RCBC seeks to grow sustainable loan portfolio

RCBC chief risk officer and head of corporate risk management services Jamal Ahmad.

Rizal Commercial Banking Corp. (RCBC) on Thursday said it aims to grow the share of sustainable loans to its total loan portfolio, following the 10% climb in 2019.

According to RCBC chief risk officer and head of corporate risk management services Jamal Ahmad, the lender seeks to grow its sustainable loan portfolio.

"In RCBC, our sustainable portfolio is 10% of our loan and it is growing," he told reporters in a press conference in Makati City.

"Our strategic objective is to grow this book and continue to make a positive impact. We will aspire to keep growing this without setting specific targets at this point," he added.

In 2019, RCBC allocated P39 billion — the net proceeds from its issuance of Green and Sustainability Bonds — to environment-related and social development projects.

It channeled P29.8-billion fund to 17 eligible green projects covering renewable energy, energy efficiency, clean transportation, and sustainable water management.

The bank was also involved in 12 renewable and energy efficiency financing deals, including a 132.5-megawatt solar farm in Cadiz City, Negros Occidental.

RCBC was likewise the only lender to AC Energy and BIM Group with a $232-million project financing for a 330MW solar power plant in Vietnam.

"The Green and Sustainability Bonds Impact Report is an important milestone for RCBC," said Ahmad.

"It is a first such initiative by a domestic bank in the country to publicly disclose the positive impact of its investments in sustainable activities," he added.

According to the latest data available, the Yuchengco-led bank booked a 41% increase in its net income to P4.5 billion in the first nine months of 2019, up from the P3.2 billion recorded the comparable period in 2018.

RCBC currently offers commercial, corporate and consumer lending products, cash management products, treasury products, and remittance services.

Along with its subsidiaries, the lender is engaged in all aspects of traditional banking, investment banking, retail financing, remittance, leasing, foreign exchange, and stock brokering.

Moving forward, Ahmad said he is optimistic that there is local demand for more sustainable financing issuances.

"It's brought investors from all the major financial centers, so we're very pleased with the performance so far. I can't speculate about the future," he said. —KBK, GMA News