World Bank arm bets on PH's green bond

ABS-CBN News

Posted at Dec 08 2017 07:27 PM

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MANILA - The country's biggest bank became the first lender in the Philippines to issue "green bonds," which will be used exclusively for climate smart-projects.

BDO Unibank has partnered with World Bank arm International Finance Corp (IFC) for the initiative, raising $150 million from a bond sale.

Vivek Pathak, IFC Director for East Asia and the Pacific, said a green bond fund came "too late" in the Philippines as it should have been at the forefront of the campaign, having experienced about 280 climate events from 1996 to 2015 and losing close to a million dollars of growth, according to a recent global climate risk index.

The green fund aims to attract "funders and investors that are focused exclusively on climate spot investments," he said in an interview with ANC's Market Edge.

Portions of the fund are earmarked for climate spot investments such as renewable energy, climate-smart agriculture projects, and green buildings, he said.

Pathak said there is an increasing interest in bonds of this kind and that they are in an "early state" of talks with some financial institutions and corporations to issue these.