The International Finance Corp. (IFC), a World Bank Group member, has invested $100 million in the sustainability bond offering of Aboitiz-led Union Bank of the Philippines to expand financing for micro, small and medium-sized enterprises (MSMEs) and support sustainable projects.
Proceeds from UnionBank’s first sustainability bond will be used to provide loans to MSMEs and grow its sustainability assets, including renewable energy, energy efficiency and green buildings.
IFC’s $100 million subscription will support the expansion of UnionBank’s green and social asset portfolio.
“This landmark sustainability bond builds on our strong and continuing partnership with IFC and reflects UnionBank’s commitment to advancing our sustainable finance agenda,” UnionBank treasurer and Global Markets head Johnson L. Sia said.
“Following our successful collaboration on UnionBank’s first social bond, this second partnership with IFC strengthens our ability to support sustainable finance borrowers so they can grow their businesses, create jobs, and contribute to inclusive growth in the Philippines,” Sia said.
IFC has provided technical support through its 30 by 30 Zero Program to help UnionBank diversify its portfolio, identify eligible sectors and expand sustainability-related financing opportunities.
The investment is part of IFC’s program to deepen local capital markets in the Philippines. In 2021, IFC invested in UnionBank’s first social bond, which helped finance more than 3,000 loans to MSMEs affected by the COVID-19 pandemic.
“We are excited to partner once again with UBP on another important milestone in deepening local capital markets in the Philippines,” IFC Country Manager for the Philippines Amena Arif said.
“Through this sustainability bond, IFC is helping ensure that growth translates into local jobs — creating income, dignity, and opportunity in communities across the country. By expanding access to finance for MSMEs, we are enabling businesses to grow, hire locally, and build more resilient local economies,” Arif said.
IFC said it committed a record $71.7 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. Source: REUTERS
