Mitsubishi UFJ Financial Group Inc. (MUFG) has completed its first sustainable trade asset finance transactions in the Philippines to support renewable energy projects by San Miguel Global Power (SMGP) and SN Aboitiz Power Magat Inc.
The transactions, announced Monday, involve the issuance of standby letters of credit (SBLCs) to the Department of Energy.
These credits secure performance obligations for projects awarded under the government’s Green Energy Auction program, which aims to reduce fossil fuel dependency and diversify the country’s energy mix.
MUFG issued SBLCs for SMGP, the power arm of San Miguel Corp., to support floating solar and hydropower projects with a combined capacity of 1 gigawatt.
The deal aligns with San Miguel Corp.’s goal to reach net zero emissions by 2050. San Miguel chairman and chief executive Ramon Ang said the bank’s support assists the company’s push for increased renewable capacities to benefit the Philippine economy.
The bank also issued an SBLC for SN Aboitiz Power to guarantee a 50-megawatt floating solar power project.
The transaction represents the company’s first green trade facility as it expands its portfolio beyond its existing hydroelectric plants in northern Luzon.
SN Aboitiz Power Group president and chief executive Joseph Yu said the facility supports the company’s broader energy transition agenda.
The deal follows the November 2025 launch of MUFG’s sustainable trade solutions in the Philippines.
MUFG Manila deputy country head and head of global corporate banking Marie Diana Lynn Singson said the transactions demonstrate the bank’s commitment to teaming up with clients to transition toward a low-carbon future.
MUFG head of transaction banking for Asia Pacific Belinda Han said the bank would continue to champion sustainable trade initiatives across the region.
The transactions are structured to embed sustainability principles while providing credit support for large-scale energy infrastructure.
The government continues to use the Green Energy Auction program to meet internationally aligned climate commitments.
The program requires developers to meet strict timelines for solar and hydro commitments to ensure the stability of the national grid.
