BPI says blue bond issuance ‘inevitable’

The Bank of the Philippine Islands' (BPI) issuance of blue bonds or issuances designed to finance marine and ocean-based projects is “inevitable” and could possibly come in the first half of 2026, a top official of the Ayala-led lender said.

According to BPI chief finance officer and chief sustainability officer Eric Luchangco, the bank has set up a blue bond framework which will specify that the proceeds will go to eligible users, but the timing has yet to be decided on.

“When we’re ready to come to the market, I think there’s a good chance we’ll come with a blue bond, but it also depends. It depends on what we see at the time, where the interest is. I think it’s inevitable that we’re going to do a blue bond,” he said.

Blue finance covers sustainable water management, sustainable management of waste and wastewater; sustainable shipping; marine transportation, and port logistics; marine renewable energy; sustainable fisheries; sustainable tourism services; and solid waste management, among others.

“We set up the framework for a reason, but the question of when it’s going to be, is it going to be the next issue? Is it going to be the issue after that? We have to see, right?” he added.

Luchangco said the bank has yet to decide if the blue bond issuance will be international or local, following the strong demand of its one-and-half-year peso-denominated Supporting Inclusion, Nature, and Growth (BPI SINAG) bonds.

“That’s some of the things that we have to think about, so it’s still in the process. It’s still up in the air. We haven’t decided on that yet, so we’ll give it a little more time,” he said.

“Anyway, at this time, it’s not like we have to do it in the next week or two weeks or something, so we have a little time behind us, but the market is there. We believe the market is there,” he added.

Luchangco in May said BPI aims to hit P1 trillion worth of sustainability-linked loans by 2026, a target set by the bank in 2021. It also aims to have half of its total loan book be sustainability linked by the end of next year.

BPI saw a 13% year-on-year loan growth in the third quarter, and expects to sustain it for the rest of the year. Its nine-month income grew 5.2% to P50.5 billion, as revenues climbed 13.2% to P142.3 billion.—AOL, GMA Integrated News