IFC buys China Bank’s $150-M green bonds

International Finance Corporation (IFC), a member of the World Bank Group, has taken up the entire $150 million worth of green bonds issued by China Banking Corporation, the first privatelyowned commercial bank in the Philippines.

In a disclosure to the Philippine Stock Exchange, China Bank said its first green bond issuance will fund a fresh wave of environmentallybeneficial projects to help mitigate climate change.

The bond supports the continuing development of the nascent green bond market in the Philippines and the government’s target of reducing carbon emissions by 70 percent by 2030.

“This bond affirms our 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,” said China Bank President William C. Whang.

The US$150-million bond proceeds will be used to finance climate-smart projects, including renewable energy, green buildings, energy efficiency and water conservation, in accordance with the Green Bond Principles.

This green bond will bring up China Bank’s climate portfolio to over US$200 million (equivalent to about 111 billion), making it one of the market leaders for climate-smart financing in the country and one of a few banks that has established a clear sustainability strategy.

“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. Our investment in this bond will increase access to new financing for climatesmart projects,” said IFC CEO Philippe Le Houérou.

The bond follows IFC’s issuance of the first pesodenominated internationallyrated green bond called Mabuhay Bond in August, and an earlier issuance of a green bond by BDO Unibank – supporting the continuing development of the nascent green bond market in the Philippines.