BDO launches first Philippines green bond
BDO Unibank (BDO), Philippines’s largest bank, has launched its first green bond amounting to US$150m to strengthen its financing for private sector investments that help to address climate change.
The International Finance Corporation (IFC) is the sole investor in the bond and is its first green bond investment in a financial institution in East Asia and the Pacific.
The transaction will provide an alternative source of long-term green finance in the country and contribute to the Philippines’ target of reducing carbon emissions by 70% by 2030 relative to its business as usual (BAU) scenario and conditioned on international support.
The bond proceeds will also be used to finance climate-smart projects, including renewable energy, green buildings and energy-efficient equipment.
The financing is expected to help save 93,000 tonnes of C02 emissions per year by 2022.
According to IFC, the green bond issuance is a culmination of its advisory engagement on sustainable energy finance with BDO that started in 2010. It helped establish sustainable energy finance as a core part of the bank’s sustainability strategy.
IFC, the private sector financing arm of the World Bank Group, has undertaken initiatives to help the private sector to promote green financing. In India, IFC invested 6.67bn rupees (US$103m) in L&T Infrastructure Finance Company by subscribing to the latter’s first green bond offering in July this year.
BDO president and chief executive officer Nestor Tan said that climate change is a very real concern in the Philippines. This bond demonstrates our corporate commitment to come up with business solutions to address the challenges of sustainability.