BDO Unibank Inc. (BDO) is spearheading the financing for the P150 billion project loan facility for MTerra Solar, a large integrated solar and battery energy storage project under development in Luzon.
BDO is the largest lender in a six-bank syndicate financing the project. Other lenders include Security Bank Corp., China Banking Corp., Philippine National Bank, Metropolitan Bank & Trust Co. and Bank of the Philippine Islands.
The renewable energy initiative, a project of Terra Solar Philippines Inc. (TSPI), aims to supply clean power to an estimated 2.4 million Filipino households. Located across Nueva Ecija and Bulacan, the project will span over 3,500 hectares and include a 500-kV transmission line to connect to the national grid.
TSPI is a subsidiary of Meralco PowerGen Corp., the power generation arm of Manila Electric Co.
“Supporting transformative projects like MTerra Solar underscores BDO’s commitment to financing initiatives that drive long-term economic and environmental progress,” said BDO executive vice president and head of institutional banking group Charles Rodriguez.
“We take pride in empowering businesses that champion innovation and sustainability, ensuring that renewable energy benefits various industries and millions of Filipino households,” said Rodriguez.
The project will be developed in two phases under a power supply agreement with Meralco. Phase 1 will deliver 600 MWac by the first quarter of 2026, followed by Phase 2 with 250 MWac of mid-merit renewable energy.
As of June 2025, the project was 35-percent complete, with site development underway, substation construction progressing, and assembly of solar panel structures starting.
“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,” said MGEN president and chief executive 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. With its track record in project finance loan syndications, capital markets issuances, and advisory transactions, we chose BDO Capital to lead the loan arrangement given the complexities in structuring a project of this magnitude,” said Rubio.
Upon completion, MTerra Solar can reduce carbon emissions by about 4.3 million metric tons annually, the equivalent of at least 3 million gasoline-powered cars off the road.
