MANILA, Philippines — The Asian Development Bank (ADB) has provided support to renewable energy (RE) developer Alternergy Holdings Corp. (AHC) in securing its first green corporate loan.
In a statement, the multilateral lender said AHC’s loan was secured under the Green Finance Framework, which the multilateral lender helped develop.
The framework was developed in line with the International Capital Market Association’s Green Bond Principles, the Association of Southeast Asian Nations (ASEAN) Capital Markets Forum’s Green Bond Standards and the Green Loan Principles of the Asia Pacific Loan Market Association, the Loan Market Association and the Loan Syndications and Trading Association.
The initial tranche secured by AHC on May 29, consisted of a P2 billion green corporate loan with BDO Unibank Inc.
This will support the development of RE projects of AHC’s subsidiaries Alternergy Tanay Wind Power Corp. (ATWC) and Alabat Wind Power Corp. (AWPC), as well as other forthcoming projects.
“This transaction demonstrates our commitment to mobilizing green finance for sustainable development in the Philippines,” ADB Economic Research and Development Impact Department advisor Satoru Yamagata said.
He said RE developers like AHC could play a critical role in replacing carbon-intensive energy sources, which would reduce global warming emissions and at the same time, create employment and education opportunities to the project’s host communities.
ADB said it provided technical assistance to support project selection, bond framework development and capacity building through the Asian Bond Markets Initiative, an initiative of the governments of ASEAN, China, Japan and South Korea.
The PRC Poverty Reduction and Regional Cooperation Fund also supported the technical assistance program as part of ADB’s effort to catalyze sustainable bond issuances across Southeast Asia.
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