BPI to hit P1-T green loans ahead of target

The Bank of the Philippine Islands (BPI) expects its sustainable financing to breach the P1-trillion mark earlier than target, although it may take a while before it accounts for half of its loan book.

- By ELIJAH FELICE ROSALES

BPI chief finance officer Eric Luchangco yesterday said the bank is close to attaining its goal of disbursing P1 trillion in sustainability-linked loans by 2026, a target it set in 2021.

As of March, Luchangco said BPI has issued about P900 billion in loans for sustainable projects, accounting for 39 percent of the bank's credit portfolio.

However, Luchangco said it would be challenging to hit the other objective of making sustainable financing take up half of BPI's loans by 2026. Overall, borrowings are increasing, helped by the reduction in interest rates, and this is driving loan activity even for non-sustainable purposes.