BPI expands treasury activities with sustainability principles

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) has expanded its treasury activities by adopting sustainability principles in its asset-liability management investment process.

BPI treasurer Dino Gasmen said that sustainability remains at the forefront of business strategy of the 170-year old bank.

The listed bank has created and implemented the green, social, and sustainability business model for debt securities and loans, business models for investing in green and renewable assets, consistent with its existing Sustainable Finance Framework.

“Now that we are adopting a new set of sustainable principles for the investment process of our asset-liability management, we see that this will further push the bank’s commitment to responsible banking and contribution to nation-building,” Gasmen, who also head the bank’s global markets segment, said.

The new approach has allowed BPI to expand the portfolio of eligible assets it can invest in, and at the same time, lend to companies involved in businesses with clear environmental benefits.

While the project offers tangible benefits, such as meaningful balance sheet and revenue growth, the more notable impact is how it embeds sustainability considerations into the decision-making process of BPI’s portfolio managers and credit officers.

On the sales side, BPI – through its global markets segment – has provided treasury solutions to clients, including foundations and charitable organizations, educational institutions, healthcare, and clean energy by servicing their foreign exchange requirements and helping manage risk exposures through hedging solutions.

It services around 400 active corporates, as well as 750 small and medium enterprises (SMEs), with the objective of growing its clientele’s current portfolio to promote sustainable and responsible banking.

For the past few years, the listed bank has been supporting the expansion of a client engaged in the renewables business by servicing $70 million forward contracts for loan payments and investments to hedge foreign exchange risk, lock in favorable rates through foreign exchange forward transactions, and realize cost savings.