BDO powers PH by financing the world’s largest solar power plan

Metro Manila, Philippines - In line with its commitment to sustainable development, BDO Unibank, Inc. (BDO) supports the financing of MTerra Solar, the world’s largest integrated solar and battery storage facility. This milestone project, aimed to address the country’s growing power supply demand, is expected to provide clean energy to approximately 2.4 million households.

Meralco, through its power generation arm, Meralco PowerGen Corporation (MGEN), has been instrumental in driving the MTerra Solar project forward. By investing in SP New Energy Corporation (SPNEC), the company behind Terra Solar Philippines, Inc. (TSPI), MGEN has ensured that the project is equipped with the financial backing, technical capabilities and necessary resources to succeed.

BDO, the biggest lender to the ₱150 billion project finance facility, has given the largest commitment among the six-bank syndicate. BDO Trust and Investments Group serves as the Facility Agent and Security Trustee while BDO Capital acts as the Sole Mandated Lead Arranger and Bookrunner for this landmark transaction. Additionally, BDO also functions as MTerra Solar’s main account bank, reinforcing its expertise in structuring large-scale sustainable energy projects.

“As the world’s largest solar project and a first in the Philippines, it was essential to partner with the country’s largest bank, BDO. While MTerra Solar has the operational capability to drive the project, we need financial backing from the nation’s best banks, including BDO, to support a project of this scale. With its track record in project finance loan syndications, capital markets issuances, and advisory transactions, we chose BDO Capital to lead the loan arrangement given the complexities in structuring a project of this magnitude,” said President & CEO of Meralco PowerGen Corporation (MGEN), Mr. Emmanuel V. Rubio.

“We’re incredibly grateful to all our banking partners for believing in the vision behind MTerra Solar. We especially thank BDO for the role they’ve played in bringing this milestone to life. The trust and support they have extended to us sends a strong message that local financing can drive world-scale renewable energy project,” added Terra Solar Philippines Inc. and MGEN Renewable Energy Inc. President and CEO Dennis B. Jordan.

“Our partnership with Meralco PowerGen showcases our shared commitment in advancing sustainable energy solutions. We are honored to have played a key role in structuring this historic deal, strengthening the country’s energy security as we transition to a greener, more resilient future,” stated Eduardo V. Francisco, President of BDO Capital.

Powering the future with MTerra Solar

Upon completion, MTerra Solar can reduce carbon emissions by approximately 4.3 million tons annually, the equivalent of at least 3 million gasoline powered cars off the road. Spanning over 3,500 hectares across Nueva Ecija and Bulacan, this project will also include the development of a 13-kilometer, 500 kV transmission line to connect the facility to the national grid.

With its integrated battery energy storage system (BESS), the project guarantees consistent power delivery even beyond daylight hours, enhancing grid reliability and contributing to a more stable and resilient energy infrastructure. This aligns with the Department of Energy’s renewable energy targets of 35% by 2030, and 50% by 2040, in line with the country’s Nationally Determined Contributions to reduce its carbon footprint.

MTerra Solar will be completed in two phases. Under its Power Supply Agreement (PSA) with Meralco, phase 1 will deliver 600 MWac, followed by phase 2 with 250 MWac of mid-merit renewable energy. This project is set to commence commercial operations in Q1 2026 for Phase 1. To date, the project has reached 35% overall progress marked by the ongoing construction of the substation, continued site development, and the start of assembling structures for the solar panels.

Empowering local communities

Beyond its environmental impact, MTerra Solar fosters socio-economic growth in its host communities. These initiatives include brighTER (solar street lights for barangays), TERRAnsform (trainings for 630 scholars with job placements under the EPC or Engineering, Procurement and Construction contractors) and carTER (community marketplaces to boost local businesses).

“Supporting transformative projects like MTerra Solar underscores BDO’s commitment to financing initiatives that drive long-term economic and environmental progress. We take pride in empowering businesses that champion innovation and sustainability, ensuring that renewable energy benefits various industries and millions of Filipino households,” shared Charles M. Rodriguez, BDO’s Executive Vice President and Head of Institutional Banking Group.