$100M Blue Bond issuance helping address PH water crisis

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BDO Unibank Inc. (BDO)’s $100 million Blue Bond issuance helped mitigate climate change by financing activities that addressed water scarcity, preserved clean water resources, and prevented marine pollution in the Luzon area.

The BDO Blue Bond issued in 2022 was made possible by an investment from the International Finance Corporation (IFC) as the sole investor. It is the first private sector issuance by a commercial bank in Southeast Asia and the first to follow IFC’s Guidelines for Blue Finance.

BDO is the first Philippine bank to directly fund projects that protect water and the ocean as critical natural resources, pioneering a new financial instrument to protect the environment. By starting at the source, moving through use, and ending with the bodies of water, the Blue Bond-financed projects provide solutions to a systemic issue that ensure the availability of water resources and prevent ocean pollution for future generations.

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“We are committed to finance eco-friendly initiatives and innovative practices that nurture the environment and present opportunities for economic growth. BDO’s issuance of the Blue Bond demonstrates the Bank’s commitment to address the country’s water and wastewater management needs. We are pleased to partner once again with the IFC which has the technical expertise in blue finance,” said Atty. Federico Tancongco, Senior Vice President and Chief Compliance Officerof BDO Unibank.

IFC, a sister organization of the World Bank and a member of the World Bank Group, is one of the largest financiers of climate-smart projects in developing countries.

San Miguel Holdings Corp’s Luzon Clean Water Development Corporation (LCWDC), an MWSS concessionaire, was one of the blue bond beneficiaries. It was tasked to provide water services to the whole province of Bulacan through the Bulacan Bulk Water Supply Project (BBWSP), a Public Private Partnership (PPP) project of the national government.

LCWDC aimed to improve the quality of life of Bulacan residents by supplying steady and potable water and continuously expanding its service area coverage. Through the blue bond proceeds, 203,372 households were provided with clean water.

Cleanway Environmental Management Solutions, Inc. (CEMSI), the second beneficiary, provides an integrated and comprehensive technology solutions for waste and wastewater treatment. CEMSI established a new plant in Tarlac City to expand services to more industrial and hospital facilities. Through the blue bond proceeds, the new facility provided wastewater management services to 121 new businesses and 23 new hospitals. The volume of water treated also increased by 4,517 cubic meters (m3)resulting to an overall capacity of 22,585 m3.

In line with BDO’s thrust in shaping a more sustainable future, the Bank also provided blue financing to another noteworthy undertaking, the Wawa Bulk Water Supply Project of WawaJVCo Inc. which is a subsidiary of Razon-led Prime Infra.

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