IFC, a member of the World Bank Group issued the first internationally rated triple-A peso-denominated green bond — the equivalent of approximately $90 million with a 15-year maturity — to support the local capital market and renewable energy.
The bond, called the Mabuhay Bond, sets a precedent as the first green bond — denominated in Philippine pesos — to be issued by a multilateral development institution.
“Addressing climate change is a priority for IFC,” said Jingdong Hua, IFC Vice President, and Treasurer. “IFC’s Mabuhay bond showcases the powerful role that capital markets could play in mobilizing savings for climate finance. Adding pesos as a new green bond currency supports our goal to strengthen this important asset class.”
IFC is a triple-A rated issuer and has issued local currency bonds in over 30 countries to help build capital markets by attracting investors who want to put their money in low-risk investments.
“For the Philippines, the deepening of domestic capital market is critical for the long-term sustainability of the economy,” said Yuan Xu, IFC Country Manager for the Philippines. “The issuance of the Mabuhay bond evidences IFC’s commitment to support the country’s efforts to address climate change.”
IFC will use the proceeds of the bond to finance the Energy Development Corporation’s capital expenditure program, which is focused on optimizing the generation output of its geothermal power plants and improving resiliency to climate impacts. EDC is the Philippines’ largest producer of geothermal energy and one of the world’s largest integrated geothermal energy producers. EDC’s power generation in 2016 represents approximately 9 percent of the Philippines’ total power generation capacity.
Original source: IFC
Published on 25 June 2018
