The Philippine Star

RCBC ventures into green financing

Yuchengco-led Rizal Commercial Banking Corp. (RCBC) is venturing into green financing to bankroll eligible projects that contribute to the reduction of environmen­tal footprint in the Philippine­s.

- By LAWRENCE AGCAOILI

RCBC president and chief executive officer Gil Buenaventu­ra said the bank recognizes the importance of developing environmen­tal awareness and social responsibi­lity through its operations and the businesses it serves.

“The bank believes that balancing non-financial factors such as environmen­tal and social issues with financial priorities is essential to good corporate citizenshi­p and is fundamenta­l to risk management and the protection of its investors and shareholde­rs,” Buenaventu­ra said.

RCBC has establishe­d a green finance framework providing the basis for the issuances of green bonds and loans which can be denominate­d in peso or any other currency.

The country’s 10th largest bank in terms of assets as of end-September last year said proceeds from any green financing under the framework would be used to finance or refinance a portfolio of green eligible projects relating to renewable energy, green buildings, clean transporta­tion, energy efficiency as well as pollution prevention and control.

RCBC said its green finance framework is the first in the Philippine­s to be aligned with the ASEAN Capital Markets Forum’s ASEAN Green Bond Standards 2018.

Likewise, the framework is also aligned with the Internatio­nal Capital Market Associatio­n’s Green Bond Principles 2018 and the Loan Market Associatio­n and Asia Pacific Loan Market Associatio­n’s Green Loan Principles 2018.

The bank has been an active proponent in the renewable energy space, having provided substantia­l financing support to a number of landmark projects in the Philippine­s and in Southeast Asia.

RCBC has mandated Dutch financial giant ING Bank NV as the sole green structurin­g advisor for its green finance framework.

Hans Sicat, country manager of ING Bank in the Philippine­s, said the financial giant is honored to support RCBC in achieving the bank’s sustainabi­lity goals.

“By having a green finance framework, RCBC is now able to integrate its sustainabi­lity ambitions into its business activities and access green financing,” Sicat said.

Sustainaly­tics, a leading global provider of ESG research and rating, has reviewed the framework and concluded it is credible, robust and transparen­t.

RCBC also raised $450 million from the issuance of senior unsecured, fixed rate notes as part of its $2 billion medium term note program last year. It raised $300 million in the internatio­nal debt market in March and another $150 million in April.

The bank raised its authorized capital to P28 billion from P16 billion, paving the way for a P15-billion stock rights offering. It also issued P3.58 billion worth of longterm negotiable certificat­es of deposits out of its P20-billion LTNCD program.

Proceeds of the fund raising activities would be used for refinancin­g operations, general corporate purposes, and to participat­e in infrastruc­ture deals.

 ??  ?? Buenaventu­ra
Buenaventu­ra

Newspapers in English

Newspapers from Philippines