IFC to guarantee 50% of BDO’s loans for energy efficiency, renewable energy

Business World

THE INTERNATIONAL Finance Corp. (IFC) will guarantee half of loans extended by Banco de Oro Unibank, Inc. (BDO) under the bank’s Sustainable Energy Finance Program.

The IFC, the private sector arm of the World Bank, said in a statement yesterday it has inked a risk-sharing facility with BDO, the country’s largest bank.

“IFC will guarantee up to 50% of BDO’s loans for energy-efficiency and renewable energy projects through the bank’s Sustainable Energy Finance Program,” IFC said.

By doing so, the IFC said it will encourage more private enterprises to undertake energy-efficiency projects, while becoming more profitable and reducing greenhouse gas emissions.

BDO President Nestor V. Tan was quoted as saying in the same statement that, “The risk-sharing facility allows the bank to leverage IFC’s support and global experience to successfully develop the market for sustainable energy investments.”

In a text message to BusinessWorld, Mr. Tan said “the loan facility is worth P2 billion.”

IFC launched its Sustainable Energy Finance Program in September 2009 to assist local banks finance energy-efficient and emission-reducing projects to address climate change.

It has also partnered with the Bank of the Philippine Islands, signing a risk-sharing facility -- its first with a Philippine bank -- in December 2009.