IFC Invests in China Bank Green Bond

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The FINANCIAL — IFC, a member of the World Bank Group, has committed $150 million in a green bond issued by China Banking Corporation, 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.

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.

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.


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