Actis closes $600 million Terra Solar investment

This is in line with a subscription agreement signed last year.

Actis has announced the closing of its $600m stake acquisition in Terra Solar Philippines, Inc. (MTerra Solar), with MGEN Renewable Energy, Inc. (MGreen), through its subsidiary SP New Energy Corporation (SPNEC).

In a statement, Actis said the signing of the subscription agreement marks the completion of its share subscription agreement with MTerra Solar signed in September 2024. This also grants the investment firm the right to an equity stake in the solar company subject to certain conditions, for a total consideration of approximately $600m.

MTerra Solar, one of the largest mid-merit renewable generation capacities in the Philippines, has an 850-megawatt contracted capacity over 20 years.

Actis, along with Meralco PowerGen Corporation and MGreen, will develop and expand MTerra Solar. It will have 3,500 megawatt-peak of installed solar capacity and 4,500 megawatt-hours of installed battery energy storage capacity once fully commissioned.

UBS AG Singapore Branch acted as financial advisor to SPNEC. Latham & Watkins and Picazo Law acted as international and domestic legal counsel to MGreen and SPNEC. Morgan Stanley acted as financial advisor whilst Milbank and SyCip Law acted as international and domestic legal counsel, respectively, to Actis.