Hogan Lovells advises the International Finance Corporation on its investment in a US$250 million green bond issued by Bank of the Philippine Islands

The standalone Bond will have a floating rate of interest and a designated maturity of 3 years from issue. IFC is the sole subscriber for the Bond, which will be aligned with the International Capital Market Association's Green Bond Principles. This is the biggest deal IFC has done with a financial institution in the Philippines.

Proceeds from the Bond will be used to finance eligible green assets in the Philippines, including renewable energy, energy efficiency, green buildings, electric vehicles, and climate-smart agriculture projects, among others. While most of the proceeds will be used for local projects, part of the proceeds could also be used to invest in bonds with underlying green assets overseas. IFC has also agreed to help BPI build its capacity to assess the eligibility and impact of its climate projects.

"IFC is pleased to continue its impactful partnership with BPI, a longtime client and partner in promoting climate finance in the Philippines," said Jean-Marc Arbogast, IFC Country Manager for the Philippines. "Thematic bonds are a key pillar of our longstanding commitment to not only tackle climate change, but also to help deepen sustainable capital markets in the country."

The Hogan Lovells team was led by Singapore debt capital markets partner Andy Ferris with support from counsel Leon Yap and associate Audrey Koh.

Commenting on the transaction, Andy said: "We are delighted to have had the opportunity to support our valued client IFC on this important transaction. It is rewarding to be able to collaborate with IFC and issuers such as the Bank of the Philippine Islands to help advance ESG bond activity in the APAC region. Climate finance is an important tool in addressing some of the most challenging issues the world faces today. We are committed to working with our clients to implement solutions in this space."

For more information on how Hogan Lovells can support green, social and other ESG-linked bond issuance, please get in touch with Andy Ferris or Leon Yap.

About the Hogan Lovells DCM practice in Asia Pacific

The APAC dedicated debt capital markets (DCM) team has vast experience in advising issuers, underwriters, and corporate service providers on complex, market-leading debt deals. 

Our practice covers the full range of domestic and international straight debt and structured bond transactions, including standalone issuance, debt programmes, equity-linked securities, bespoke private placements, and sustainable and impact financing. Our clients include major financial institutions and corporates looking to obtain funding from the capital markets and the underwriters and service providers facilitating those debt raisings.

Client testimonials 

“The team at Hogan Lovells are responsive to the project's needs. They are able to relate to our industry and related key metrics.” Chambers Asia-Pacific 2023, Capital Markets: Debt – Asia-Pacific Region

“Hogan Lovells Lee & Lee provides professional service with the best-in-class legal advisors and partners. They have strong industry experience, diligent and empathetic associates, great understanding of the nuances of new age technology companies and it is always great to collaborate with them in getting work done with strict timelines.” Legal 500 Asia-Pacific 2023, Capital Markets: Equity and Debt: Foreign Firms