BDO funds 28 green projects from P52.7-B bond proceeds

Around 28 green projects benefitted from the first ASEAN sustainability bond issuance of BDO Unibank Inc. (BDO) in January 2022, bolstering the bank’s sustainability commitment.

“Proceeds of the first ASEAN sustainability bond financed 28 projects that supported the expansion of renewable energy sources which reduced greenhouse gas emissions, creation of sustainable infrastructure through construction or retrofitting of green buildings, and promotion of water conservation through enhancement of wastewater treatment facilities,” the bank said in a statement.

The bond proceeds also funded programs that generated employment, BDO said.

According to the bank, it provided loans for 488,450 micro, small and medium enterprises (MSMEs). It also funded activities which helped create or retain 70,655 jobs, especially for displaced, underprivileged and unemployed Filipinos.

“BDO remains committed to a sustainable future by providing financial support to initiatives that create opportunities, uplift the lives of Filipinos and help contribute to the nation’s progress while transitioning to a low carbon, environmentally responsible, and socially inclusive economy,” it said.

In January 2022, BDO raised P52.7 billion worth of ASEAN sustainability bonds, which were heavily oversubscribed after a P5 billion original offer, with strong demand from both retail and institutional investors.

The bank also released its first ASEAN Sustainability Bond Impact report, which outlines the environmental and social performance of the 28 financed projects.

The report was prepared following the ASEAN Guidelines on Sustainability Bond Standards, International Capital Market Association (ICMA) and Harmonized Framework for Impact Reporting.

It was also aligned with the United Nations Sustainable Development Goals (SDGs) targets and the BDO Sustainable Finance Framework.

As it continues to ramp up its sustainability initiatives, BDO raised a record P63.3 billion last month via its second foray into the ASEAN sustainability bond market last January.

The proceeds of the fund-raising activity will be used to fund eligible projects, further aiding the country’s sustainable development, including financing of 59 large-scale renewable energy projects, and expanding enterprise-wide efforts to foster positive environmental and social impacts.

The bank grew its earnings by 28.5 percent to hit an all-time high of P73.41 billion in 2023, driven by strong growth across its core businesses.