 GW and supply electricity to approximately 650,000 households annually.

Syndicate Backs Auction Winner

Vena Energy announced the financial close of $310 million in senior debt financing for its Ixus Bugallon Solar Power Project, a 500 megawatt-peak installation in Pangasinan province. The facility was arranged by a consortium of eight international banks: BNP Paribas, Crédit Agricole Corporate and Investment Bank, DBS Bank, ING Bank, Intesa Sanpaolo, MUFG Bank, Standard Chartered Bank, and Sumitomo Mitsui Banking Corp.

The transaction marks one of the larger project finance deals in Southeast Asian renewables this year and reflects continued appetite among global lenders for Philippine clean energy assets backed by government offtake mechanisms.

Simone Grasso, chief investment officer at Vena Energy, said the close demonstrates confidence in the firm's execution track record across the region. The Singapore-based developer has built out more than 3 GW of renewable capacity across Asia-Pacific markets including Japan, Australia, Taiwan, and Indonesia.

Adjacent to Existing Asset

The Ixus Bugallon project sits adjacent to Vena's existing 550 MW Bugallon Solar Power Project, which began commercial operations in 2024. Once the new facility comes online, the combined capacity at the site will reach 1 gigawatt-peak, making it one of the largest contiguous solar installations in the Philippines.

Vena Energy projects the 500 MW plant will supply electricity to approximately 650,000 households annually and avoid more than 570,000 tons of carbon emissions each year. The company estimates water savings of around 830 million liters per year compared with conventional thermal generation.

The project secured a power supply agreement through the Philippine government's second Green Energy Auction, which guarantees a tariff rate for up to 20 years. That long-term revenue visibility was a key factor in attracting senior lenders at competitive pricing, according to people familiar with the deal terms.

Northern Luzon Build-Out

Vena Energy has concentrated much of its Philippine investment in northern Luzon. Earlier this year, Security Bank Corp. provided a PHP 2.7 billion senior debt facility for the firm's 80.6 MW Astro Solar Power Project in Ilocos Norte. That plant joins two other solar facilities already operating in the province, and Vena is developing an additional 300 MW installation there.

The financing strategy mirrors approaches taken by other independent power producers in the region, where project-level debt backed by government auctions has become the dominant structure. The long tenor and fixed tariff reduce revenue risk, allowing developers to achieve higher leverage ratios than merchant power projects.

The Philippine Department of Energy has set a target of 35 GW of renewable energy capacity by 2030, up from roughly 11 GW at the end of 2025. Solar is expected to contribute the largest share of new additions, driven by declining module costs and improved grid access in Luzon.

Investor Appetite Holds

International banks remain active in Philippine renewable finance despite broader concerns about grid congestion and curtailment in certain provinces. The presence of eight arrangers on the Vena transaction signals that lenders view the credit as diversifiable across balance sheets, particularly when backed by sovereign offtake commitments.

Grasso noted that the firm remains focused on mobilizing long-term capital for projects that strengthen energy security and deliver measurable environmental benefits. Vena Energy has raised more than $4 billion in project finance across its Asia-Pacific portfolio since 2020, according to company filings.

The Ixus Bugallon Solar Power Project is expected to reach commercial operation in the second half of 2027, pending final grid interconnection approvals from the National Grid Corporation of the Philippines. Construction has already begun on site preparation and foundation work.

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