UnionBank secures ₱6.2B IFC investment to expand MSME and green financing

Fresh funding will support small businesses, clean energy, and other sustainable projects across the Philippines.

UnionBank has secured a ₱6.16-billion investment from the International Finance Corporation (IFC), giving it more firepower to finance Filipino small businesses and projects ranging from renewable energy to green buildings.

The Aboitiz-led bank said IFC invested $100 million, or about ₱6.16 billion, in its first sustainability bond. The proceeds will be used to expand its portfolio of green and social assets, including renewable energy, energy efficiency, green buildings, and financing for micro, small, and medium-sized enterprises (MSMEs).

The funding could give more businesses access to capital at a time when many MSMEs continue to look for financing to expand operations, hire more workers, or invest in new equipment. Beyond business growth, the bond also supports projects that can reduce energy use and encourage more sustainable development.

The issuance follows the International Capital Market Association’s Sustainability Bond Principles and is backed by the World Bank Group’s Joint Capital Markets Program for the Philippines, which seeks to channel long-term financing into infrastructure, housing, and MSME lending.

This is also the latest partnership between UnionBank and IFC. In 2021, IFC invested in the bank’s first social bond, which financed more than 3,000 loans for MSMEs affected by the COVID-19 pandemic.

IFC said the new investment is expected to help businesses grow, create more local jobs, and expand access to financing across the country.

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