Yuchengco-led lender Rizal Commercial Banking Corp. (RCBC) said more than 10 percent of its loan portfolio has been allocated to the so-called green projects.
The company said it has allocated some P39 billion to environment-related programs and social development projects. The said amount came from the net proceeds of the bank’s issuance of Green and Sustainability Bonds last year.
In its first-ever Green and Sustainability Bonds Impact Report, RCBC said it had channeled P29.8 billion to fund 17 eligible green projects on renewable energy, energy efficiency, clean transportation and sustainable water management.
Green bonds are called such since proceeds should only be channeled to specific environment-friendly projects.
RCBC floated in separate deals some P15 billion in green bonds and then another P8 billion of the same kind last year. It then sold $300 million in green debt to tap those investors overseas that only invest their funds in such kind of debt.
The bank also participated in a dozen renewable and energy efficiency financing deals, provided direct financial support to Southeast Asia’s largest solar power plant, and largely funded a 132.5 megawatt solar farm in Cadiz City, Negros Occidental. The bank is also the sole lender to AC Energy Philippines Inc., BIM Group, with a $232-million project financing for a 330-megawatt solar power plant in Vietnam.
Jamal Ahmad, RCBC Chief Risk Officer and Head of Risk Management Group, emphasized that the “Green and Sustainability Bonds Impact Report” is an important milestone for his employers.
“It is a first such initiative by a domestic bank in the country to publicly disclose the positive impact of its investments in sustainable activities,” Ahmad said.
RCBC also allocated P9.2 billion to fund 9,347 eligible social loans that address access to essential services, socioeconomic advancement and empowerment, employment generation, and affordable housing.
RCBC said it had P51.7 billion in eligible sustainable portfolio as of end 2019.
These include, on a total basis, 2,879 megawatts of capacity to generate 11.63 million megawatts of renewable energy per year, 380.9 million cubic meters of water supplied/collected/treated per year to serve 998,225 billed service connection households, 8,650 affordable houses financed, and P15.67 billion in loans given to underserved individuals, among other benefits in the transport, health care, and academic sectors.