The country’s biggest lender BDO Unibank has raised $150 million from a pioneering “green” bond issuance, boosting private sector funding for climate change-mitigating initiatives.
This funding deal marks the first green bond issued by a commercial bank in the Philippines.
International Finance Corp. (IFC), the private sector investment arm of the World Bank, is the sole investor in the bond. This is also IFC’s first green bond investment in a financial institution in East Asia and the Pacific.
The funds will be used exclusively to finance climate-smart projects, including renewable energy, green buildings and energy-efficient equipment.
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The pioneering green bond is seen to provide an alternative source of long-term green finance in the country and contribute to the Philippines’ target of reducing carbon emissions by 70 percent by 2030 relative to its “Business As Usual” (BAU) scenario.
“Climate change is a very real concern in the Philippines. It is one of the most vulnerable countries globally to the impacts of such change,” BDO president Nestor Tan said on Friday. “This bond demonstrates our corporate commitment to come up with business solutions to address the challenges of sustainability.”
