Security Bank taps IFC to scale up green financing

SECURITY BANK Corp. has partnered with International Finance Corp. (IFC) to boost its green financing business and strengthen its framework to help the lender meet its sustainability goals.

Under the partnership, the IFC will work with Security Bank to establish a baseline for climate finance, enhance its sustainable finance business development capabilities, and improve its climate risk management system, the listed lender said in a statement on Monday.

“As our understanding of sustainability deepens, we recognize the pivotal role our bank plays in shaping the direction of the economy for growth and development. At Security Bank, we aspire to lead in this space by transforming the financial sector, supporting sustainable growth across various sectors, and propelling the Philippines toward a more sustainable and climate-resilient path,” Security Bank Executive Vice-President and Wholesale Banking Segment Head John Cary L. Ong was quoted as saying.

The partnership was made as part of IFC’s 30 by 30 Zero initiative, which targets to help financial institutions in the Philippines bring their climate-related lending to 30% of their portfolios and have minimal coal exposure by 2030.

“Security Bank has set some ambitious goals as it accelerates its sustainability journey, and we’re excited to be coming onboard as advisors at this critical juncture,” IFC Country Manager for the Philippines Jean-Marc Arbogast said.

“From defining their climate strategy to helping identify green financing opportunities, IFC is committed to helping Security Bank see through its green transformation,” he added.

IFC is a member of the World Bank Group and is a global development institution that works with private companies and financial institutions in emerging markets.

Meanwhile, Security Bank’s investment banking arm SB Capital Investment Corp. was one of the institutions that helped finance ACEN Corp.’s P10-billion ASEAN Green Fixed Rate Bonds in 2022.

The bank’s net income declined by 13.74% to P9.105 billion last year due to higher expenses and as it set aside more loan loss reserves

Security Bank’s shares climbed by 95 centavos or 1.38% to end at P69.55 apiece on Monday. — A.M.C. Sy