International Finance Corp., a member of the World Bank Group, has committed to invest $150 million in a green bond issued by China Banking Corp. as it continues to support developing the Philippines’ climate finance market.
The bond follows IFC’s issuance of the first peso-denominated internationally-rated green bond called Mabuhay Bond in August, and an earlier green bond issued by BDO Unibank in support of the 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,” IFC chief executive Philippe Le Houérou said in a statement.
“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,” he said.
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.
China Bank president William Whang said the bond affirmed the bank’s 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,” Whang said.
The proceeds will finance climate-related projects in renewable energy, green buildings, energy efficiency and water conservatio, in accordance with the Green Bond Principles.
IFC and China Bank first worked together in 2012 on a sustainable energy finance advisory project.
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 for IFC—in the fiscal year that ended June 30, 2018.