BDO funds projects to address water crisis
Three major projects that address water scarcity and preserve clean water resources benefited from a $100-million blue bond issuance of BDO Unibank Inc. (BDO).
“We are committed to finance eco-friendly initiatives and innovative practices that nurture the environment and present opportunities for economic growth,” Federico Tancongco, senior vice president and chief compliance officer of BDO said.
BDO issued its maiden blue bond through an investment from the International Finance Corp. (IFC) in May 2022, marking the first private sector blue bond issuance by a commercial bank in Southeast Asia. It was also the first to follow IFC’s guidelines for blue finance.
“BDO’s issuance of the blue bond demonstrates the bank’s commitment to address the country’s water and wastewater management needs. We are pleased to partner once again with the IFC which has the technical expertise in blue finance,” Tancongco said.
According to BDO, the Luzon Clean Water Development Corp. (LCWDC) of the San Miguel Corp. was one of the blue bond beneficiaries.
The LCWDC provides water services through the Bulacan Bulk Water Supply Project, a public private partnership project of the government.
BDO’s second beneficiary was the Cleanway Environmental Management Solutions Inc. (CEMSI), which offers technology solutions for waste and wastewater treatment. CEMSI recently established a plant in Tarlac City to cater to more industrial and hospital facilities.
The lender also provided financing to the Wawa Bulk Water Supply Project of WawaJVCo Inc., a subsidiary of Razon-led Prime Infra. The project’s first phase started operations in October 2022.
The Wawa project was one of the flagship infrastructure projects of the government, seeking to solve the water crisis in Metro Manila and the province of Rizal.
The lender also said the blue-bond financed projects resulted in a 14 percent increase in households with clean water. It also benefited companies with increased wastewater treatment by 52 percent and supported hospitals with a 16 percent increment.