Powering the green energy push

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January 18, 2026 | 12:00am

MANILA, Philippines — Financing makes sustainable energy possible. Thus credit goes to Mitsubishi UFJ Financial Group (MUFG) Manila Branch for taking a major step in advancing sustainable financing in the Philippines, completing its first sustainable trade asset finance transactions with San Miguel Global Power (SMGP) and SN Aboitiz Power Magat Inc.

The pilot deals, structured under MUFG’s sustainable trade asset finance framework, align with international sustainability principles and the bank’s own Net Zero Commitment by 2050, MUFG said in a statement.

The twin transactions, launched shortly after MUFG introduced its sustainable trade solutions in the Philippines in November 2025, underscore the bank’s commitment to supporting the nation’s transition to a low-carbon future.

For SMGP, the power arm of the diversified San Miguel Corp., MUFG issued a standby letter of credit (SBLC) in favor of the Department of Energy to secure performance obligations under the Green Energy Auction. The SBLCs provide a layer of financial assurance, helping ensure that committed energy projects proceed as planned. These facilities support the delivery of a combined IGW of capacity from SMGP’s floating solar and hydropower commitments, reinforcing San Miguel’s leadership in renewable energy development.

Ramon Ang, chairman and CEO of San Miguel, is grateful for the support.

“As our nation pursues continued growth and development in the coming years and decades, our country’s energy requirements will also expectedly grow. As we invest in and build infrastructure that will serve current and future generations, the need to balance our country’s energy needs, with the need to protect our environment, becomes even more critical. We are grateful to MUFG for supporting SMGP’s greater push for increased renewable capacities, to benefit Filipinos and economy,” Ang said.

SMGP is actively pursuing Net Zero emissions by 2050. Its strategy spans expanding renewable capacity through solar and hydro projects, improving energy efficiency, embracing circular economy initiatives and investing in cutting-edge technologies like battery energy storage systems.

Similarly, MUFG also issued an SBLC to guarantee the performance obligations of SN Aboitiz Power’s 50MW floating solar power project, also part of the Green Energy Auction programme. This transaction represents SN Aboitiz’s first green trade facility, reinforcing its commitment to renewable energy development and sustainable operations.

“We welcome MUFG’s partnership in supporting sustainable financing solutions that help advance our renewable energy projects in support of the Philippines’ energy transition, ” Joseph Yu, group president and CEO of SN Aboitiz Power, said.

SN Aboitiz is a leading renewable energy player with hydroelectric power plants in northern Luzon.

MUFG, for its part, is proud to partner with the two energy giants.

“We are proud to partner with industry leaders San Miguel Group and SN Aboitiz Power in driving the Philippines’ renewable energy agenda forward. These transactions demonstrate a strong drive for positive climate action and reaffirm MUFG’s commitment to supporting clients’ sustainability goals,” Marie Diana Lynn Singson, deputy country head and head of Global Corporate Banking for MUFG Manila Branch, said.

Belinda Han, head of Transaction Banking Asia Pacific, added that these transactions highlight MUFG’s ability to structure innovative trade finance solutions that embed sustainability principles while providing critical credit support for renewable energy projects.

“We will continue to champion sustainable trade initiatives across the region,” Han said.

Tokyo-based MUFG, which has over 360 years of history, is one of the world’s leading financial institutions. It operates in more than 40 markets with approximately 2,000 locations. MUFG offers commercial and investment banking, trust banking, securities, credit cards, consumer finance, asset management and leasing services.

In Asia-Pacific, MUFG maintains a presence across 18 markets and has formed strategic partnerships with leading regional banks, including Security Bank in the Philippines. Guided by its Medium Term Business Plan through FY2026, MUFG is focused on expanding in key Asian markets, developing an Asian digital strategy, and supporting sustainable growth initiatives.