SB Capital funding $6B worth of renewable energy projects

Security Bank Capital Investment Corp. (SB Capital) will finance at least $6 billion worth of renewable energy projects this year. This, as the aggressively growing sector is proving to be an attractive venture among Philippine firms.

Virgilio Chua, president and CEO of SB Capital, on Wednesday told reporters they were set to end 2025 with eight renewable energy projects funded. These account for an aggregate power generating capacity of 6,000 megawatts (MW).

The projects in the pipeline are a combination of solar, wind and hydro facilities, according to Chua. They cost at least $1 million per MW of capacity.

“We continue to be very bullish about [the renewable energy space] … We’re practically meeting almost every week with developers wanting to see if we can finance their projects,” Chua said in a press conference.

Year-to-date, SB Capital has completed four project finance deals related to renewable energy development. These projects can generate power at a total of about 4,000 MW.

This includes the P150-billion deal with Manuel Pangilinan-led SP New Energy Corp. for the development of the 3.5-gigawatt MTerra Solar. This project is poised to be the world’s largest solar power park.

The syndicated loan included BDO Unibank Inc., Bank of the Philippine Islands, Philippine National Bank, China Banking Corp. and Metropolitan Bank and Trust Co.

Chua also said that they were expecting 50 percent of their revenues to come from project financing deals, mostly on the renewable energy project space.

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He said that the sector was drawing much attention from foreign investors, especially after the Department of Energy (DOE) allowed 100 percent foreign ownership of clean energy projects in the Philippines.

The DOE’s Green Energy Auction program was also an added boost, considering that the agency had already conducted four rounds since the program was launched in 2022.

“That’s really where the market is at the moment,” Chua said.

For its part, SB Capital closed around P362 billion in private and project finance deals. These covered renewable energy, water and digital infrastructure projects from 2022 to 2024.