BDO Unibank's sustainable financing surpasses P1 trillion mark

Laying the foundation for a greener nation. Workers install solar panels at the MTerra Solar site for a more reliable and resilient energy infrastructure. Image Courtesy: BDO Unibank

BDO Unibank Inc. (BDO) continues to champion sustainable finance by supporting initiatives that promote inclusive growth, environmental stewardship, and long-term economic resilience. Since launching its Sustainable Finance Program in 2010, BDO has funded P1.04 trillion in sustainable projects across energy, infrastructure, water, transportation, and community development sectors.

BDO has worked closely with clients across multiple sectors. The Bank served as the anchor lender of the syndicated term loan facility for San Miguel Global Power Holdings Corporation’s (SMGP) Battery Energy Storage System (BESS), one of the largest integrated battery energy storage systems globally.

SMGP's 32 BESS facilities nationwide provide a combined capacity of 1,000 MWh, enhancing power quality and stability by addressing the intermittency of renewable energy sources. This supports the development of other renewable sources, aligning with the Philippines’ goal of generating 35% of its energy from renewable sources by 2030.

BDO also provided project financing for the development of the largest solar plant in Batangas, Citicore Renewable Energy Corporation’s (CREC) Citicore Solar Batangas 1 project. Comprised of two solar plants located in Tuy, Batangas, the project will have a peak generating capacity of 197 MW once operational and will cover approximately 158,000 (Based on a typical Philippine household consumption of 200kWh per month based on CREC estimates) households per year. CREC also pioneered the AgroSolar initiative in the Philippines that enables solar energy generation to co-exist with agriculture.

Additionally, BDO recently financed MTerra Solar, the world’s largest integrated solar and battery storage facility. Spanning over 3,500 hectares across Nueva Ecija and Bulacan, this 3,500 MWp solar farm with 4,500 MWh battery storage system is expected to provide clean energy to approximately 2.4 million households.

As the biggest lender to the P150 billion project finance facility, BDO 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. BDO also functions as MTerra Solar’s main account bank, reinforcing its expertise in structuring large-scale sustainable energy projects.

“Championing sustainable infrastructure is more than financing. It is about laying the groundwork for a sustainable and climate-resilient future. At BDO, we take pride in partnering with companies that drive innovation, uplift communities and fuel national progress,” said Charles M. Rodriguez, BDO Executive Vice President and Head of the Institutional Banking Group.

The Bank also continues to support green buildings, solar rooftop installations, and resource-efficient infrastructure, helping clients reduce energy use and emissions while boosting operational performance.

At the Department of Energy’s Philippine Conference on Energy Efficiency and Conservation, Michelle Patricia Cillan, First Vice President and Head of the ESG Desk for Institutional Banking Group of BDO, said “Energy efficiency is clearly a pathway to a greener portfolio.  While there are challenges to be hurdled, having the right information and understanding our clients’ business models can unlock opportunities for financing.”

BDO’s sustainable financing activities are anchored on its Board-approved Sustainable Finance Framework, currently the most comprehensive framework in the country for Green, Blue, Social and Gender financing, with 29 eligible categories certified by Morningstar Sustainalytics.