Philippines: Tiwi-MakBan Geothermal Energy Plant Gets Innovative Funding

Philippines gets novel lending support for renewables (UPI)

Asian Development Bank offers bond initiative to back geothermal energy project.

The Asian Development Bank (ADB) has announced it issued its first-ever bond initiative to help back geothermal energy in the emerging Philippines market.

The ADB helped establish a local-currency bond valued at $225 million, on top of a direct loan of $37.7 million, to help support regional development of geothermal energy facilities.

ADB will provide credit-enhancement to the Philippine firm AP Renewables, Inc. (APRI), a subsidiary of AboitizPower Corporation (AboitizPower), for the Tiwi-MakBan geothermal energy facilities. The PHP10.7 billion ($225 million equivalent) local currency bond comes in addition to a direct ADB loan of PHP1.8 billion ($37.7 million equivalent). ADB’s credit enhancement is in the form of a guarantee of 75% of principal and interest on the bond.

The bank said bonds would offer an attractive alternative to bank financing for long-term renewable energy investment in the country.

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