Bank of the Philippine Islands (BPI) is set to receive a $250 million investment from the International Finance Corp. (IFC) to support the issuance of green bonds, aimed at fostering climate financing in the Philippines and aligning with sustainable finance practices.
The IFC, a part of the World Bank Group, will act as the sole subscriber for the green bond, which will adhere to the International Capital Market Association’s Green Bond Principles.
The investment will fund various green assets in the country, including renewable energy, energy efficiency, green buildings, electric vehicles, and climate-smart agriculture projects, with a portion also possibly directed towards bonds with overseas green assets.
BPI’s President and CEO, Bankero Jose Teodoro “TG” Limcaoco, expressed his satisfaction with the investment, highlighting the bank’s commitment to sustainable finance.
This initiative marks BPI’s third green bond issuance, with proceeds contributing to impactful projects for the betterment of communities.
Additionally, IFC’s involvement will aid BPI in evaluating the eligibility and impact of its climate projects.
The investment also aligns with IFC’s 30 by 30 Zero Program, focused on assisting financial institutions in increasing their climate-related lending and minimizing coal exposure, further contributing to sustainable development efforts in the Philippines.