IFC signs risk-sharing facility with BDO

International Finance Corp. (IFC), the World Bank's private sector investment arm, has signed a risk-sharing facility agreement with Sy-led Banco de Oro Unibank Inc. (BDO) for sustainable energy loans. IFC said in a statement Thursday the deal will encourage private enterprises to invest in renewable energy projects. Under the agreement, IFC will guarantee up to 50 percent of loans taken by investors from BDO. Jesse Ang, IFC resident representative to the Philippines, said the agreement is important. "It will enable BDO to expand its reach to small and medium enterprises that need financial support to help lower their energy costs and improve competitiveness." The risk-sharing facility will allow the bank to successfully "develop a market for sustainable energy investments," BDO president Nestor Tan said Since 2002, IFC and BDO have forged partnerships through IFC's Sustainable Energy Finance (SEF) program. IFC this year made a $150-million equity investment in the bank, and a $90-million subordinated note investment in 2007. The SEF program builds partnerships with domestic banks to increase funding in renewable energy projects. — JE/VS, GMANews.TV