SPEAKING OUT
The International Finance Corporation (IFC), an affiliate of the World Bank, has committed a substantial investment of $250 million into a green bond issuance by the Ayala-led Bank of the Philippine Islands (BPI). This represents a significant collaboration between IFC and a Philippine financial institution.
“As a bank known for its commitment to sustainable finance and climate change mitigation, we are delighted that IFC has entrusted us with this significant investment,” said BPI President and CEO Jose Teodoro K. Limcaoco.
The purpose of this investment is to support projects with environmental benefits in the Philippines. These projects encompass a range of initiatives such as renewable energy ventures, energy-efficient initiatives, environmentally friendly construction projects, electric vehicle programs, and climate-resilient agricultural undertakings, among others.
BPI's green bond, in this case, will be subscribed solely by IFC. The bond's utilization will be in alignment with the principles established by the International Capital Market Association for Green Bonds.
The economic susceptibility of a substantial portion of the Philippine population to natural calamities is a concern. To address this, the projects supported by the green bond will contribute to environmental protection and community betterment.
This transaction marks BPI's third instance of securing funds for environmentally conscious projects through green bonds. IFC's involvement is particularly noteworthy due to its commitment to addressing climate change and advancing global sustainability goals.
Beyond the direct investment, IFC will also provide expertise to enhance BPI's ability to assess the suitability and impact of its climate-focused projects.
Importantly, this collaboration aligns with IFC's 30 by 30 Zero Program. The program aims to promote climate-related projects and diminish coal-related exposure within financial institutions' portfolios, with the end goal of achieving 30 percent climate-related lending by 2030.
As part of their efforts, IFC and BPI are also contributing to the development of sustainable capital markets in the Philippines by aiding other banks in executing similar projects through training, workshops, and regulatory assistance.
To sum up, this partnership between IFC and BPI signifies a significant investment in environmentally conscious projects, a demonstration of IFC's global sustainability objectives, and a pivotal step toward the growth of green financing within the Philippines' financial sector.