BDO’s P52.7 billion bonds used for environmental projects

MANILA, Philippines — BDO Unibank Inc. has spent the P52.7 billion proceeds from its first ASEAN Sustainability Bond (ASB) on projects that address environmental and social challenges.

In a recently released ASB Impact Report, the bank highlighted the full allocation of ASB in January 2022 which generated P52.7 billion from retail and institutional investors.

“The report details how the bank allocated the bond proceeds to projects that address environmental and social challenges, following eligible categories under its comprehensive sustainable finance framework,” BDO said.

Of the total proceeds, P38.4 billion financed environmental projects aimed at mitigating climate change and promoting renewable energy.

BDO said these investments supported solar and wind energy installations, which have significantly reduced greenhouse gas emissions and contributed to the Philippines’ transition to cleaner energy sources.

In addition, the funds also financed energy-efficient infrastructure, such as green buildings, resulting in measurable reductions in energy consumption and promoting sustainable urban development.

Meanwhile, the remaining P14.4 billion was allocated to addressing social challenges, particularly funding projects that enhance the quality of life for underserved communities.

These projects include P8.8 billion for employment generation through microfinance services, and P5.6 billion for the agriculture, fisheries and food security sectors,  representing roughly a quarter of the country’s workforce.

BDO highlighted that the projects funded under its first ASB issuance align with the 17 United Nations Sustainable Development Goals, particularly SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities) and SDG 13 (Climate Action).

The bank emphasized that by focusing on these global priorities, it continues to play a vital role in mobilizing capital for sustainable development in the country.

“BDO’s 2nd ASEAN Sustainability Bond Impact Report underscores our dedication to financing projects that create measurable, meaningful, and long-term outcomes for both the environment and society. This bond reflects our commitment to fostering sustainable growth and inclusive development across various key industries for the nation,” BDO senior vice president and chief compliance officer Federico Tancongco said.

Since its first ASB in January 2022, BDO had two more ASB issuances in January and July last year where it raised P63.3 billion and P55.7 billion, respectively.

Looking ahead, BDO said it is committed to expanding its sustainable finance initiatives to address a broader range of environmental and social challenges.

“By leveraging partnerships with governments, non-government organizations and private sector entities, the bank aims to further accelerate the transition to a sustainable low carbon economy,” BDO said.

BDO is the country’s largest bank in terms of total assets, loans, deposits and trust funds under management.

The bank has the country’s largest distribution network with over 1,700 consolidated operating branches and more than 5,700 ATMs nationwide, and has 16 international offices in Asia, Europe, North America and the Middle East. It also offers extensive digital banking solutions to make banking easier, faster and more secure for its clients.

In the first nine months of 2024, earnings of BDO went up by 12 percent to P60.6 billion from P53.9 billion in the same period in 2023 after a strong performance in the third quarter.