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July 19, 2024

IFC invests $100 million in City Savings Bank’s social bond for women’s economic advancement

The thrift bank unit of the Aboitiz family, City Savings Bank has secured a historic $100 million social bond investment from the International Finance Corporation (IFC).

This groundbreaking issuance marks the first social bond issued by a Philippine thrift bank and aligns with ICMA’s Social Bond Principles and the ASEAN Social Bond Standard.

The funds raised will specifically target women in low and lower-middle-income brackets, providing loans aimed at fostering entrepreneurship and expanding small businesses. These initiatives are expected to boost family incomes, enhance access to healthcare, and facilitate investments in education and housing.

“This landmark issuance will enable us to expand our outreach to marginalized communities, advancing our mission to uplift lives,” said Lorenzo T. Ocampo, CEO of City Savings Bank.

As a subsidiary of Union Bank of the Philippines, City Savings Bank is one of the largest thrift banks in the country, specializing in salary loans for public school teachers, government employees, retirees, and various client groups.

“Investing in women not only aligns with our values but also strengthens our business strategy. This milestone issuance will enhance investor confidence and direct more capital to Philippine enterprises promoting social, economic, and gender equality,” said Riccardo Puliti, IFC’s Regional Vice President for Asia and the Pacific.