BDO unwraps P1-T green war chest

BDO Unibank Inc. is solidifying its position as the country’s leading financier of sustainable development, having poured over P1.04 trillion into projects that align with the Philippines’ inclusive and climate-resilient growth ambitions.

As the country grapples with energy security, climate change, and infrastructure bottlenecks, BDO’s Sustainable Finance Program, launched in 2010, has expanded to encompass a wide range of sectors, including clean energy, transportation, water systems, and community infrastructure.

Among its landmark deals is its anchor lending role in San Miguel Global Power Holdings Corporation’s (SMGP) Battery Energy Storage System (BESS), one of the largest integrated BESS networks globally. The 32-site project provides a total of 1,000 MWh in storage capacity, supporting grid stability while enabling greater integration of intermittent renewable sources. The initiative supports the country’s 2030 target of sourcing 35 percent of its energy from renewable sources.

The bank has also extended project financing to Citicore Renewable Energy Corporation’s (CREC) Citicore Solar Batangas 1 project, set to become the largest solar facility in Batangas.

Once fully operational, the 197-megawatt (MW) peak capacity plant will supply energy to an estimated 158,000 households annually.

Farms booster

CREC’s AgroSolar concept, which combines solar energy production with agriculture, is another innovation that BDO supports in its pursuit of dual-sector sustainability.

In what is being called the most ambitious clean energy undertaking in the country to date, BDO recently led the financing of MTerra Solar — the world’s most extensive integrated solar and battery storage development. Located across Nueva Ecija and Bulacan, the P150-billion facility spans 3,500 hectares and will deliver 3,500 MWp of solar capacity paired with 4,500 MWh of battery storage.

BDO serves in multiple roles in this project, including as the central account bank, facility agent, and security trustee. Meanwhile, BDO Capital is the sole lead arranger and bookrunner.

“Championing sustainable infrastructure is more than financing. It is about laying the groundwork for a sustainable and climate-resilient future,” Charles Rodriguez, executive vice president and head of the Institutional Banking Group at BDO, said.

“At BDO, we take pride in partnering with companies that drive innovation, uplift communities, and fuel national progress.”

Beyond utility-scale energy investments, the bank continues to support the development of green buildings, rooftop solar installations, and resource-efficient infrastructure. These projects help enterprises reduce emissions and operational costs while contributing to the country’s climate commitments.

Speaking at the Department of Energy’s Philippine Conference on Energy Efficiency and Conservation, Michelle Patricia Cillan, BDO first vice president and head of the ESG Desk for Institutional Banking Group, said, “Energy efficiency is 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.”

Its Sustainable Finance Framework guides BDO’s initiatives, currently the most expansive in the Philippines. Certified by Morningstar Sustainalytics, the framework encompasses 29 eligible categories, including Green, Blue, Social, and Gender financing, providing BDO with the structural tools to align financial flows with ESG priorities.