BDO Promotes Green Financing by Supporting Eco-Friendly Businesses

As more developed countries continue to push for sustainable practices in businesses, academes and households, developing countries such as the Philippines is doing all its can to push for sustainable solution as it continues to develop its economies for its people.

Photo from 2020 BDO Unibank Inc. Sustainability Report

Among the leading priorities listed under sustainable program of the country is green energy. With most of the business in the Philippines relying of electricity to operate, many are still dependent on coal electric energy source through burning or coal and fossil fuels. This is why for 2030, the Department of Energy is pushing to move up the renewable energy supply component of the country to 35%.

Photo from 2021 BDO Unibank Inc. Sustainability Report

BDO Unibank Inc. (BDO), a full-service universal bank in the Philippines, strengthen its commitment to a sustainable future by providing access to capital and funding requirements to clients’ significant projects to fuel long-term development and business success while protecting the planet.

Photo from Surallah Power Generation, Inc.

Surallah Power Generation, Inc. produces renewable biomass energy through its biomass-fired power plant in South Cotabato. It started out as a producer of veterinary products and animal feeds. When the company discovered that the agricultural waste is best recycled into biomass energy to create a sustainable energy source, they recognized the need for a reliable banking partner who will provide financing as they venture into the power plant business.  Surallah approached BDO given its reputation as a pioneer in sustainable finance in the country.  The partnership has been successful, and Surallah is now constructing its second biomass-fired power plant in Palawan.
“BDO is very supportive in our endeavor. The Bank provides technical advice on how to efficiently and effectively manage and operate the power plant. Our credit facilities, lease lines and term loans are readily available and tailor-fit to our corporate requirements.said Atty. Rio Balaba, spokesperson of Surallah.
Surallah’s power plant benefits various stakeholders.  Farmers, farmers’ cooperatives and millers earn extra income by selling their agricultural waste such as rice and corn husks, as raw material for the biomass-fired power plant. Moreover, the residents and entrepreneurs are able to use more affordable electricity.
Biomass is a high potential renewable energy source for the Philippines given that 40% of the population is engaged in agriculture and the country has an abundance of organic agricultural waste.  BDO has the leading expertise for biomass energy financing, having funded the first biomass power plant in 2013 and with 15 biomass projects in its portfolio with an installed capacity of 164 watts.

BDO continues to offer financial support to green companies and renewable energy projects to provide livelihood, uplift the lives of Filipinos and contribute to the nation’s progress while transitioning to a low carbon, environmentally responsible, and socially inclusive economy.

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