The Bank of the Philippine Islands (BPI) said it recently established a framework pertaining to issuance of green, social or sustainable bonds or loans.
Dubbed as Sustainable Funding Framework, the Ayala-led bank said this is part of its Green Finance Framework and underscores the inclusion of projects that address social issues.
In June last year, BPI introduced its Green Finance Framework which is aimed at funding environmental projects. “Now more than ever, we have to constantly think about the broader impact of every project that we finance—how it impacts the environment, how it contributes to society and how it aligns with our vision of a better Philippines,” BPI President Cezar P. Consing said in a disclosure on Thursday.
The framework details the use of proceeds from the issuance, review and selection of projects, fund management and reporting.
BPI said the framework is also in line with the International Capital Market Association Green and Social Bond principles, the Loan Market Association Green Loan principles and the Asean Green, Social and Sustainability Bond standards.
BPI Capital Corp. served as social structuring advisor for the expansion of the listed bank’s framework.
In September last year, BPI priced its $300-million senior unsecured fixed-rate Association of Southeast Asian Nations Green Bond, the
proceeds of which was supposed to be used for financing and refinancing of eligible green projects.
The bonds carry a coupon rate of 2.5 percent and a reoffer yield of 2.577 percent. These will mature on September 10, 2024.
The offering was subscribed by over four times, BPI said, with most of the order book coming from Asia.
The listed bank saw its first quarter earnings slide by 5 percent to P6.39 billion in the first three months due to higher provisions for potential credit losses amid the pandemic. Revenues for the period, however, climbed by 10.9 percent to P25.26 billion while net interest income surged 13 percent to P18.14 billion.