Manila: State-owned Land Bank of the Philippines (LandBank) will extend PHP60 billion to the Power Sector Assets and Liabilities Management Corporation (PSALM) to support the national government’s energy sector reform efforts. In a statement Wednesday, LandBank said the PHP60 billion is part of a PHP100 billion Syndicated Term Loan Facility that would be provided to PSALM.

According to Philippines News Agency, the remaining PHP40 billion will be shouldered by the Development Bank of the Philippines (DBP). LandBank and DBP acted as the Joint Lead Arrangers for the syndicated deal, with LandBank – Trust Banking Group as the facility and paying Agent, and the Office of the Government Corporate Counsel (OGCC) as the transaction counsel.

The proceeds of the facility will be used to augment PSALM’s working capital requirements, refinance existing liabilities, and settle domestic contractual obligations. The loan will support PSALM fulfill its mandate under the Electric Power Industry Reform Act, which includes the management, privatization, and optimal liquidation of the remaining assets and financial obligations of the National Power Corporation.

The loan agreement was signed by PSALM President and Chief Executive Officer (CEO) Dennis Edward Dela Serna, LandBank President and CEO Lynette Ortiz, and DBP President and CEO Michael de Jesus on July 17, 2025. “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.