BPI Develops Blue Bond Program, Nears ₱1T Sustainability Loan Goal

MAKATI, Philippines — The Bank of the Philippine Islands (BPI), led by the Ayala Group, is developing a framework to issue blue bonds—financial instruments aimed at supporting marine and water-related projects—as part of its push to reach ₱1 trillion in sustainability-linked loans by 2026.

BPI CFO and sustainability chief Eric Luchangco said the framework should be finalized within the year, though the exact timing of the issuance will depend on funding requirements.

Blue bond proceeds will support projects in sustainable water use, marine energy, green shipping, responsible tourism, waste management, and more.

As of Q1 2025, BPI has already disbursed close to ₱900 billion in sustainability-linked loans, accounting for 39% of its ₱2.3 trillion loan book. The bank also aims to have at least 50% of its loan portfolio linked to sustainability initiatives by end-2026.

BPI’s Sustainable Development Finance (SDF) portfolio has funded 485 projects across energy efficiency, renewable energy, climate resilience, sustainable agriculture, and water initiatives.

Additionally, due to strong investor interest, BPI plans to increase the size of its SINAG bond offering—part of a ₱200-billion debt program. This bond, carrying a 5.85% annual interest rate, is scheduled for listing on June 10, 2025.