More Philippine firms seen to tap sustainable finance to enhance resiliency

PHILIPPINE companies are expected to integrate more sustainable financing into their capital-raising strategies as they pursue growth and build operational resilience amid economic and political uncertainties.

- By Revin Mikhael D. Ochave Reporter

More banks, real estate, and utility firms are expected to issue sustainability-linked bonds, DragonFi Analyst Jarrod Leighton M. Tin said.

“These instruments are often linked to environmental, social, and governance (ESG) performance, with interest rates tied to the achievement of specific key performance indicators — falling short can trigger a rate penalty. For companies that prioritize ESG, sustainability-linked bonds offer both strategic alignment and competitive funding terms,” he said.

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said sustainable finance will soon become a dominant form of fundraising for corporates.

“There is increasing issuer and investor demand for sustainable finance products, like green, social, and sustainability-linked bonds. So far, a lot of the funds raised from such issuances are flowing to support renewable energy and eligible real estate projects,” he said.

ING Philippines Country Manager Jun Palanca said the company is seeing strong client activity in the digital infrastructure and energy sectors, which are driven by long-term structural shifts.

“The energy transition is a major driver of investment activity. Despite broader market caution, renewable energy and transition-related mergers and acquisitions remain resilient across Australia, India, the Philippines, Japan, and South Korea,” he said.

“Digital infrastructure stands out as a key focus, with strong capital inflows into data centers, fiber networks, and connected ecosystems. Clients are increasingly focused on scalable, high-demand verticals — particularly artificial intelligence (AI)-enabled data platforms and regional connectivity solutions,” he added.

Mr. Palanca noted that ING is also intensifying its focus on Philippine clients in the food and agriculture sectors.