BDO Unibank, Inc. (BDO) is leading the financing support for the P150 billion MTerra Solar project, touted as the world’s largest integrated solar and battery storage facility.
Spanning over 3,500 hectares across Nueva Ecija and Bulacan provinces in Central Luzon, MTerra Solar aims to address the country’s growing power supply demand.
It is expected to provide clean energy to approximately 2.4 million households.
Meralco, through its power generation arm, Meralco PowerGen Corporation, has been instrumental in driving the MTerra Solar project forward.
By investing in SP New Energy Corporation, the company behind Terra Solar Philippines, Inc. (TSPI), MGEN has ensured the project is equipped with the financial backing, technical capabilities and necessary resources to succeed.
With its integrated battery energy storage system, the project guarantees consistent power delivery even beyond daylight hours, enhancing grid reliability and contributing to a more stable and resilient energy infrastructure.
This project 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.
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.
“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,” said Charles M. Rodriguez, BDO’s Executive Vice President and Head of Institutional Banking Group.