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IFC Renews Risk-Sharing Facility with BPI on Sustainable Energy Finance

SEF-financed projects significantly contribute to bank’s finance portfolio
Manila, the Philippines, January 25, 2016 – IFC, a member of the World Bank Group, signed a new risk-sharing facility with the Bank of the Philippine Islands that broadens its successful Sustainable Energy Finance program.
The program provides loans and technical advice to clients investing in energy projects to help reduce energy costs and cut greenhouse gas emissions. Greenhouse gas emissions are the main contributors to climate change, which has been blamed for severe weather events that cause massive loss of human lives and damage to property and livelihoods.
IFC provides risk sharing facilities and technical advice to partner banks who wish to lend to sustainable energy projects. The new agreement allows IFC and BPI to share the risk for up to PHP 3.5 Billion of the bank’s portfolio in distributed energy projects, Energy Service Companies (ESCO) projects, and green building construction.
Since 2009, BPI has released a total of Php 35.3 billion worth of loans with Php 24.7 billion outstanding as of October 2015, for energy efficiency, renewable energy and climate resilience projects. These projects help reduce greenhouse gas emissions by up to 1.9 million tons a year. This reduction in emissions is roughly equivalent to taking 362,000 cars off the road.
BPI’s SEF program has enabled companies to invest in new technologies aimed at improving the efficiency of energy generation, distribution and use, thereby cutting costs.
Among the renewable energy projects supported by BPI are two wind power projects with 51 MW combined capacity, six mini-hydropower plants with31.59 MW combined capacity, and 13 biomass projects. BPI-supported energy efficiency projects so far include the construction of 55 energy-efficient buildings, such as hotels, hospitals, and shopping malls. Climate resilience projects financed include 11 projects related to food security and a bulk water supply project.
“BPI has always been at the forefront of sustainable energy finance in the country,” said BPI President and CEO Cezar P. Consing. “We prioritize creating sustainable shared value in our business, and our partnership with IFC will enable us to carry on this commitment for the environment, our clients, and stakeholders.”
 “IFC is pleased to continue to work with BPI in the area of climate finance,” said Marcos Brujis, IFC Financial Institutions Group Global Director. “We look forward to supporting the emerging sectors in the sustainable energy market under this expanded facility.”
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
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About BPI
The Bank of the Philippine Islands (BPI) is a commercial bank with an expanded banking license. Together with its subsidiaries, BPI offers a wide range of financial services that include corporate banking, consumer banking and lending, investment banking, asset management, securities brokerage and distribution, insurance services, leasing, and foreign exchange. These services are offered to a wide range of customers from multinational corporations, government entities, and large corporations to small and medium-sized enterprises and individuals.
BPI is a leader in the Philippine banking, with its high market capitalization, strong Tier 1 capital adequacy ratio and healthy shareholder return, all promoted and supported by prudent management. It is highly regarded for its sound governance practices.
To date, BPI is rated investment-grade by major international ratings agencies.