Connect with us

Hi, what are you looking for?

Economy

Philippines cited for ASEAN green-finance leadership

The Philippines was cited as a regional leader in sustainable finance thanks to the combined efforts of the government, banks, and businesses, according to a report issued by the international non-profit Climate Bonds Initiative (CBI).

“The Philippines is a leader in green finance in ASEAN. (It) has been increasingly exploring the use of green debt as well as equity instruments and has been expanding credit enhancement mechanisms and risk sharing options,” according to the Green Infrastructure Investment Opportunities (GIIO) Report 2020.

It cited Philippine initiatives in green bonds, green loans, and funds for green infrastructure and renewable energy, among others.

The report said the Philippine government helped develop “national and regional policies for facilitating further growth in green finance.”

“In 2019, the Philippines became members to the new Coalition of Finance Ministers for Climate Action and its Helsinki Principles, which promote national climate action through fiscal policy and the use of public finance. Prior to this commitment, the government and regulators had long been moving in this direction,” according to the GIIO Report.

The Department of Finance (DoF) said it is working on leading an inter-agency group called the Green Force to help coordinate green policy and regulations, Finance Assistant Secretary Paola A. Alvarez said during the GIIO report’s virtual launch Thursday.

“What we wanted to do is to harmonize definitions so that when investors come in, and they talk about green projects or sustainable projects, whatever government department they talk to- the Department of Energy, Public Works, the Securities and Exchange Commission, the Central bank or other banks….All of us would be talking about the same thing,” Ms. Alvarez, the Head of the Green Force, said.

According to the CBI, the Philippines had the third-most investments in the region in the green bond market, at around $2.6 billion as of August. Singapore invetment totaled $6.20 billion, and Indonesia $2.88 billion.

“To date, four domestic banks, the Bank of the Philippine Islands (BPI), Rizal Commercial Banking Corp. (RCBC), China Bank and BDO Unibank, have issued green bonds in three currencies: dollar, peso and Swiss Franc, with issuance in each currency amounting to $600 million, P15 billion, and CHF100 million ($108.6 million) worth of green bonds,” it wrote.

Meanwhile, eight firms- including Ayala Corp., Manila Water and Aboitiz Equity Ventures- have also issued green bonds to finance their various projects, according to the CBI Green Bond Database.

“The largest issuer of green bonds in the Philippines is (Ayala unit) AC Energy, with four green bonds outstanding, ranging in size from $ 75 million to $ 400 million,” according to the GIIO.

During the report’s launch, State Street Asia-Pacific Head of Fixed Income Kheng Siang Ng pointed out that the “supply of green bonds in the market is currently less than the demand.”

Securities and Exchange Commission (SEC) Commissioner Ephyro Luis B. Amatong said green bond issuers need to do more to assure invstors that they “adhere to international best practices.”

“There is no doubt that the investor appetite is there, and the funds are there, but… there is a requirement, there is some assurance that the issuers adhere to international best practice, (such as) having bonds certified by Climate Bonds Initiative. Another way is for the bonds to carry the ASEAN Green Social Sustainability Label (which) shows adherence to the ASEAN standards based on the green bond principles,” Mr. Amatong said.

Launched on Thursday, the CBI report was prepared with the support of the Securities and Exchange Commission (SEC), the Asian Development Bank (ADB), and the ASEAN Catalytic Green Finance Facility. — Angelica Y. Yang

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

RISING FOOD PRICES pushed inflation to a 14-year high in November, the Philippine Statistics Authority (PSA) said on Tuesday. Preliminary data from the Philippine...

Economy

THE WORLD BANK upgraded its growth forecast for the Philippines this year but expects the economy to expand at a weaker pace in 2023...

Economy

By Arjay L. Balinbin, Senior Reporter A PROPOSED MEASURE seeks to require National Economic and Development Authority (NEDA) Board approval only for projects worth...

Economy

THE MANAGEMENT ASSOCIATION of the Philippines (MAP) is seeking the creation of a public-private sector advisory council for various sectors, in order to improve...

Economy

THE HOLIDAYS shouldn’t be used as an excuse to binge-eat, warned a dietitian.  Christmas is just around the corner and with it comes an...

Economy

MANILA Electric Co. (Meralco) has secured a certificate of exemption from the Department of Energy (DoE) from the competitive selection process (CSP) for the...

You May Also Like

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.