NAME: Actis’ $600 million investment in the Terra Solar Project
LAW FIRM: SyCip Salazar Hernandez & Gatmaitan, Latham & Watkins, Milbank
JURISDICTION: Philippines
PRACTICE AREAS: Corporate and M&A
INDUSTRY SECTORS: Energy
Actis’ $600 million investment in the Terra Solar Project is our deal of the month for September.
Global investment firm Actis has partnered with Manila Electric Company (Meralco) and its subsidiary Solar Philippines New Energy Corporation (SPNEC) to invest approximately $600 million in the Terra Solar Project, gaining a 40% stake through the issuance of new shares. This deal marks the largest foreign direct investment for a greenfield infrastructure project in the Philippines.
Once completed, the Terra Solar Project will be the largest integrated renewable energy and storage project in the world. Located on Luzon Island, the project is expected to provide electricity to almost 2.4 million Philippine households and eliminate 3.6 million tonnes of carbon emissions annually. With a total investment of approximately $3.5 billion, the project will also generate over 10,000 new jobs and contribute greatly to the Philippine government’s goal of increasing renewable energy production. After partnering with Meralco, Actis will take on the role of providing economic support for infrastructure, contracting, construction and operation.
SyCip Salazar Hernandez & Gatmaitan acted as local counsel to Actis. The team was led by partners Vicente D Gerochi IV, Aaron Roi B Riturban and Jan Celine C Abaño-Ranada.
Milbank acted as international counsel to Actis. The team includes partners James Grandolfo and Neeraj Budhwani in Hong Kong, Bijan Ganji in Washington and Alexander Rinne in Munich.
Latham & Watkins advised Meralco and its subsidiary SPNEC. The Latham team was led by Singapore corporate partner Sidharth Bhasin and Hong Kong corporate partner Benjamin Carale.
