State-run Land Bank of the Philippines (Landbank) extended a PHP155bn ($2.5bn) bilateral term loan facility to Power Sector Assets and Liabilities Management Corp (PSALM), the bank announced on August 18. Landbank also integrated the state power company into its digital payment platform, Manila Bulletin reports.

The massive credit facility is critical to stabilising the national energy framework. Resolving state energy debts prevents costs from trickling down to end-users and ensures uninterrupted operations across regional power supply lines.

Acting as sole lender and arranger, Landbank stated the credit line grants PSALM greater financial flexibility to settle critical energy liabilities and support the domestic power sector.

Under the digital onboarding, electric cooperatives, power firms, and authorized payors can now clear Universal Charges online using Landbank’s Link.BizPortal gateway.

The digital system will streamline nationwide collections while boosting operational efficiency, transparency, and accountability, Landbank said in an August 18 statement.

The agreement expands a partnership spanning nearly two decades. Landbank previously arranged syndicated term loans of PHP110bn in 2024 and PHP100bn in 2025 for the energy entity.

Landbank President and CEO Lynette V. Ortiz and PSALM President and CEO Dennis Edward A. Dela Serna led the formal signing ceremony on August 4.

National Treasurer Sharon P. Almanza and Department of Finance Undersecretary Maria Angela E. Ignacio witnessed the ceremony alongside executives from both state institutions.

"We, at Landbank, believe modernisation must deliver real results for the public. Through this agreement, we are strengthening the financial and digital foundations that support a reliable and sustainable energy sector," said Landbank President and CEO Lynette V. 

PSALM has received support from the state lender since its inception, and the power firm looks forward to deeper collaboration, said PSALM President and CEO Dennis Edward A. Dela Serna.