Two of the biggest lenders in the Philippines are leading a surge in the sustainability bond market as they ramp up capital raising through themed offerings, signaling a shift toward green and inclusive investments.
BDO Unibank Inc., led by the Sy family, launched its fifth peso-denominated ASEAN Sustainability Bond last month. While the bank initially planned to raise at least P5 billion, the offering was 20-times oversubscribed. The massive demand forced an early close in mid-January and generated P100 billion in proceeds.
The three-year bonds are designed to support BDO’s sustainable lending activities and diversify funding sources under its Sustainable Finance Framework.
The bank continues to mobilize capital toward projects that provide environmental and social benefits. The latest offering is part of a series that has raised nearly P300 billion since 2022, reflecting a broad appetite for fixed-income products tied to ESG objectives.
Bank of the Philippine Islands (BPI) also marked a milestone in the local market with its BPI SIGLA Bonds, which stands for Supporting Inclusion, Growth and Lending for All.
The two-year bonds carry the “ASEAN Social Bond” label and will fund sustainable and social development projects. Analysts say the SIGLA issuance is a key part of the bank’s strategy to channel funds toward community and environmental projects.
The landmark deals highlight a deepening commitment among Philippine banks to integrate environmental, social and governance principles into core business strategies. The strong uptake of both issues underscores rising local investor interest in instruments that promise financial returns alongside measurable impact.
Other financial institutions are following suit. Banks such as Rizal Commercial Banking Corp. and Land Bank of the Philippines are lining up their own sustainability-linked bond offerings.
Market analysts suggest that as Philippine banks pioneer these financing tools, the trend could spur more impact-oriented capital market activity. This movement aims to bridge the gap between traditional finance and long-term societal goals.
