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IFC Partners with Philippine Bank to Develop Microfinance for Sustainable Energy Projects

Manila, Philippines, May 8, 2012 -- IFC, a member of the World Bank Group, has signed an agreement with mobile-based Philippine bank, BPI Globe BanKO, to develop microfinance that would help smaller businesses afford clean energy and energy-saving systems.
The advisory agreement with BPI Globe BanKO, jointly owned by Bank of the Philippine Islands, Globe Telecom, and Ayala Corporation, makes it the third Philippine bank to partner with IFC’s Sustainable Energy Finance program. The program stimulates investment in energy efficiency projects by supporting banks in building an energy efficiency financing business. The two other partners are Bank of the Philippine Islands and Banco de Oro Unibank.
“We are excited about this program because the smaller businesses and lower-income families are actually paying the highest prices for energy. Through the Sustainable Energy Finance program, we can help them conserve energy and access cheaper and environment-friendly sources of power,” said BanKO President Teresita B. Tan.
BanKO targets micro, small and medium enterprises, which account for some 98 percent of total businesses in the country and employ one of every three Filipino workers.  
Under the two-year agreement, IFC and BanKO will determine the demand for smaller renewable energy and energy-efficiency systems that could be financed by the bank, either through direct lending or through its network of non-governmental organization partners.
“By working with BanKO, we are taking the Sustainable Energy Finance program to a large but underserved market segment and, in so doing, empowering many more Filipino entrepreneurs to cope with increasing energy costs and improve their profitability,” said Jesse Ang, IFC Resident Representative in the Philippines.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit www.ifc.org .
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