Standard Chartered acts as mandatory lead arranger, lender and hedger Counterparty supporting Wena Group's new Opus solar power project
Standard Chartered is one of seven international lenders that participated in the project financing of Vena Group's Opus Solar Energy Project in Ilocos Norte province, a large utility-scale facility that is expected to add new capacity to the national power grid and expand the Philippines' renewable energy capacity.
Proceeds from the financing will support the development of a 300-MW-peak, ground-mounted solar photovoltaic plant in Paoay, a coastal city in northern Luzon. Once built, the facility will supply electricity to the national grid through a 230 kilovolt connection point.
Standard Chartered Philippines Chief Executive Officer Mike Samson says the structure and broad regional value of the Opus Solar Energy Project make it a strong financing opportunity.
“The Opus Solar Energy Project is the first fully non-recourse renewable energy financing in the Philippines executed solely with international banks. Standard Chartered is proud to be part of this project, which demonstrates our leadership in project financing in the region,” he explains.
The partnership also stands as the first US dollar (USD)-denominated renewable energy project in the Philippines supported by international banks and linked to the Green Energy Auction Program. The revenue model relies on a 20-year renewable energy purchase agreement with the National Transmission Corporation, supported by the Green Energy Auction Allowance Fund.
Standard Chartered played a key role in the deal, acting as the mandatory lead arranger, lender and hedge counterparty. In these roles, the Bank was central to structuring the financing package and guiding Opus Solar Energy on its approach to managing the financial risks associated with the long operational life of the project.
The group running this landmark project, Singapore-based Vena Group, is one of the largest independent renewable energy producers in the Asia-Pacific region. The company has a BBB-minus rating from S&P Global Ratings. This is complemented by a proven track record in developing and delivering large-scale energy projects across multiple markets.
Unleashing the potential of Ilocos Norte as a renewable energy hub
Vena Group selected Ilocos Norte after evaluating solar resources and infrastructure. The province was seen as an ideal choice as it has built a reputation as a renewable energy corridor in Northern Luzon with wind and solar facilities connected to major transmission lines.
The solar plant is part of the Philippine government's Department of Energy's Green Energy Auction Program 2, which aims to add 3.4 gigawatts of renewable capacity by 2026. Once fully operational, the Ilocos Norte facility is projected to generate enough electricity to meet the annual consumption of approximately 445,000 households. Vena also estimates that the project could avoid approximately 349,000 metric tons of greenhouse gas emissions each year.
Beyond energy production, Vena Group notes that renewable energy investments can contribute to both energy supply and economic activity in host communities.
“The Philippines remains one of Vena Group’s most dynamic growth markets with vast potential for renewable growth.
We are committed to expanding our renewable energy portfolio through projects that deliver tangible value to local communities and the economy. Our full-cycle approach – from engineering to operations – creates jobs, builds infrastructure, and advances national goals for sustainable development and Energy independence,” says Simone Grasso, CIO of Vena Group and global head of Vena Nexus.
Establishing a blueprint for cross-border financing
Standard Chartered executed the transaction with Vena Group through coordination between its Singapore team and the Philippine office, allowing a portion of the loan to be booked onshore. The performance demonstrates how the Bank's integrated network played a role in enabling efficient cross-border capital deployment.
“We are committed to expanding our footprint in the rapidly growing ASEAN renewable energy sector, particularly through non-recourse project financing,” Mr Samson said.
Both Standard Chartered and Vena Group hope the Opus project will serve as an example for renewable energy deals in the Philippines and across the region.
“Global pressure to reduce carbon emissions and tackle climate change is driving countries in the Asia-Pacific region to adopt more ambitious renewable energy targets,” says Mr Samson. “With governments setting ambitious energy targets, we are seeing increasing demand from private and public buyers alike. We expect many other foreign developers to replicate the success of the Opus project and explore the diversification of financing sources beyond local financing.”
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