The Power Sector Assets and Liabilities Management Corporation (PSALM) has secured a PHP 100-billion syndicated term loan facility, with LANDBANK committing PHP 60 billion to serve as the lead financier.

The loan will be used to bolster PSALM’s working capital, refinance outstanding liabilities, and settle domestic contractual obligations. The financing is part of the government’s effort to ensure fiscal stability while advancing reforms in the power sector.

LANDBANK and the Development Bank of the Philippines (DBP) acted as Joint Lead Arrangers, with LANDBANK Trust Banking Group serving as Facility and Paying Agent, and the Office of the Government Corporate Counsel (OGCC) as Transaction Counsel.

The signing ceremony took place on July 17, 2025, led by PSALM President and CEO Dennis Edward A. Dela Serna, LANDBANK President and CEO Lynette V. Ortiz, and DBP President and CEO Michael O. de Jesus. Judge Solomon M. Hermosura, Government Corporate Counsel, also witnessed the event.

“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,” said Ortiz.

The deal reinforces PSALM’s mandate under the Electric Power Industry Reform Act (EPIRA), which directs the agency to manage, privatize, and liquidate the remaining assets and financial obligations of the National Power Corporation.

LANDBANK has been a key financing partner of PSALM since 2008, consistently providing support for its debt management programs. Beyond this, LANDBANK also funds major oil firms, power producers, and distribution utilities, underscoring its role in the country’s energy agenda and broader economic development.

What do you think about LANDBANK and PSALM’s PHP 100-billion loan? Will this help stabilize the energy sector long-term?

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