MUFG has completed its first sustainable trade asset finance transactions in the Philippines, providing green trade finance support for renewable energy projects by San Miguel Global Power and SN Aboitiz Power as part of the country’s shift towards low-carbon power generation.
MUFG Bank’s Manila branch has completed its first sustainable trade asset finance transactions in the Philippines, marking a milestone for the Japanese lender’s green finance activities in the domestic market. The transactions were executed with San Miguel Global Power and SN Aboitiz Power Magat Inc., both major players in the country’s energy sector, and form part of MUFG’s wider commitment to achieve net-zero emissions by 2050.
The deals were structured under MUFG’s sustainable trade asset finance framework and follow the bank’s launch of sustainable trade solutions in the Philippines in November last year. According to MUFG, the transactions are intended to support the country’s transition towards lower-carbon energy sources while aligning with international climate commitments.
As part of the arrangements, MUFG issued standby letters of credit in favour of the Department of Energy, providing financial guarantees to ensure that renewable energy projects awarded under the government’s Green Energy Auction programme are delivered as committed. These instruments play a critical role in giving assurance that developers will complete their projects within the agreed timelines and specifications.
The facilities support San Miguel Global Power’s renewable energy portfolio, which covers a combined capacity of around one gigawatt from floating solar and hydropower projects. These investments form part of the group’s broader strategy to move towards net-zero emissions by 2050 through the expansion of renewable energy, battery storage and efficiency initiatives. SN Aboitiz Power, meanwhile, secured backing for its 50-megawatt floating solar project, representing its first transaction under a green trade finance structure and a further step in strengthening its sustainability agenda.
Belinda Han, Asia-Pacific head of transaction banking at MUFG, said the transactions demonstrated the bank’s ability to deliver trade finance solutions that integrate sustainability considerations while continuing to provide essential credit support for renewable energy developments. She added that MUFG intends to continue expanding sustainable trade initiatives across the region to help clients meet their environmental objectives.
Commenting on the developments, San Miguel Corp chairman and chief executive Ramon S. Ang noted that the Philippines’ demand for energy is expected to grow alongside the country’s economic expansion. He said that as infrastructure investment increases to serve both present and future generations, the challenge of balancing energy security with environmental protection becomes increasingly important, and expressed appreciation for MUFG’s support. SN Aboitiz Power Group president and chief executive Joseph Yu also said that working with MUFG would help secure financing for the group’s renewable energy projects and contribute to the country’s ongoing energy transition.
