World Bank’s IFC investing $250M in BPI green bonds
MANILA -The World Bank’s International Finance Corp. struck its largest-ever deal with a domestic financial institution after agreeing to invest $250 million in Bank of the Philippine Islands’ upcoming green bond sale.
IFC is the sole subscriber of the bond issuance, which will follow the International Capital Market Association’s green bond principles.
BPI CEO Jose Teodoro “TG” Limcaoco said the planned green bond issuance will be the third such offer from the lender, which is owned by Zobel-led conglomerate Ayala Corp.
“As a bank known for its commitment to sustainable finance and climate change mitigation, we are delighted that IFC has entrusted us with this significant investment,” he said in a statement on Wednesday.
The proceeds from the proposed bond sale will be used to finance eligible projects, including renewable energy, energy efficiency, green buildings, electric vehicles, and climate-smart agriculture projects.
IFC also agreed to “help BPI build its capacity to assess the eligibility and impact of its climate projects,” the joint statement showed.
“IFC is pleased to continue its impactful partnership with BPI, a longtime client and partner in promoting climate finance in the Philippines,” said Jean-Marc Arbogast, IFC country manager for the Philippines.
“Thematic bonds are a key pillar of our longstanding commitment to not only tackle climate change, but also to help deepen sustainable capital markets in the country,” he added.