An international multi-media firm cited the Development Bank of the Philippines (DBP) for its maiden issuance of P18.125-billion ASEAN Sustainability Bonds last year.
The bonds, meant to bankroll projects on the environment and financial inclusion, won as Best Sustainability Bond – Financial Institution, in The Asset Country Awards 2020 of the Hong Kong-based financial publication The Asset.
“As a development financing institution, DBP has always been at the forefront of sustainable development and environment protection,” remarked DBP President and Chief Executive Officer Emmanuel G. Herbosa.
“We take pride and honor for this achievement as it recognizes DBP’s role as a catalyst for inclusive development,” he noted.
The ASEAN Sustainability Bond was the first bond program which exclusively focused on sustainability.
The bank used proceeds from the issue to fund projects that contribute to economic inclusion, climate change mitigation and adaptation, natural resource conservation, pollution control and prevention, and other social issues.
DBP raised P18.125-billion, which was upsized from the initial amount of P5-billion.
The amount represents the initial tranche of DBP's P50-billion Bond Program for financing environmental and social projects eligible under its Sustainability Finance Framework.
The bank allocated the bulk, or 83 per cent of the proceeds, to 15 projects in sustainable and renewable energy.
The balance was allocated evenly between initiatives for water supply and sanitation and health care.
"The bond issuance did not only provide for a sound investment but also accorded investors an opportunity for directly partaking in initiatives that advance social and economic advancement,” Herbosa pointed out.
Recently, the DBP raised P21-billion in its second bond issuance to fund various development projects of vital economic sectors affected by the pandemic.
Net proceeds of the second tranche would be earmarked for financing renewable energy, green buildings, clean transportation, energy efficiency, pollution prevention and control, sustainable water management, climate change adaptation, affordable basic infrastructure, affordable housing, food security, and other similar developmental initiatives.
“The second bond issuance would allow us to reach a wider network of stakeholders, especially in the countryside, as we take a step closer to becoming a P1-trillion bank by 2022,” according to Herbosa.