Pure Energy mulls local green bonds

MANILA, Philippines — Local investment holding firm Pure Energy Holdings Corp. (PEHC) has expressed interest in local green bonds once the Securities and Exchange Commission (SEC) issues new guidelines for the fund-raising option.

The company sees demand for green bonds to rise once guidelines are issued by the SEC. It also said the issuance of green bonds would bolster private-sector funding of renewable energy (RE) projects in the country,

“We are closely monitoring the potential of green bonds in financing RE projects in the country. Renewable energy is sound and sustainable alternative energy source especially with the rise of oil prices due to geopolitical tensions and a weaker peso,” PEHC CEO Dexter Tiu said.

Green bonds have seen a strong growth in the international market last year with a record issuance of $157 billion.

PEHC said this as an investment opportunity for the Philippines despite cost and demand issues which some investors are unwilling to take.

“Investors should look past numbers and examine closely their investments. Investing in green bonds is not just profitable but proves to be a great investment in the long-run as it helps reduce greenhouse gas emissions through supporting RE projects. While green bonds are still at its early stage in the country, I am optimistic that local investors will see it as a growing asset and tap this potential investment,” Tiu said.

Tiu said the growing demand for RE in the local market is seen as a good opportunity for banks, investment companies, and RE industry leaders to consider the green bond market as the next frontier for renewable energy in the country.

However, he admits the RE sector has a long way to go to convince investors and general public alike to shift to sustainable energy.

“The continuous decline of RE prices enables the RE sector to gain more traction but shifting to sustainable energy remains to be a challenge that we are proud to advocate for. We continue to be positive that issuance of green bonds will become the future of renewable energy financing in the Philippines marked by a stable bond market,” Tiu said.

PEHC is an investment holding company which aims to strategically acquire assets, develop natural resources that are sustainable, and be a basic provider for the needs of the community. It is currently engaged in renewable energy and bulk water services and or distribution to various cities, municipalities, and communities in the Philippines.

Earlier this year, its solar subsidiary, Just Solar Corp., signed a share purchase agreement to initially acquire 60 percent of Solar Powered Agri-Rural Communities Corp. (SPARC), owner of three major solar farms in Central Luzon.

PEHC’s other renewable energy subsidiaries include, Repower Energy Development Corp. and Pure Geothermal Inc., which hold a portfolio of operating run-of-river hydropower plants and geothermal assets respectively.