Baseload, Geothermal, Utility Scale

Asian Development Bank Issues $225M Bond for Tiwi-MakBan Geothermal Project

The Asian Development Bank (ADB) said on Feb. 29 that it will provide a $225 million bond to the Philippine firm AboitizPower Corp. for the Tiwi-MakBan geothermal energy facilities.

According to ADB, the bond is in addition to a direct ADB loan of $37.7 million.

“The successful use of credit enhancement for Tiwi-MakBan reflects our evolving strategy to make creative use of ADB’s expanding balance sheet to support infrastructure investment in Asia and the Pacific,” Todd Freeland, Director General of ADB’s Private Sector Operations Department, said in a statement. “Credit-enhanced project bonds offer an attractive alternative to bank financing, and by mobilizing cost-effective, long-term capital can help close the region’s infrastructure gap.”

According to the National Geothermal Association of the Philippines, the Tiwi-MakBan complexes have a combined installed generating capacity of 700 MW. ADB said that, since AboitizPower acquired the Tiwi-MakBan complexes in 2009, AboitizPower has invested in the rehabilitation of the facilities to improve performance and extend their operating life. With the refurbishment complete, the project is now undertaking its first debt financing, ADB said.

Lead image: Tiwi Geothermal complex. Credit: ADB.