Sustainalytics updates BDO’s SFF accreditation

New York-based Sustainalytics has updated the accreditation of Sy-led BDO Unibank Inc. (BDO) on its Sustainable Finance Framework (SFF) after the successful maiden $100 million blue bond issuance.

The accreditation of the country’s largest lender was expanded to include blue projects in the SFF eligible categories aligned with current market standards.

The leading independent environmental, social, and governance (ESG) research and ratings provider said BDO is adequately positioned to issue sustainability bonds and that the framework is robust, transparent, and in alignment with the four core components of the Green Bond Principles (2021), Social Bond Principles (2021), Green Loan Principles (2021) and the ASEAN Sustainability Bond Standards (2018).

“The expanded SFF includes eligible blue categories, such as sustainable water and waste water management, and offshore renewable energy. These are in addition to green categories that include among others, renewable energy, green buildings, clean transportation, as well as social categories that include employment generation and food security,” Sustainalytics said.

It added that the expanded framework strengthens BDO ’s support for targeted and responsible projects seen to facilitate the Philippines’ transition to a low-carbon economy, while advancing socio-economic development in the Philippines.

The bank, owned by the family of the late retail and banking magnate Henry Sy, earlier issued its maiden blue bond amounting to $100 million, through an investment from the World Bank’s International Finance Corp. (IFC).

The issuance expanded financing for projects that help prevent marine pollution and preserve clean water resources, while supporting the country’s climate goals.

BDO became the first private sector issuance in Southeast Asia to issue a blue bond.

BDO’s issuance reinforces its commitment to sustainable finance, allowing the bank to provide more support to critical areas, such as water conservation, wastewater treatment, plastic recycling, sustainable tourism, fisheries, and sustainable seafood processing, among others.

More importantly, the bond helps BDO expand its Sustainable Finance Framework to include projects supporting the country’s blue economy, while establishing a new asset class in the Philippine debt market.

The pioneering blue bond has a tenor of seven years and will adhere to the International Capital Market Association (ICMA) Green Bond Principle and IFC’s recently launched Blue Finance Guidelines.