Land Bank of the Philippines (LANDBANK) has extended the majority of the P110-
billion syndicated loan facility to state-owned Power Sector Assets and Liabilities
Management (PSALM) Corporation in support of strengthening and enhancing the
competitiveness of the country’s local power industry.
LANDBANK committed to financing P60 billion of the total facility amount. The
proceeds will be used by PSALM to augment its working capital requirements,
refinance existing liabilities, and settle domestic contractual obligations.
“LANDBANK has a long-standing history of supporting the National Government’s
electrification initiatives, with our loan portfolio encompassing a wide range of
energy-related projects. We will continue to support PSALM in addressing the energy
needs of the country today and in the future,” said LANDBANK President and CEO
Lynette V. Ortiz.
PSALM President and CEO Dennis Edward A. Dela Serna, together with LANDBANK
President and CEO Ortiz and Development Bank of the Philippines (DBP) President
and CEO Michael O. de Jesus, led the ceremonial signing for the Php 110.0 billion
syndicated term loan facility agreement on 30 July 2024 in Quezon City. Assistant
Government Corporate Counsel Judge Basilia Serrano-Angeles witnessed the event.
“We express our heartfelt gratitude to LANDBANK, DBP and OGCC for their
continued support in attaining PSALM’s financial objectives. PSALM’s liability
management program has presented significant challenges as we strive to fulfill our
mandate of liquidating the financial obligations we have assumed. This syndicated
loan provides additional financial support to PSALM, ensuring our continued progress
and assist our asset management and privatization strategies,” said PSALM President
and CEO Dela Serna. “With this loan, we are projecting a net reduction of PHP12.9
billion in our financial obligations for CY 2024,” he added.
LANDBANK and DBP acted as the Joint Lead Arrangers for the syndicated deal, with
the DBP – Trust Banking Group as the Facility and Paying Agent, and the Office of
the Government Corporate Counsel (OGCC) as the Transaction Counsel.
PSALM is a wholly-owned and controlled government entity mandated under the
Electric Power Industry Reform Act (EPIRA) to take over the ownership of all existing
generation assets of the National Power Corporation (NPC), independent power
producer (IPP) contracts, real estate, and all other disposable assets, including the
transmission business of the National Transmission Corporation (TransCo).
The agency also manages the orderly sale and privatization of these assets with the
objective of liquidating all of NPC's financial obligations in an optimal manner.
LANDBANK has been a steadfast partner of PSALM since 2008, providing essential
financing in support of its mandate under the EPIRA law. The Bank also continues to
service the development requirements of the energy sector, including other industry
players such as large oil companies, power producers, and distribution utilities.
ABOUT LANDBANK
LANDBANK is the largest development financial institution in the country promoting
financial inclusion, digital transformation, and sustainable national development.
Present in all 82 provinces in the country, the Bank is committed to provide
accessible and responsive financial solutions to empower Filipinos from countryside
to countrywide.
