IFC Invests $100 Million in CitySavings' to Empower Low-Income Women in Philippines

Riccardo Puliti, IFC's Regional Vice President for Asia and the Pacific, highlighted that investing in women is both a moral imperative and a sound business strategy.

The International Finance Corporation (IFC) is investing $100 million in a social bond issued by City Savings Bank, Inc. (CitySavings) in the Philippines. This marks the first issuance of a social bond by a thrift bank in the country, adhering to the International Capital Market Association's (ICMA) Social Bond Principles and the ASEAN Social Bond Standard.

Purpose and Impact

The proceeds from this social bond will be directed towards providing loans to women in low and lower-middle-income groups. The goal is to enable these women to invest in small businesses, thereby supplementing their family incomes. Additionally, the funds will support payments for essential needs such as healthcare, education, and housing.

Significance

Lorenzo T. Ocampo, Chief Executive Officer of CitySavings, emphasized that this landmark issuance will enhance the bank's ability to serve underserved and vulnerable segments of society, aligning with its mission to elevate the lives of people. CitySavings, a subsidiary of Union Bank of the Philippines, is one of the largest thrift banks in the country, offering salary loans to public school teachers, government workers, pensioners, and other customer segments.

Broader Context and Previous Initiatives

Riccardo Puliti, IFC's Regional Vice President for Asia and the Pacific, highlighted that investing in women is both a moral imperative and a sound business strategy. He noted that this issuance would bolster investor confidence and attract more capital to companies in the Philippines that promote social, economic, and gender equality.

This investment is part of IFC’s broader strategy in the Philippines to collaborate with partners to deepen capital markets for thematic bond issuances, including social bonds, green bonds, and blue bonds. Previously, in July 2021, IFC invested in a $150 million social bond issued by UnionBank, which financed 4,000 loans to micro, small, and medium-sized enterprises (MSMEs) to help them recover from the pandemic's impact. Additionally, in November 2021, IFC partnered with Ayala Corporation to issue the first social bond in the healthcare sector in the Philippines, funding the development of a dedicated cancer hospital, which received EDGE certification as the first green hospital building in the country.

 

IFC’s investment in CitySavings' social bond is expected to significantly enhance financial inclusion and support human capital development in the Philippines. By targeting loans to women in low-income groups, this initiative aims to foster economic empowerment and improve living standards for vulnerable populations, further promoting social, economic, and gender equality in the region.