ThomasLloyd and IFC to finance renewables projects in the Philippines
ThomasLloyd Group Ltd., a global investment banking and investment management group focused on the renewable energy sector in Asia, and the International Finance Corp. (IFC), a member of the World Bank Group, have agreed to jointly fund renewables projects in the Philippines.
ThomasLloyd and IFC have signed a mandate-letter for the provision of $330-million of senior debt through the Managed Co-Lending Portfolio Programme and other associated IFC funding facilities. This will augment the $87 million of development and construction capital already deployed or committed by the ThomasLloyd Group.
Together funding will be used to construct and operate a portfolio of three solar facilities and three biomass facilities on Negros island in the Philippines. Both parties envisage this transaction as the platform for expanding investment in this sector.
Tony Coveney, Thomas Lloyd executive director and head of project finance, stated:
The Philippines provided a great opportunity for both us and the IFC to bring permanent jobs and sustainable energy supply to the country. We believe that targeted use of capital can work to create local power for local communities.
ThomasLloyd has fully financed a 22 MW PV project being developed on Negros Island by its local development partner, Bronzeoak Philippines Inc. The project, which is the first utility-scale renewable energy project to be built under the Philippine's Feed-In-Tariff (FIT) scheme, is scheduled to be completed in March 2014.
ThomasLloyd was also instrumental in financing the 20MW biomass power facility of San Carlos Biopower Inc., another project vehicle under Bronzeoak Philippines. It is due to complete construction later this year.
Jesse Ang, IFC Resident Representative, stated:
The development of renewable energy sources is a priority program for IFC in the Philippines, which pays the second highest prices for electricity in Asia after Japan, and is highly vulnerable to the effects of climate change. These projects in the island province of Negros support the World Bank Group's global efforts to create more jobs to help reduce poverty particularly in provincial areas where it is more pronounced.