Manila, Philippines, October 19, 2018— IFC, a member of the World Bank Group, has committed $150 million in a green bond issued by China Banking Corporation (“China Bank”), the first privately-owned commercial bank in the Philippines. The bond is the second green bond issued by a local commercial bank, opening up more financing for projects that combat climate change.
The bond follows IFC’s issuance of the first peso-denominated internationally-rated green bond called Mabuhay Bond in August, and an earlier issuance of a green bond by BDO Unibank – supporting the continuing development of the nascent green bond market in the Philippines.
“IFC is proud to play a role in creating a new green bond market in the Philippines, a country challenged by climate change impacts but where green financing is low,” said IFC’s CEO Philippe Le Houérou. “Our investment in this bond will increase access to new financing for climate-smart projects. IFC is keen to provide investment and advisory support to develop innovative green financing products with private sector players who are committed to contribute to achieving sustainable economic growth in the Philippines.”
The Philippine government has put in place key national policies to fight climate change. The green bond will see the bank scale up its investments in environmentally-friendly projects, supporting the government’s target of 70 percent reduction in greenhouse gas emissions by 2030.
William Whang, President of China Bank, said: “This bond affirms our long-term commitment to sustainability. We are glad to partner with IFC on our first green bond issuance to step-up our green lending activities and further contribute to a sustainable economy.”
The proceeds will finance climate-related projects in renewable energy, green buildings, energy efficiency and water conservation, in accordance with the Green Bond Principles.
IFC and China Bank first worked together in 2012 on a sustainable energy finance advisory project. It is expected that it will more than double its climate portfolio of PHP 10.9 billion (($0.207 billion equivalent) in a period of 5 years.
IFC is one of the world’s largest financiers of climate-smart projects for developing countries. IFC issued 32 green bonds totaling $1.8 billion—a record green bond issuance for IFC—in the fiscal year that ended June 30, 2018. The number of projects supported by IFC’s Green Bond Program has surged to 52 projects in FY18, from 32 projects in FY17—an all-time high number and volume of green bond-financed projects. The portfolio is anticipated to reduce greenhouse gas emissions annually by 6.3 million metric tons of carbon-dioxide equivalent—an increase from 2.2 million metric tons in FY17.
About IFC
IFC, a sister organization of the World Bank and member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
About China Bank
China Bank, founded in 1920, is one of the largest private universal banks in the Philippines providing a full range of banking products and services to corporate, commercial, and retail customers through 616 branches and 949 ATMs to date (including the 162 branches and 167 ATMs of China Bank Savings). It also offers a wide range of allied financial services through its subsidiaries China Bank Capital Corp., China Bank Securities Corp., China Bank Insurance Brokers Inc., and Manulife China Bank Life Assurance Corp. For more information, visit www.chinabank.ph.