Norfund and Impact Fund Denmark to Buy 49% of Vena Energy's 500 MWp Bugallon Solar Farm in the Philippines

Norfund and Impact Fund Denmark, two Nordic development finance institutions, have agreed to take a combined 49% equity stake in the 500 MWp Ixus Bugallon Solar Power Project in Bugallon, Pangasinan, the Philippines.

The agreement with Singapore-headquartered developer Vena Energy was announced on 16 October 2026, but the deal is not yet done: completion remains conditional on clearance from the Philippine Competition Commission and other customary closing conditions.

A Backdrop of Rising Philippine Power Demand

For Impact Fund Denmark, the investment fits squarely into its assessment of where the Philippines stands today. Lars Bo Bertram, the institution's Chief Executive Officer, pointed to the country's rapid economic growth and rising electricity demand, alongside a grid still heavily reliant on coal.

He argued that significant investment in renewable energy is needed so that growth does not translate into higher emissions, and described the project as an example of how economic growth and the green transition can go hand in hand. Bertram's Danish institution is the country's Development Finance Institution and an impact investor, providing risk capital to companies in developing countries across Africa, Asia, Latin America and Ukraine on commercial terms, in the form of equity, loans and guarantees. Its stated mission is to contribute to green, just and inclusive societies and to support the Sustainable Development Goals.

Norfund's motivation is framed in similar climate terms. Erik Sandersen, Chief Executive Officer of the Norwegian Investment Fund for Developing Countries, said the fund's Climate Investment Fund was set up specifically to avoid emissions in emerging markets, and called the Ixus Bugallon project a great example of what it wants to do more of, noting the project is expected to avoid more than half a million tonnes of CO2 every year.

Norfund is owned and funded by the Norwegian Government, which describes it as its most important tool for strengthening the private sector in developing countries and reducing poverty. Its committed portfolio stands at USD 4.5 billion, spanning Sub-Saharan Africa, South and Southeast Asia, and Latin America. Beyond its core portfolio, Norfund also manages the Norwegian Climate Investment Fund, which invests in renewable energy in developing countries with large emissions from coal and other fossil fuel production.

What the 500 MWp Project Is Expected to Deliver

Once operational, the Ixus Bugallon Solar Power Project is expected to generate enough renewable electricity to cover the equivalent annual needs of roughly 650,000 Philippine households. The same output is forecast to avoid around 570,000 tonnes of CO₂ emissions each year. The project was awarded under the Philippine Department of Energy's second Green Energy Auction Program, known as GEAP 2. In the announcement, it was described as a significant addition to the Philippines' growing renewable energy capacity.

Debt Already Locked In at USD 310 Million

While the equity transaction awaits regulatory approval, the project's financing foundations were laid earlier. Financial close was reached in July 2026, securing approximately USD 310 million in senior debt financing from a syndicate of eight international banks. Vena Energy characterised the debt raise as evidence of strong international lender appetite for quality large-scale renewable energy infrastructure in the Philippines.

Vena Energy's Rationale: Rotating Capital, Keeping Ownership

The structure of the deal matters as much as its size. Simone Grasso, Chief Investment Officer of Vena Group and Global Head of Vena Nexus, said the transaction represents another important milestone in the group's institutional partnership strategy. Once complete, it will bring Norfund and Impact Fund Denmark alongside Vena Energy, allowing the company to retain long-term ownership and operational involvement while rotating capital into its construction programmes and future growth. Grasso said Vena looks forward to progressing the transaction towards completion.

Vena Group, formally Vena Global Group Pte Ltd, is a green solutions provider focused on the energy and digital infrastructure transition across the Asia-Pacific region. It operates through two arms: Vena Energy, its renewable energy business, and Vena Nexus, its digital infrastructure platform. The group develops, owns and operates integrated, sustainable and cost-effective solutions supporting what it describes as the region's transition to a low-carbon and AI-enabled future.

Chief Executive Officer Nitin Apte framed the partnership in terms of scale and capital. He said Vena is pleased to partner with Norfund and Impact Fund Denmark, calling the Philippines an important market for the company and pointing to the project as demonstrating the scale of renewable energy infrastructure that can be delivered when strong development capabilities are combined with long-term institutional capital.

He added that the partners look forward to supporting the Philippines' energy transition and contributing to sustainable economic development as Vena continues to engineer a greener future across Asia-Pacific.

What Happens Next

The transaction now heads to the Philippine Competition Commission for approval, alongside the satisfaction of other customary closing conditions. Neither Vena Energy nor its two prospective partners gave a timeline for completion in the announcement. If cleared, the deal is expected to contribute to the continued growth of renewable energy generation capacity in the Philippines while supporting long-term sustainability objectives.

It would place two Nordic state-backed investors, one Norwegian and one Danish, as minority shareholders in one of the country's larger solar projects, holding a combined 49% stake alongside Vena Energy's continuing majority interest and operational role. The announcement was made in Singapore on 16 October 2026 by the three parties: Vena Energy, Norfund, the Norwegian Investment Fund for Developing Countries, and Impact Fund Denmark.