The International Finance Corporation (IFC) has invested USD250 million in green bonds issued by the Bank of the Philippine Islands (BPI), securing the largest deal yet in a groundbreaking collaboration in the country.
Hogan Lovells in Singapore advised the IFC, the largest global development institution focused on the private sector in developing countries. Singapore debt capital markets partner Andy Ferris led the Hogan Lovells team, playing a significant role in this groundbreaking transaction.
This partnership marks a momentous stride in green finance, emphasising the IFC’s unparalleled commitment to addressing climate change through thematic bonds.
Hogan Lovells said this historic bond issuance will feature a floating interest rate and a designated three-year maturity, emphasising the IFC’s unwavering commitment to addressing climate change through thematic bonds.
As the sole subscriber to the bond, the IFC ensures its alignment with the International Capital Market Association’s green bond principles, establishing a pioneering standard for sustainable capital markets.
Proceeds from this green bond will finance eligible green assets within the Philippines, spanning renewable energy, energy efficiency, green buildings, electric vehicles and climate-smart agriculture projects.
Part of the funds could extend to investments in bonds with underlying green assets overseas. The IFC has also pledged to assist the BPI in enhancing its capacity to evaluate the eligibility and impact of its climate projects.
Jean-Marc Arbogast, IFC country manager for the Philippines, emphasised the critical role of thematic bonds in the fight against climate change and the development of sustainable capital markets. He expressed satisfaction with the ongoing partnership with the BPI, emphasising their dedication to fostering sustainable finance in the Philippines.
