BPI-IFC Green Bond to fund Alternergy Group’s 128MW Tanay Wind Farm

BPI's commitment to sustainable energy through the financing of the Tanay Wind Farm is a step forward in clean energy development and supporting the Philippines' transition to renewable power sources. —ALTERNERGY

The Bank of the Philippine Islands (BPI) signed a maiden deal with renewable energy firm, Alternergy Group, to help the company build a 128-megawatt wind farm in Tanay, Rizal.

The P4-billion loan to Alternergy Group is one of the eligible projects financed by the green bond issued by BPI with support from the International Finance Corporation (IFC), a member of the World bank Group. The project is also the first asset under the green bond to successfully embed environmental and social management provisions set by BPI and IFC in its facility agreement.

“This investment reflects our commitment to accelerating the energy transition in the Philippines,” said Jane Yuan Xu, IFC Acting Country Manager for the Philippines. “The banking industry will be crucial to these efforts, and we hope this project catalyzes more investments in renewable energy that will help the country achieve its climate goals.”

BPI’s investment banking arm was also tapped by the Alternergy Group to act as one of the Mandated Lead Arrangers for its syndicated senior secured term loan facility of up to P8 billion, in which BPI was chosen to participate as a lender and was awarded a 50% share in the facility.

BPI Asset Management and Trust Corporation was awarded the facility agent and collateral trustee role, while BPI/MS Insurance Corporation was awarded participation in the insurance requirements of the project.

“This transaction plays a crucial role in BPI’s effort to advance our commitment to sustainability,” said John-C Syquia, BPI Head of Institutional Banking. “We are deeply honored for this opportunity to work with Alternergy Group—who is truly a valuable client that shares the same vision on sustainability—and provide financing for their renewable energy project that promises to significantly benefit the environment and improve our energy security.”

Alternergy’s Tanay Wind Power Project is expected to generate about 261-gigawatt-hours of electricity annually and is expected to reduce carbon emissions by an estimated 178,420 tons of CO2 every year.

The transaction supports the Philippines’ national target of having renewable energy’s share in the total energy mix to increase to at least 35% by 2030.