35399 - BPI SEF III

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Summary of Investment Information

Project Number

35399

Company Name

BANK OF THE PHILIPPINE ISLANDS

Date SPI Disclosed

Jul 9, 2015

Country

Philippines

Region

East Asia and the Pacific

Projected Board Date

Aug 17, 2015

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Jun 12, 2021

Department

Regional Industry - FIG Asia & Pac

Industry

Financial Markets

Previous Events

Approved : Nov 24, 2015
Signed : Jan 22, 2016

Sector

Other Non-Banking Financial Institution (NBFI)

Project Description

IFC proposes to offer an enhanced Risk sharing facility (RSF) to Bank of the Philippines Islands (“BPI”) to continue to support the growth of its Sustainable Energy Finance (“SEF”) program focused on financing projects in Energy Efficiency (“EE”), Renewable Energy (“RE”). BPI is an existing client and IFC has previously provided an RSF for the Bank’s SEF business.

Associated Advisory Engagement

IFC is already providing Advisory Services to the Bank on capacity building to support the development of lending opportunities in energy efficiency and renewable energy. The advisory engagement with BPI on SEF has recently been expanded to support the Bank as it enters new areas such as Solar PV project and lending to ESCOs.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	42.74
Loan
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Guarantee	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The proposed risk sharing facility from IFC will support the Bank''s sustainability agenda, promote increased lending to the vital energy sector and support energy efficiency. Specifically, expected development impacts will include:

- Contribute to the development and diversification of the financial sector by supporting a leading bank develop new markets and products in sustainable finance.
- Through the demonstration effect from BPI, the project will support the mainstreaming of SEF among other commercial banks.
- Contribute to reduced greenhouse gas emissions pollution through the expansion of investment in energy efficient and renewable energy technologies.

- IFC will continue to provide technical assistance on development of RE/EE lending opportunities to BPI under this new project. In particular, under this new engagement the scope of our advisory services will extend to cover new areas such Distributed Energy and ESCO projects.

- Risk sharing will enable BPI to ramp up lending under its SEF at a faster level than would be the case where there is no credit risk support.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
CORE - E and S Management Systems (Y/N)	Compliance/Enhancement		Not Available	Not Available	Not Available
Resource Efficiency: GHG emissions reduction and Energy efficiency(%)	Resource Efficiency: GHG emissions reduction and Energy efficiency(%)		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The proposed Project is a risk sharing facility (RSF) to support energy efficiency and renewable energy investments which have limited adverse E&S risk and impact that are few in number, generally site-specific, largely reversible and can be readily addressed through mitigation measures. It has, therefore, been categorized as FI-2 in accordance with IFC’s Environmental and Social Review Procedure. Key Project’s performance requirements will include screening against and compliance with IFC Exclusion List, relevant local E&S laws and regulations and IFC Performance Standards where applicable.

The key E&S risks and impacts of the Project derive from the E&S risks and impacts of the RSF supported activities, and BPI’s capacity and quality of the E&S risk management system in place to manage these risks. IFC will set additional E&S specific eligibility criteria for the Project. Being an existing IFC client, BPI has developed and implemented an E&S management system which mainly consists of its E&S policy, E&S due diligent and monitoring procedures, and along with designations of roles and responsibilities for implementation of the system. For this Project, BPI will be required to improve the ESMS implementation and its capacity to ensure the compliances of RSF supported activities with the Project’s performance requirements. BPI was found to be generally in line with IFC Performance Standard 2 Labor and Working Conditions for its own labor and working practices.

Contacts

For Inquiries About the Project, Contact

Point of Contact: Aileen Ruiz-Zarate, Senior Investment Officer
Address: IFC – One Global Place
5th Avenue Corner 25th Street, Bonifacio Global City
1634 Taguig, Philippines,
Tel: +(632) 465-2700; Direct: +(632) 465-2723 Fax: +(632) 465-2703
Email: mailto:aruiz@ifc.org
Web: http://www.ifc.org

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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Task Title & Description	Anticipated Completion Date
Formalize procedures	09/30/2015
Staff Training	09/30/2015
Formalize procedures and capacity buriling for application of IFC Perfomrance Standards	09/30/2015

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