The Land Bank of the Philippines (LandBank) will provide PHP60 billion to the Power Sector Assets and Liabilities Management Corporation (PSALM) to support the government’s energy sector reform initiatives.
LandBank said Wednesday that the loan is part of a PHP100-billion Syndicated Term Loan Facility, with the remaining PHP40 billion coming from the Development Bank of the Philippines (DBP). Both banks served as Joint Lead Arrangers, with LandBank’s Trust Banking Group acting as the facility and paying agent, while the Office of the Government Corporate Counsel (OGCC) served as transaction counsel.
The loan proceeds will be used to augment PSALM’s working capital, refinance existing debts, and settle domestic contractual obligations. It will also support PSALM’s mandate under the Electric Power Industry Reform Act (EPIRA), which covers managing, privatizing, and liquidating the remaining assets and financial obligations of the National Power Corporation.
The loan agreement was signed on July 17, 2025, by PSALM President and CEO Dennis Edward Dela Serna, LandBank President and CEO Lynette Ortiz, and DBP President and CEO Michael de Jesus.
“We are honored to be part of this important milestone, alongside our partners in government and development finance. This transaction reflects our collective resolve to strengthening the Philippine power sector — an industry that is fundamental to shaping the future of our economy and uplifting the lives of every Filipino,” Ortiz said.