IFC launches first green bonds in Phl

International Finance Corp. (IFC), the investment arm of the World Bank Group for the private sector, has launched the Mabuhay Bond – the first peso-denominated green bond in the Philippines – to bankroll the optimization program of Lopez-led Energy Development Corp. (EDC).

In a statement, IFC said it issued yesterday the first internationally rated triple-A peso-denominated green bond

amounting to about $90 mil- lion with a 15-year maturity to support the local capital market and renewable energy development.

The Mabuhay Bond sets a precedent as the first green bond denominated in Philippine peso to be issued by a multilateral development institution.

IFC vice president and treasurer Jingdong Hua said addressing climate change is a priority for the investment bank. “IFC’s Mabuhay bond showcases the powerful role that capital markets could play in mobilizing savings for climate finance. Adding pesos as a new green bond currency supports our goal to strengthen this important asset class,” he said.

A triple-A rated issuer, IFC has issued local currency bonds in over 30 countries to help build capital markets by attracting investors who want to put their money in low-risk investments.

IFC will use proceeds of the bond to finance EDC’s capital expenditure program, which is focused on optimizing the generation output of its geothermal power plants and improving resiliency to climate impacts.

This year, EDC is spending P6.1 billion to increase the resiliency of its power assets especially those hit by natural calamities.