Bank of the Philippine Islands (BPI) approved a P4-billion loan to Alternergy Group to help it build a 128-megawatt wind firm in Tanay, Rizal.

In a statement on Thursday, BPI said the wind farm is the first project under its green bond facility with World Bank’s International Finance Corporation.

“The banking industry will be crucial to these efforts, and we hope this project catalyzes more investments in renewable energy that will help the country achieve its climate goals,” IFC Acting Country Manager for the Philippines Jane Yuan Xu said.

BPI shared that Alternergy also tapped its investment banking arm to serve as the mandated lead arrangers for a syndicated senior secured term loan facility of up to P8 billion.

“BPI was chosen to participate as a lender and was awarded a 50 percent share in the facility,” it added.

Alternergy’s Tanay Wind Power Project can generate 261 gigawatt-hours of electricity and reduce carbon emissions by 178,420 tons each year.

Carbon emission higher

According to the International Energy Agency, the Philippines emitted 137.5 million tons of carbon dioxide in 2022, up by 108 percent over three years.

The government aims to reduce its carbon emissions by 75 percent by 2030 by expanding the share of renewable energy to 35 percent of the country’s total energy mix.

“We are deeply honored for this opportunity to work with Alternergy Group — who is truly a valuable client that shares the same vision on sustainability — and provide financing for their renewable energy project that promises to significantly benefit the environment and improve our energy security,” BPI head of Institutional Banking John-C Syquia said.

Alternergy built Southeast Asia’s first on-grid wind farm along Bangui Bay in Luzon.

The firm also provides infrastructure for solar and run-of-river hydro power projects, including Palau Solar Hybrid Project, the largest in the Western Pacific.

Meanwhile, BPI in 2021 committed to stop funding new coal projects under its Energy Transition Financing Facility which helps companies to retire their coal plants 15 years ahead of their technical lives and shift to renewable power plants.