Banking on a better Philippines.
Financing the move to a greener world
The Bank of the Philippine Islands (BPI), established in August 1851, is a member of the Ayala Group. Registered with the Philippine Securities and Exchange Commission (SEC) on January 4, 1943, BPI is one of the first institutions listed on the Philippine Stock Exchange. BPI’s vision is ‘Building a better Philippines – one family, one community at a time’.
As a bank responsible for a meaningful share of the country’s loans and deposits, how they allocate resources will have a significant impact on how they grow as a nation. Their governance is focused on the allocation of resources in a manner that promotes financial inclusion, preservation of the environment, sustainability, and social good.
As of October 2022, BPI has already received 7 of the most prestigious local and international sustainability awards.
Being a financial institution, BPI has a wide range of economic, environmental, and social (EES) impact areas reached through its arsenal of products and services across various channels. In the development of such products and services, the Bank considers the needs of its customers and other stakeholders via various engagement exercises. BPI’s sustainability formula emphasizes the need for economic benefits to make EES initiatives truly self-sustaining.
Being a leader in the Philippine banking industry, BPI has the vital responsibility to promote and nourish the country’s sustainable development through the mobilization of funds towards business activities that propel economic, environmental, and social objectives.
Through the years, and despite the disruption from the Covid-19 pandemic in 2020 and 2021, the Bank has steadily increased its financing of projects that contribute to the United Nations Sustainable Development Goals (SDGs). BPI’s SDG portfolio has grown from PHP538 billion in 2020 to PHP600 billion in 2021, reflecting an 11.5% growth. It accounts for 48% of the Bank’s total corporate portfolio.
While the Bank supports all 17 UN SDGs, the top five SDGs that the Bank contributed to in 2021 are as follows: SDG 9 Industry, Innovation, and Infrastructure; SDG 2 Zero Hunger; SDG 7 Affordable and Clean Energy; SDG 8 Decent Work and Economic Growth; and SDG 11 Sustainable Cities and Communities.
BPI Capital Corporation offers a wide range of investment banking services in the areas of financial advisory, loan syndication, project finance, mergers and acquisitions, private placement, debt and equity underwriting, as well as securities distribution. In 2021, total underwriting for green, social, and sustainable bonds reached PHP51.24 billion.
In 2022, BPI Capital also became the mandated lead arranger for the country’s first energy transition financing deal, wherein proceeds are used to accelerate the decommissioning of coal power plants and support renewable energy. The PHP13.7 billion or USD265 million deal was arranged for South Luzon Thermal Energy Corporation, a wholly-owned subsidiary of Ayala-led ACEN Corporation, in line with the Ayala Group’s “net zero” target through 2050.
In partnership with the International Finance Corporation of the World Bank Group, BPI introduced Sustainable Energy Finance (SEF) in the Philippine banking industry in 2008. The BPI SEF Program was used as a platform to help finance green and climate projects of the private sector. In November 2019, the program was rebranded as Sustainable Development Finance (SDF), further reflecting BPI’s commitment to the UN SDGs.
With the new and expanded SDF Program, BPI has consolidated its financing activities for renewable energy, energy efficiency, climate resilience, and sustainable agriculture.
BPI continues to expand its SDF program to reinforce its drive in spurring the country’s sustainable business growth. BPI’s SDF enables both SMEs and large businesses to positively impact the environment via projects that reduce greenhouse gas emissions and climate-proof their businesses. As a part of this endeavour, businesses likewise generate savings through increased efficiencies, leading to an increase in profitability.
As of December 2021, BPI has financed a total of 370 projects, with distribution as follows:
In 2019, BPI launched two 4x oversubscribed landmark transactions – CHF100 million and USD 300 million in ASEAN Green Bonds. The CHF 100 million issuance, which matured in September 2021, became the first negative-yielding CHF bond issued out of the Philippines. The remaining USD 300 million had the lowest ever coupon credit spread ever paid for by a Philippine bank at the time of issuance.
Top 5 BPI Sustainability Initiatives