CEBU, Philippines — International bank HSBC sees a fast rising interest among companies, developers in the Philippines embarking on green and sustainable projects.
“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. There has already been a number of ‘firsts’ in terms of deals, and this is certainly increasing awareness among issuers and investors about the potential for this market,” said HSBC Philippines president and CEO, Graham FitzGerald.
According to FitzGerald, companies have realized that today’s modern consumers prefer or even for environmentally responsible brands or corporations.
Across the business community in ASEAN, the strategic imperative of transitioning down a more sustainable path is becoming increasingly understood.
In the Philippines, he said 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.
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) P15 billion Green Bonds – the first ASEAN Green Bond from the Philippines, and the first publicly syndicated PHP Green Bond in the Philippines.
In the case of RCBC, they are raising bonds to finance or re-finance green loans (i.e. funding for renewables / agriculture, etc.). AC Energy, on the other hand, already being in the renewables space, intends to expand their portfolio further with the proceeds of the bonds they raised.
“We expect sustainable and green debt issuance to continue to grow in popularity, and we have a responsibility to direct the flow of capital and help manage the transition to a low carbon society,” FitzGerald added.
According to Moody’s, global green bond issuance is expected to grow by 20 percent to reach $200 billion this year, supported by strong investor demand and government policies to address climate change.
“Sectors like green buildings, energy efficiency and renewable energy are showing very strong financial performance and we are seeing an increasing interest among our clients to invest in these sectors,” added FitzGerald.