BDO Unibank Inc., the country’s largest commercial bank, said it has provided over P33 billion in financing to renewable energy projects in the country.
“We have over P33-billion outstanding exposure to renewable energy investments. We have funded projects across the country—hydro, wind, solar, geo, biomass,” BDO senior executive vice president Walter Wassmer said during the Nordic Business Council of the Philippines Renewable Energy Forum.
Wassmer said investments in coal-fired power projects were still higher than in renewables. Thousands of megawatts of coal-fired power projects are in the pipeline, he said.
“We follow the cue of the developers. As of now, developers are dabbling in REs but a great of portion of investments are still in coal-fired plants,” he said.
Wassmer said BDO forged a partnership with the International Finance Corp., a member of the World Bank, in 2010 for sustainable energy investments.
“In 2010, we forged partnership with IFC. IFC provides advisory services to BDO and its clients while bank provides funding,” he said.
Wassmer said BDO was ready to meet the funding needs of the growing renewable energy industry but only viable projects would likely get funding.
“BDO is prepared to do its share to help the global movement to transition to sustainable clean energy society. We are prepared to support the low-emission and climate-resilient future. The consequences of inaction are just too immense,” he said.
“However, just because it’s RE does not mean it will automatically get funded. It behooves the developers and sponsors to build a strong business case for their projects, although properly structured and well thought-out, credit worthy renewable energy projects will find financing,” Wassmer said.
He said BDO could provide short, medium and long-term financing to credit-worthy sponsors of viable renewable energy projects.
“BDO has a dedicated corporate banking team that focuses on traditional and alternative energy. BDO can work with the project sponsors to tailor an optimal financing package,” he said.
He said banks such as BDO needed to tick off certain items before approving financing for renewable energy projects.