BDO Unibank Inc., the Philippines’ biggest lender, is taking the lead in financing MTerra Solar, the world’s largest integrated solar and battery storage facility, as the country accelerates its shift toward clean energy.
BDO has committed the largest share of the ₱150 billion project finance facility. The bank’s investment is aimed at supporting MTerra Solar’s goal of supplying renewable energy to 2.4 million households and reducing annual carbon emissions by an estimated 4.3 million tons.
The project, developed by Terra Solar Philippines Inc. and supported by SP New Energy Corp. (SPNEC), is backed by Meralco PowerGen Corp. (MGEN), the generation arm of Manila Electric Co.
BDO Capital is the sole mandated lead arranger and bookrunner, while BDO Trust and Investments Group serves as facility agent and security trustee.
BDO is also the main account bank for the project, which spans 3,500 hectares across Nueva Ecija and Bulacan provinces and includes a 13-kilometer 500kV transmission line to connect to the national grid.
“As the world’s largest solar project and a first for the Philippines, it was essential to work with BDO,” said MGEN president and CEO Emmanuel Rubio. “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.”
The MTerra Solar facility features integrated battery storage to ensure stable power delivery beyond daylight hours, strengthening grid reliability.
The project aligns with the Department of Energy’s renewable energy targets of 35% by 2030 and 50% by 2040.
MGEN Renewable Energy Inc. president and CEO Dennis Jordan added that the participation of BDO and other local banks underscores the potential of Philippine financing to support infrastructure at a global scale.
Now at 35% completion, the project is expected to start commercial operations in the first quarter of 2026. It will be delivered in two phases under a power supply agreement with Meralco—600 MWac in the first phase and 250 MWac in the second.
BDO Capital president Eduardo Francisco said the bank’s involvement demonstrates its role in driving climate-focused investments:
“Supporting transformative projects like MTerra Solar underscores BDO’s commitment to financing initiatives that drive long-term economic and environmental progress,” said Charles Rodriguez, BDO executive vice president and head of Institutional Banking.
