BDO Fuels PH Clean Energy Push With World’s Largest Solar Project
- July 3, 2025
BDO Unibank is taking a central role in financing MTerra Solar, a landmark renewable energy (RE) project designed to supply clean electricity to around 2.4 million homes in the Philippines. With a total project cost of ₱150 billion, it is set to become the world’s largest solar and battery storage facility.
As the lead lender in a six-bank syndicate, BDO has committed the largest share of funding, reinforcing its push for sustainable development and long-term energy security. The project aims to help bridge the country’s widening power gap through large-scale clean energy generation and storage.
Meralco, through its power generation subsidiary MGEN, is playing a pivotal role in advancing the MTerra Solar project. Its investment in SP New Energy Corp, the parent firm of Terra Solar Philippines Inc. (TSPI), has provided critical support to bring the project to life. This backing has ensured both sufficient funding and technical expertise.
“The trust and support extended by BDO sends a strong message that local financing can power world-scale renewable energy projects,” stated TSPI and MGEN Renewable Energy Inc. president and CEO Dennis Jordan.
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Positive impact
MTerra Solar will rise on over 3,500 hectares of land in Nueva Ecija and Bulacan, combining solar energy generation with large-scale battery storage to deliver steady power even after sunset. A dedicated 13-kilometer, 500-kilovolt transmission line will link the facility to the national grid, reinforcing its role in stabilizing the country’s energy supply.
Once fully operational, the project is expected to cut carbon emissions by around 4.3 million tons annually, comparable to taking three million gas-powered vehicles off the road.
MTerra Solar is being rolled out in two stages, with the first phase scheduled to go online in early 2026. This initial phase will supply 600 megawatts alternating current (MWac) of mid-merit renewable energy under a power agreement with Meralco, helping meet demand during peak and off-peak hours. A second phase will follow, adding another 250 MWac to the grid.
MTerra Solar has made steady headway, with roughly a third of the work now complete. Crews are actively developing the site, building out substations, and beginning installation of the solar panel framework.
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BDO’s vital role
BDO Capital leads the financing effort as the sole mandated arranger and bookrunner, while BDO Trust handles critical back-end functions as facility agent and security trustee. Acting also as the project’s primary account bank, BDO underscores its depth in managing complex, sustainability-driven infrastructure ventures.
MGEN President and CEO Emmanuel V. Rubio emphasized the importance of partnering with BDO for a project as ambitious as MTerra Solar. “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,” he said.
MTerra Solar’s contribution goes beyond energy, with targeted programs aimed at uplifting its host communities. These efforts include installing solar-powered lighting in villages, providing technical training and employment pathways for hundreds of local scholars, and supporting livelihood opportunities through small-scale enterprise hubs.
“Supporting transformative projects like MTerra Solar underscores BDO’s commitment to financing initiatives that drive long-term economic and environmental progress,” noted Charles M. Rodriguez, BDO’s Executive Vice President and Head of Institutional Banking Group. “We take pride in empowering businesses that champion innovation and sustainability, ensuring that renewable energy benefits various industries and millions of Filipino households.”
Sources:
https://www.sunstar.com.ph/pampanga/bdo-leads-funding-for-worlds-largest-solar-power-plant-in-ph
