The Bank of the Philippine Islands (BPI) has expanded its treasury activities under its Global Markets segment by adopting sustainability principles in its asset-liability management investment process.
Chief among these has been the creation and implementation of the Green, Social, and Sustainability Business Model for Debt Securities and Loans, business models for investing in green and renewable assets. With this, investment decisions have been aligned to be consistent with BPI’s existing Sustainable Finance Framework.
Accordingly, this has allowed BPI to expand the portfolio of eligible assets it can invest in, and at the same time, lend to companies involved in business with clear environmental benefits. While the project offers tangible benefits such as ‘meaningful’ balance sheet and revenue growth, the more notable impact is how it embeds sustainability considerations into the decision-making process of the Bank’s portfolio managers and credit officers.
“Sustainability has always remained at the forefront of BPI’s business strategy. Now that we are adopting a new set of sustainable principles for the investment process of our asset-liability management, we see that this will further push the Bank’s commitment to responsible banking and contribution to nation-building,” said Dino Gasmen, BPI Treasurer and Head of Global Markets.
On the sales side, Global Markets has provided treasury solutions to clients, including foundations and charitable organizations, educational institutions, healthcare, and clean energy, by servicing their foreign exchange requirements and helping manage risk exposures through hedging solutions. It services around 400 active Corporates and 750 SMEs, with the objective of growing its clientele’s current portfolio to promote sustainable and responsible banking.
For the past few years, the Bank – through Global Markets – has been supporting the expansion of a client engaged in the renewables business. The client, one of the fastest-growing energy companies in the country, aspires to be the largest listed renewable energy company in Southeast Asia. BPI serviced a total of around USD 70 million Forward contracts for loan payments and investments to hedge FX risk, lock in favorable rates through FX Forward transactions, and realize cost savings.