State-run Development Bank of the Philippines approved a “substantial” loan to Filipino electric vehicle manufacturer Tojo Motors Corp.
Electric Vehicle Association of the Philippines president Rommel Juan said in a statement Tojo Motors obtained the loan from DBP, after the electric vehicle manufacturer submitted proper requirements. He did not disclose the loan amount.
DBP is a development bank mandated to provide banking services to small and medium-scale businesses.
The bank earlier allocated P10 billion for the green financing program to support more private companies, local government units and other groups undertaking environment-friendly projects.
The green financing program aims to reduce the environmental footprint from industrial operations and LGU projects, enable industries to achieve production efficiency and become globally competitive in fast-growing green markets and help both the private and public sectors comply with environmental laws and regulations.
The maximum loanable amount will depend on the project’s funding requirement, the proponent’s borrowing capacity and the projected cash flows.
Tojo Motors Corp. is the first electric vehicle manufacturer to take advantage of DBP’s green financing program.
Ralph Legaspi, president of Tojo Motors, said the company would use the loan package to finance its working capital and support expansion program to produce and distribute more electric vehicles in the country.
“It is good to note that DBP is true to its mandate in supporting developmental and climate financing programs like electric vehicle manufacturing and operations. This will not only create jobs and spur economic development but also contribute to emission reduction in the country,” Legaspi said.
Juan said that for a long time, no financing company would dare grant a loan to EV companies due to what they termed as the absence of a proof of concept.
“Now that financing is available, we must have proven that EV technology really works. Thus, we are happy to note that the EV industry has made a great stride forward as the road to financing was finally traversed by Tojo Motors,” he said.
Juan said the mission of EVAP was to promote the use of electric vehicles in various forms throughout the country.
“With this new development, we are confident that we will be able to reach our goal of having 1 million EVs in the Philippines by 2020,” he said.