Emperador Inc., the liquor producing venture of tycoon Andrew Tan, is tapping sustainable finance markets as it refinances existing debt, signaling a growing shift among Philippine firms toward linking funding strategies with environmental targets.
The company, together with Emperador Distillers Inc., will guarantee a EUR300 million sustainability-linked loan secured by its wholly owned subsidiary Emperador International Ltd.. The facility is arranged by a consortium of lenders led by Banco Bilbao Vizcaya Argentaria, Bank of China (Hong Kong) Limited, and DBS Bank Ltd., which are acting as mandated lead arrangers, underwriters, and bookrunners. BBVA and BOC will also serve as sustainability coordinators.
Structured as a sustainability-linked loan, the facility ties borrowing terms to two key performance targets: reducing Scope 1 and 2 greenhouse gas emission intensity and increasing the use of renewable electricity across operations. The approach reflects the energy-intensive nature of liquor production and the rising pressure on global manufacturers to decarbonize.
Emperador has already invested in several capital-heavy initiatives to lower its environmental footprint. These include a bioenergy center and carbon capture facility in Scotland, a biomass boiler in Jura, and renewable electricity contracts across its sites in Europe.
Solar installations and clean energy sourcing are also in place in the Philippines, Spain, and Mexico.
Chairman Andrew Tan said the facility aligns financial incentives with sustainability goals, marking a milestone for the group. The loan is also notable as the first sustainability-linked financing for the company and among the earliest for a Philippine food and beverage firm.
Beyond refinancing, the move highlights how access to capital is increasingly tied to measurable environmental outcomes.
For Emperador, aligning debt with sustainability metrics not only diversifies funding sources but also positions the group more competitively in markets where investors are placing a premium on climate-linked performance.
