Green credit wins ACES award for DBP
DBP funds solar power developers that aim to sell their product through the Wholesale Electricity Spot Market
Daily TribuneDBP funds solar power developers that aim to sell their product through the Wholesale Electricity Spot Market
The Development Bank of the Philippines (DBP) received the “Green Initiatives Award” at the Asia Corporate Excellence and Sustainability (ACES) Awards 2024 for loan projects that help protect the environment and communities vulnerable to climate change.
State-owned DBP was among the 100 companies and business leaders from 22 countries in Asia that were awarded by the event organizer, Malaysia-based MORS Group, in Bangkok, Thailand.
“DBP will remain a top sustainability advocate in the country in the foreseeable future through its various development financing facilities as well as its strategic partnerships with other government agencies, international organizations, and private entities,” DBP president and chief executive officer Michael de Jesus said.
As of end-December last year, DBP provided credit to over 509,194 borrowers, which include micro, small and medium enterprises, with the focus on their projects’ environmental impact as the bank requires all borrowers to submit feasibility studies on the project location and impact, including flood or earthquake scenarios, wildlife and biodiversity preservation, and pollution under the DBP’s Credit Policy on Environmental and Social Due Diligence.
To encourage businesses to provide renewable energy (RE), DBP introduced the Solar Merchant Power Plant Financing Program which funds solar power developers that aim to sell their product through the Wholesale Electricity Spot Market.
The Philippine government aims to produce 15,304 megawatts of RE by 2030. The Department of Energy said this means the country’s sources of RE should expand to 35 percent of its total energy mix during this period.
For its loan portfolio, the bank regularly evaluates environmental factors and related incidents that may affect the viability of DBP-financed projects.
To further boost critical industries anchored on sustainability, DBP in May announced a P8.75 billion in bond proceeds for projects on telecommunications, water and agriculture.
“With this issuance, DBP takes another crucial step to shore up economic recovery and resilience efforts in the post-pandemic era for the Philippines with the Bank leading the way in channeling much-needed capital into the economy while facilitating investments in key sectors to boost economic activity,” De Jesus said.
The new award to DBP also recognized its policies in preventing greater poverty among marginalized groups. This means the projects should not result in involuntary resettlement or loss of livelihood of persons and irreversible adverse impacts on physical cultural resources and heritage.
DBP is the 10th largest bank in the country in terms of assets.