The International Finance Corp., the private sector funding arm of the World Bank, has signed a new risk-sharing facility (RSF) with Bank of the Philippine Islands.
The facility will allow the two parties to share the risk for up to P5 billion of the bank’s portfolio for clean energy projects. It is part of IFC’s Sustainable Energy Finance (SEF) program, which provides loans and technical advice to energy efficiency and renewable energy projects, which are aimed at cutting the high cost of electricity and mitigate the adverse effects of climate change.
In a statement, IFC said BPI was the first Philippine bank to sign up for the SEF program after its launch in 2008. The following year, BPI enrolled loans of about P1.4 billion under its first risk-sharing facility with IFC.
“BPI is committed to continue working with IFC on a program that helps small- and medium-size enterprises lower their power costs and improve their bottom line. SEF is also a way to help address the country’s energy situation and make local businesses more competitive,” BPI president Aurelio Montinola III said.
Serge Devieux, IFC director for financial markets in Asia, noted that the partnership had been “very productive not only in terms of the robust lending pipeline it has developed but also in raising awareness among entrepreneurs and demonstrating that lending to energy efficiency and renewable energy projects can be a profitable and sustainable business for banks.”—Amy R. Remo