BPI Capital praised for first Climate Bond deal in Asia-Pacific
Two respected international publications, The Asset and Project Finance International Special Report, recently recognized BPI Capital Corporation for its participation in the Aboitiz Power Renewables Inc. (APRI) transaction—a project financing deal in which the first climate bond in Asia-Pacific was issued to fund APRI’s Tiwi-MakBan geothermal energy facilities.
Earlier this year, APRI issued a 10-year P10.7-billion local currency bond, which comes in addition to a five-year direct loan of P1.8 billion from the Asian Development Bank. It was backed by a partial guarantee from the ADB with risk participation by the Credit Guarantee and Investment Facility (CGIF).
BPI Capital acted as the mandated lead arranger and sole bookrunner for the transaction.
The Asset lauds the transaction for its innovative structure that “paves the way for financing large infrastructure projects despite regulatory constraints and enhances the bankability of projects allowing for broader market participation.”
On the other hand, the PFI Report notes that the project bond model “represents an exciting opportunity for ‘developing Asia’ issuers to access domestic debt capital markets for projects that would not otherwise qualify for financing.”
“There is more work to be done but the foundations for the use of project bonds in Asia have been set,” its report said.
Bonnie Banzon, head of Project Finance at BPI Capital, notes in the Asset that “the ADB credit enhancement allows the borrower to access the market at competitive rates and at the same time, secure longer term funding.”
Tiwi-MakBan is one of the world’s largest geothermal energy facilities with a combined installed capacity of 676 megawatts.
The Asset is an integrated multi-media company serving the community of leading corporate and financial decision makers in Asia. Project Finance International is Thomson Reuters’ source of global energy and infrastructure finance news, data and analysis.
ABOUT BANK OF THE PHILIPPINE ISLANDS
The 164-year-old Bank of the Philippine Islands is the first bank in the Philippines and Southeast Asia. We are a commercial bank with an expanded banking license. We provide diverse financial services that include deposit taking and cash management, asset management, securities brokerage, foreign exchange and capital markets investments, bancassurance, corporate lending, leasing, and investment banking. BPI has significant financial strength, with strong Tier 1 capital adequacy ratio and profitability, underpinned by a strong risk management regime. BPI is rated investment-grade by international credit ratings agencies.
ABOUT BPI CAPITAL CORPORATION
BPI Capital is the most trusted transaction advisor, credit sponsor, and financing originator to the most respected businesses and corporations in the country. With a renewed optimism for the Philippines as an investment destination, BPI Capital is the leading partner in accessing opportunities in the Philippines for the development of an Asian private equity portfolio.