RCBC prepping loans for renewable power plants

THE Rizal Commercial Banking Corp. (RCBC) announced it is preparing a loan facility to finance renewable power plants.

In a statement issued last Tuesday, RCBC Trust and Investments Group (TIG) said that it is finalizing with an unnamed partner a P20-billion loan facility for 10 renewable power plants.

'As RCBC continues to drive sustainable development and promote clean energy solutions, our collaboration with major renewable energy players reinforces our commitment to supporting the transition towards a greener and more sustainable future,' Robert B. Ramos, the head of RCBC TIG, said.

The arrangement is similar to the one that RCBC TIG had with Alternergy Holdings Corp. (PSE: Alter), a renewable energy company that focuses on the development of wind, solar, and run-of-river hydro power projects.

In March 2023, Alter went public and had an Initial Public Offering (IPO) that raised as much as P1.6 billion. RCBC TIG was the lock-up escrow agent and use-of-proceeds escrow agent for this transaction.

RCBC also has a partnership with ASA Philippines Foundation Inc., a microfinance non-government organization dedicated to empowering underserved communities through financial inclusion.

This month, ASA issued the first gender bond of P5 billion to support women entrepreneurs for their microenterprises. RCBC TIG acted as the Notes Facility Agent and Security Trustee for this deal.

Environmental, social and governance (ESG) factors are used to assess the sustainability of companies and countries. These three factors are seen as best embodying the three major challenges facing corporations and wider society, now encompassing climate change, human rights/poverty alleviation, and adherence to laws.

It is also described as a set of practices (policies, procedures, metrics, etc.) that organizations implement to limit negative impact or enhance positive impact on ESG recipients.

So far, RCBC has issued $1.4-billion in sustainable financing instruments that refinanced its eligible green and social assets since the implementation of its Sustainable Finance Framework.