The International Finance Corp. (IFC) is investing USD100 million in Union Bank of the Philippines through the bank’s inaugural sustainability bond, marking another step in efforts to deepen the Philippine capital market while expanding financing for micro, small and medium-sized enterprises (MSMEs) and environmentally sustainable projects.
The proceeds of UnionBank’s first sustainability bond will finance loans to MSMEs as well as renewable energy, energy efficiency, and green building projects, broadening the bank’s portfolio of sustainable assets. The issuance follows international sustainability bond standards set by the International Capital Market Association and underscores the growing role of local debt markets in mobilizing long-term capital for inclusive and climate-resilient growth.
The investment builds on a partnership that began in 2021 when IFC subscribed to UnionBank’s maiden social bond, which financed more than 3,000 MSME loans during the pandemic. This latest transaction expands that collaboration by supporting both social and environmental objectives under a single financing framework.
“This landmark sustainability bond builds on our strong and continuing partnership with IFC and reflects UBP’s commitment to advancing our sustainable finance agenda,” said Johnson L. Sia, UnionBank treasurer and head of global markets. He said the proceeds would enable the bank to support more sustainable finance borrowers, helping businesses expand, create jobs, and contribute to inclusive economic growth.
IFC Country Manager Amena Arif said the investment demonstrates how sustainable finance can generate tangible economic benefits beyond environmental goals.
“Through this sustainability bond, IFC is helping ensure that growth translates into local jobs—creating income, dignity, and opportunity in communities across the country,” Arif said. “By expanding access to finance for MSMEs, we are enabling businesses to grow, hire locally, and build more resilient local economies.”
Beyond providing capital, IFC has also been assisting UnionBank through its 30 by 30 Zero Program, helping the bank identify new sustainability financing opportunities and diversify its portfolio into additional eligible sectors.
The transaction reflects rising investor appetite for sustainability-linked financing in the Philippines as banks increasingly tap the capital markets to fund projects that deliver both commercial returns and measurable environmental and social impact.
