Bank of the Philippine Islands (BPI) is weighing the issuance of blue bonds as part of its growing focus on sustainable finance, signaling rising investor interest in water-related initiatives.
Blue bonds—financial instruments dedicated to funding water and ocean projects—have gained global traction as banks and investors increasingly align capital markets with sustainability goals. For BPI, the potential issuance offers a dual opportunity: mobilizing funds for critical water infrastructure while raising public awareness about water security in rapidly urbanizing regions.
“Investor demand is strong, and we see the value in building structured frameworks for sustainable financing,” said BPI Chief Finance Officer and Chief Sustainability Officer Eric Luchangco. “As we market these bonds, we also spotlight essential water projects.”
Luchangco emphasized that water, a resource often taken for granted in cities like Metro Manila, is crucial for long-term resilience. “Water is very basic, yet underappreciated. Investing in its infrastructure is investing in the future,” he said.
The bank is keeping its options open on currency denomination and funding structures, considering peso- or dollar-denominated instruments, as well as multilateral-backed notes. Decisions will hinge on market conditions, interest rates, and maturity schedules.
BPI does not follow a fixed issuance calendar, Luchangco noted, instead targeting optimal market windows to balance cost efficiency with long-term sustainability goals, including potential blue bond financing.
