Two state-owned banks are fueling the government’s energy reform agenda with a P100 billion syndicated loan to PSALM, aimed at clearing liabilities and powering long-term grid stability.
In a statement over the weekend, the Land Bank of the Philippines (LandBank) is extending a P60 billion loan to the Power Sector Assets and Liabilities Management Corporation (PSALM), an amount that forms part of a P100 billion Syndicated Term Loan Facility, with the remaining P40 billion to be provided by fellow government financial institution, the Development Bank of the Philippines (DBP).
LandBank and DBP served as joint lead arrangers for the syndicated facility, with LandBank – Trust Banking Group acting as the facility and paying agent. The Office of the Government Corporate Counsel served as transaction counsel.
Proceeds from the loan will be used to augment PSALM’s working capital, refinance existing liabilities, and settle domestic contractual obligations.
The facility will help PSALM carry out its mandate under the Electric Power Industry Reform Act (EPIRA), which includes 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 PNA
