SM Group’s banking arm inks deal with IFC

CEBU, Philippines — BDO Unibank Inc. (BDO) has inked a partnership deal with the International Finance Corporation (IFC) to provide specialized training through the Alliance for Green Commercial Banks’ (Alliance) pilot program.

The SM Group banking arm, BDO said that this initiative aims to accelerate the green transformation of the banking and finance industry.

IFC experts conducted in-depth workshops on Green Finance for MSMEs (Micro, Small, and Medium Enterprises), Transition Finance, and Impact Financing among BDO leaders and relationship managers.

The Alliance is a global initiative convened by the IFC in partnership with the Hong Kong Monetary Authority. It aims to develop a community of banks leading in green finance across various markets to accelerate the green banking transformation of financial institutions and urgently address climate change.

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.

In 2023, loans deployed to Energy Efficiency projects accounted for 46.2 percent of BDO’s Green Finance portfolio. A significant amount funded a Public-Private Partnership for a 900MW Battery Energy Storage System (BESS) commissioned to address energy intermittency challenges in the country.

BDO continues to fulfill its commitment to finance other green initiatives including renewable energy (26.7 percent) clean transportation (14.7 percent) sustainable water and wastewater management (9.9 percent) pollution prevention and control (1.4 percent), green buildings (0.8 percent), and eco-efficient production technologies (0.3 percent).

As a pioneer in sustainable finance in the country, BDO is fully committed to reduce its carbon footprint while supporting the country’s transition by providing access to affordable, reliable, sustainable and clean energy and energy efficiency initiatives.