Bank of the Philippine Islands (BPI) led by bankero TG Limcaoco has expanded its treasury activities under its global markets segment by adopting sustainability principles in its asset-liability management investment process.
The Ayala-led bank has implemented the Green, Social, and Sustainability Business Model for Debt Securities and Loans, business models for investing in green and renewable assets.
With this, investment decisions have been aligned to be consistent with BPI’s existing Sustainable Finance Framework.
Accordingly, this has allowed BPI to expand the portfolio of eligible assets it can invest in, and at the same time, lend to companies involved in business with clear environmental benefits.
While the project offers tangible benefits such as ‘meaningful’ balance sheet and revenue growth, the more notable impact is how it embeds sustainability considerations into the decision-making process of the bank’s portfolio managers and credit officers.
Dino Gasmen, treasurer and Head of Global Markets at BPI, said that sustainability has always remained at the forefront of BPI’s business strategy.
“Now that we are adopting a new set of sustainable principles for the investment process of our asset-liability management, we see that this will further push the bank’s commitment to responsible banking and contribution to nation-building,” the bankero said.
On the sales side, Global Markets has provided treasury solutions to clients, including foundations and charitable organizations, educational institutions, healthcare, and clean energy, by servicing their foreign exchange requirements and helping manage risk exposures through hedging solutions. It services around 400 active Corporates and 750 small and medium enterprises (SMEs), with the objective of growing its clientele’s current portfolio to promote sustainable and responsible banking.
For the past few years, the 170 year old bank has been supporting the expansion of a client engaged in the renewables business.
The client, one of the fastest-growing energy companies in the country, aspires to be the largest listed renewable energy company in Southeast Asia.
BPI serviced a total of around $70 million forward contracts for loan payments and investments to hedge foreign exchange risk, lock in favorable rates through FX Forward transactions, and realize cost savings.