HSBC banks on green projects in Philippines

CEBU, Philippines — Global banking group, HSBC is capitalizing on the fast growing interest for green developments by expanding its financial access to green projects in the Philippines.

“It's an exciting time for the green bond market, particularly for ASEAN, including the Philippines. We are seeing corporates getting into the journey towards green financing,” said HSBC Philippines president and chief executive officer (CEO) Graham FitzGerald.

In January 2019 alone, HSBC Philippines has executed two innovative and highly successful Green/Sustainability bonds: as Sole Global Coordinator in AC Energy’s USD410mn Green Bonds – the first Climate Bond Initiative certified green bond listed, and the first publicly syndicated USD Green Bond in the Philippines; and as Joint Lead Manager in Rizal Commercial Banking Corp’s (RCBC) PHP15bn Green Bonds.

In the Philippines, more and more sectors and corporates are taking a conscious effort to approaching sustainable financing. Companies and countries look for new ways to fund their environmental and conservation projects, FitzGerald noted.

“We are seeing increasing association of green and sustainable corporate practices with a stronger credit profile: analysts value the efforts by corporate to "future proof" their activities,” said Michael Brennan, HSBC Head of Wholesale Banking in the Philippines.

Meanwhile, in the recent Forum on “Green Finance Towards a Sustainable Philippines”, organized by the British Embassy in partnership with the Philippine Government, British Ambassador to the Philippines Daniel Pruce said UK recognizes the need to bring together existing capabilities, create new business opportunities, and communicate to the wider market what London’s offer is in green finance.

The UK government is committed to working and building stronger collaboration with countries such as the Philippines as they seek to make the transition away from fossil fuels and towards a sustainable economy, the Ambassador said.

The strong partnership of the UK with Philippine government on green finance is a testament to the UK’s steadfast support for transitioning to a low-carbon pathway and addressing climate issues.

With climate change emerging as the most pressing global problem, green financing has turned into an effective weapon for countries, especially the highly vulnerable ones like the Philippines, to mobilize investments for both the government and private sector to carry out a broad list of initiatives, ranging from the wider use of renewable energy to improving the resilience of local communities to erratic weather patterns that lead to devastating natural calamities.

One of the most significant growth opportunities in the capital markets today is in green bonds. Green bonds are financial instruments issued by companies to investors, whose proceeds are used to finance projects that bring environmental benefits.

The global market for green, social and sustainability bonds (GSS) has demonstrated solid growth in 2018, and the success is attributed to the growing number of issuers and investors increasingly focused on sustainable investment activity. (FREEMAN)