LANDBANK has committed ₱60 billion to a ₱100-billion syndicated loan for PSALM to support fiscal sustainability and reform efforts in the Philippine energy sector.

Information on the Target

The target of this deal is the Power Sector Assets and Liabilities Management Corporation (PSALM), a government-owned corporation responsible for managing the finances and assets of the National Power Corporation (NPC). PSALM plays a critical role in the Philippine energy sector by overseeing the privatization and optimal liquidation of power sector assets while ensuring efficient management of financial obligations. LANDBANK has positioned itself as a significant partner of PSALM since its inception, consistently providing essential financing that supports its operations.

Industry Overview in the Philippines

The Philippine energy sector has undergone significant reforms since the enactment of the Electric Power Industry Reform Act (EPIRA) in 2001, aimed at enhancing competition and improving electricity service delivery across the country. The industry remains vital to national development as it underpins various sectors, including industry, services, and agriculture. Despite these reforms, challenges persist, including fluctuating energy demand, the need for infrastructure investments, and the transition towards renewable energy sources.

As the country strives for energy sustainability, government and financial institutions play a pivotal role in ensuring that adequate funding is available to support the modernization and expansion of power generation and d