BPI allots P10 B for sustainable financing

Ayala-led Bank of the Philippine Islands (BPI) has initially earmarked P10 billion for sustainable financing to be sourced from its newly launched time deposit program.

Jo Ann Eala, head of BPI Sustainability Office, said in a virtual press conference that the amount could be increased depending on the take up of the new “green saver” time deposits product.

“We have already put together a portfolio of at least P10 billion to back this up and we’re getting ready for more as more and more depositors give us their money for this type of deposit,” Eala said.

Eala said the terms of the sustainable financing such as interest rate and repayment period vary depending on the profile of the clients, as well as the type of projects involved.

She said the funds are disbursed to finance the construction of green buildings, the shift from coal-fired power plants to renewable energy projects.

“Interest rate range depends on a per client basis depending on how big the project is, how long the clients have been with us, the cashflow and profitability of the project. There’s a host of credit considerations in the pricing of the loan,” Eala said.

According to Eala, the projects to be funded undergo rigorous screening procedures and are evaluated by experts from the International Finance Corp. (IFC).

She said the 171-year-old bank has disbursed a total of P220 billion for sustainable financing.

Carmina Marquez, head of deposits at BPI, said that the amount of “green saver” time deposits would be used for loans to sustainable projects and businesses.

“They will be given the opportunity to invest their funds in projects that have a positive environmental and societal impact. They will be able to achieve a sense of pride and fulfillment in contributing towards protecting the environment through a product that is affordable and accessible,” Marquez said.