BDO leads financing for world’s biggest solar project

MANILA, Philippines — BDO Unibank Inc. is taking a leading role in financing the world’s largest integrated solar and battery storage project, MTerra Solar, which is being built to help meet the Philippines’ rising power demand.

The Sy-led bank said it is the biggest lender to the P150-billion project finance facility, giving the largest commitment among a six-bank syndicate. The project is expected to supply clean energy to 2.4 million households once completed.

The massive renewable energy initiative is being spearheaded by Meralco PowerGen Corp. (MGEN), through its investment in SP New Energy Corp., the parent firm of Terra Solar Philippines Inc. (TSPI).

“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,” MGEN president and CEO Emmanuel Rubio said. “We need financial backing from the nation’s best banks to support a project of this scale,” he said.

BDO Capital is acting as the sole mandated lead arranger and bookrunner for the loan facility, while BDO Trust and Investments Group serves as facility agent and security trustee. BDO is also the main account bank for MTerra Solar.

Located across 3,500 hectares in Nueva Ecija and Bulacan, MTerra Solar will integrate solar generation with battery energy storage to ensure continuous power supply even beyond daylight hours. It will also build a 13-kilometer 500 kV transmission line to connect the plant to the national grid.

The project aims to reduce the country’s carbon emissions by around 4.3 million tons per year, equivalent to removing at least three million gasoline-powered cars from the road.

“The trust and support extended by BDO sends a strong message that local financing can power world-scale renewable energy projects,” TSPI and MGEN Renewable Energy Inc. president and CEO Dennis Jordan said.

Phase 1 of MTerra Solar is set to begin commercial operations by the first quarter of 2026, delivering 600 megawatts of mid-merit renewable energy under its supply deal with Meralco. Phase 2 will add another 250 MW.

The Department of Energy targets renewable energy to account for 35 percent of the country’s energy mix by 2030 and 50 percent by 2040.

As of this month, the project has reached 35 percent completion, with construction of substations and solar panel structures underway.

Beyond clean power, MTerra Solar is also investing in host communities through initiatives such as solar-powered streetlights, skills training for over 600 scholars, and support for small businesses.

“Supporting transformative projects like MTerra Solar underscores BDO’s commitment to financing initiatives that drive long-term economic and environmental progress,”  BDO executive vice president Charles Rodriguez said.