Takeaways

• BPI is preparing to issue its first blue bond to fund ocean and marine-based sustainability projects, possibly by mid-2026.
• The bank has already established a blue bond framework, but is still assessing market timing and whether the issuance will be local or international.
• The move aligns with BPI’s broader goal of reaching ₱1 trillion in sustainability-linked loans by 2026.

The Bank of the Philippine Islands (BPI) has said that its issuance of blue bonds, financial instruments designed to fund marine and ocean-based sustainability projects, is “inevitable,” potentially happening as early as the first half of 2026.

According to BPI Chief Finance Officer and Chief Sustainability Officer Eric Luchangco, the Ayala-led lender has already developed a blue bond framework, which will ensure that the proceeds are directed toward eligible sustainable uses. However, the bank is still assessing market conditions to determine the ideal timing.

“When we’re ready to come to the market, I think there’s a good chance we’ll come with a blue bond, but it also depends. It depends on what we see at the time, where the interest is. I think it’s inevitable that we’re going to do a blue bond,” Luchangco said.

Blue finance encompasses a wide range of sectors that contribute to the sustainable use of ocean resources. These include sustainable water and wastewater management, renewable marine energy, sustainable fisheries, shipping, port logistics, and coastal tourism.

Read More: Blue Bonds: Catalysing Investment in Marine Conservation

Luchangco explained that while the framework is already in place, the decision on when to issue, and whether it will be a local or international offer, remains under consideration.

“We set up the framework for a reason, but the question of when it’s going to be, is it going to be the next issue? Is it going to be the issue after that? We have to see, right?” he added.

BPI’s recent experience with its Supporting Inclusion, Nature, and Growth (SINAG) bonds, a peso-denominated sustainability issue that attracted strong investor demand, could influence its next steps.

“That’s some of the things that we have to think about, so it’s still in the process. It’s still up in the air. We haven’t decided on that yet, so we’ll give it a little more time,” Luchangco said, noting that there’s no immediate rush but strong confidence that the market appetite for blue bonds exists.

The planned issuance forms part of BPI’s larger sustainability ambitions. The bank aims to reach ₱1 trillion in sustainability-linked loans by 2026, a target set in 2021. It also plans for half of its total loan portfolio to be sustainability-linked by the end of 2025.

BPI has been showing consistent financial growth alongside its sustainability agenda. In the third quarter, the bank reported a 13% year-on-year loan growth, projecting continued momentum through the year. Its nine-month income rose 5.2% to ₱50.5 billion, supported by a 13.2% increase in revenues to ₱142.3 billion.

Also Read: How Blue Finance is Driving Africa’s Climate-Resilient Ocean Future

With a growing commitment to sustainability and investor interest in blue finance, BPI’s anticipated blue bond issuance marks another step toward advancing the Philippines’ role in ocean conservation and sustainable finance.

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Source: GMA NEWS ONLINE