The Philippine Guarantee Corporation (Philguarantee) and the Korea Credit Guarantee Fund are exploring financial support for businesses engaged in renewable and clean energy and digital technologies.

“We’re excited to discuss how we can work together towards shared goals of growth, innovation, and sustainable development,” Philguarantee President and chief executive officer Alberto Pascual said.

State-owned Philguarantee said its officials met with the South Korean institution last 8 April in the former’s office in Makati City to strengthen the countries’ partnership in encouraging financial firms to lend more to digital-centric or environmentally conscious businesses, including startups.

20% loans jump

Philguarantee said the idea for this collaboration sprang from its participation in conferences by the Asian Credit Supplementation Institution Confederation.

Philguarantee shared some details about its recent meeting with the South Korean credit guarantee provider after it reported a 20 percent growth in gross loan portfolio to P554.06 billion last year from P461.62 billion in 2023.

A portion worth P30 million was allocated for the Electric Cooperative Partial Credit Guarantee Program.

In November 2023, Pascual told Daily Tribune that Philguarantee registered credit support to 19 electric cooperatives promoting electric vehicles and several power generators, including a wind power farm in Ilocos Region and a geothermal power plant in Leyte.

He said demand for credit to build infrastructure for digitalization and clean energy could increase as more Filipinos prefer digital services. The government aims to increase the country’s renewable energy capacity from 12,751 megawatts in 2030 to 15,304 megawatts by 2030.

Pascual added that Philguarantee has been providing credit support mostly for housing projects, which account for about 70 percent of its total guarantee, while businesses help ramp up demand for emerging technologies and clean energy.