MUFG backs San Miguel, Aboitiz renewable energy

MUFG Bank Ltd., Japan’s largest bank, has completed its first sustainable trade asset finance transactions in the Philippines, providing financial guarantees for more than one gigawatt of renewable capacity.

These were pursued under the bank’s sustainable trade asset finance framework.

Its first deals covered the projects of energy firms San Miguel Global Power and SN Aboitiz Power Magat Inc. These are part of the government’s Green Energy Auction Program, an initiative meant to fast-track the rollout of renewable energy projects across the country.

MUFG issued a standby letter of credit to the Department of Energy, providing “a layer of financial assurance, helping ensure that committed energy projects proceed as planned.”

For San Miguel, the guarantees cover delivery of a combined one gigawatt of floating solar and hydropower capacity.

The project of SN Aboitiz Power, meanwhile, involves a 50-megawatt floating solar facility.

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“We are proud to partner with industry leaders San Miguel Group and SN Aboitiz Power in driving the Philippines’ renewable energy agenda forward,” said Marie Diana Lynn Singson, deputy country head and head of global corporate banking at MUFG Manila Branch.

“These transactions have further demonstrated their strong drive for positive climate action, while also reaffirming MUFG’s efforts in partnering with clients to pursue their sustainability agendas,” she added.