A JAPANESE government-owned financial institution has signed a deal with Banco de Oro Unibank Inc. for a $50 million facility aimed at providing funding for green projects in the country.
In a statement issued Wednesday, BDO said the green facility was approved by Japan Bank for International Cooperation (JBIC) for relending to environment-related undertakings focusing mainly on renewable energy in the Philippines.
BDO said the agreement is a first for JBIC with a Philippine private commercial bank.
It was formally sealed Wednesday with Hideo Naito, JBIC managing executive officer and global head of infrastructure and environment finance group; Walter Wassmer, BDO head for institutional banking; and Luis Reyes Jr., BDO head for investor relations and corporate planning, as lead signatories.
“The Green facility intends to bankroll–under the Global action for Reconciling Economic growth and Environmental preservation (GREEN) operations–environment-related projects, which contribute to lessening greenhouse gas (GHG) emissions,” the Sy-led bank said in a statement.
It is also seen to promote the Philippine government’s environmental policy while disseminating advanced Japanese environmental technologies which have been highly recognized globally, it added.
“The government has been taking vigorous steps to implement measures to cope with climate change, including the goal of reducing GHG emissions by 70 percent by 2030,” BDO said.
BDO said it has been building a partnership with JBIC in recent years. In March 2013, the parties signed a memorandum of understanding (MoU) for the development and strengthening of frameworks to support business expansions into the Philippines by Japanese mid-tier enterprises and small and medium enterprises via the Japanese regional financial institution.
JBIC, a policy-based financial institution wholly owned by the Japanese government, conducts lending, investment and guarantee operations while complementing the private sector financial institutions.