CHINA Banking Corp. (China Bank) has issued $150 million in green bonds to fund climate change mitigation projects.

The Sy-led lender said in a disclosure on Friday that the sole investor in its maiden green bond issuance is the International Finance Corporation (IFC), a member of the World Bank Group.

The issuance brings China Bank’s climate portfolio to over $200 million or about P11 billion.

The proceeds of the issue will fund “climate-smart” projects, such as renewable energy, green buildings, energy efficiency and water conservation, the bank said.

“The bond supports the continuing development of the nascent green bond market in the Philippines and the government’s target of reducing carbon emissions by 70% by 2030,” China Bank said.

“This bond affirms our long-term commitment to sustainability. We are glad to partner with IFC on our first green bond issuance to step up our green lending activities and further contribute to a sustainable economy,” China Bank President William C. Whang was quoted as saying in the statement.

In August, IFC issued the Mabuhay Bond, its first peso-denominated green bond. The financial institution also subscribed to the green bond issuance of China Bank’s parent BDO Unibank, Inc. last year.

“IFC is proud to play a role in creating a new green bond market in the Philippines, a country challenged by climate change impacts but where green financing is low. Our investment in this bond will increase access to new financing for climate-smart projects,” IFC CEO Philippe Le Houérou said.

Shares in China Bank closed at P28.50 apiece on Friday, down 20 centavos or 0.70%.

Source: BusinessWorld