BPI plans to raise £10bn for green projects with term deposit product

The Bank of the Philippine Islands (BPI), led by Ayala, intends to raise 10 billion pesos for various environmental projects with a product that even students can afford, the lender says.

At a briefing last Tuesday, BPI’s Carmina Martinez said her new “green” savings term deposit product costs just 5,000 pesos ($87.22 at current exchange rates), which “most Filipinos can afford.” This is an “environmentally friendly, higher interest term deposit account” that provides investors with a reasonable return.

According to the country’s third-largest lender, the proceeds from the loan will be used for: projects related to improving energy efficiency and reducing energy consumption; renewable energy production; and planning, design and construction of green buildings.

“BPI is seeing a growing focus on sustainable investment and interest in environmental, social and governance efforts,” said Maria Cristina L. Guo, Head of Consumer Banking at BPI. “This green deposit solution empowers Filipinos to lead more sustainable lives and contribute to sustainable development by investing in projects that help achieve a better future for all.”

BPI stated that investing from 5,000 pesos to less than 50,000 pesos would have an indicative interest rate of 4 percent, while investing 50,000 pesos to less than 5 million pesos would have an interest rate of 4.25 percent.

Those with more funds to invest can opt for a placement of 5 million pesos or more at an interest rate of 4.5 percent per annum.

Interest income is credited monthly to the current account or paid at the end of a five-year period. Investments withdrawn before the expiration of the five-year period will be subject to a penalty.

Energy efficiency projects that can be funded under BPI’s Sustainable Funding Program include switching to inverter air conditioners; LED lights; refrigeration systems; and high efficiency motors.

For renewable energy projects, these include solar power plants; hydroelectric power plants; and onshore or offshore wind projects.

BPI said it is guided by the central bank’s “Sustainable Finance Vision” as it strives to achieve its goal of becoming the best sustainable bank in the Philippines.

The lender said its launch of the “Green Saver Time Deposit” signifies their “strong commitment” to incorporating sustainability not only into the conduct of their business and among their employees, but also among their clients.