AboitizPower inks P20-B loan deal with Landbank to fund renewable projects

Aboitiz Power Corp. has secured a P20-billion loan from the state-owned Land Bank of the Philippines to fund the growth of its renewable energy portfolio.

In a disclosure to the Philippine Stock Exchange on Thursday, AboitizPower said it entered into a loan agreement with Landbank through its clean energy subsidiary, Aboitiz Renewables Inc. (ARI).

AboitizPower chief renewable energy officer Jimmy Villaroman said the long-term debt financing with the state-run lender will fund ongoing expansion and development projects, including constructing new renewable energy power plants.

"We are very grateful to Landbank for their support and confidence in our company," said Villaroman. 

"This loan will allow us to continue providing clean and sustainable energy to help meet the growing demand in the country," he added. 

Villaroman said that the loan facility aligns with AboitizPower’s 10-year strategy of growing its renewable energy portfolio to 4,600 megawatts (MW)—half of the target 9,200 MW capacity it eyes to generate by 2030 alongside its thermal assets.

AboitizPower intends to spend P190 billion over the next decade to add 3,700 MW of clean energy capacity. 

As of November 2022, the company had over 1,000 MW of disclosed and ongoing renewable projects, which included solar, floating solar, hydro, and onshore wind. —VBL, GMA Integrated News