SECURITY BANK Corp. targets to double its sustainable financing portfolio by 2025, the bulk of which will be made up of investments in wind and solar energy projects, a senior official said on Wednesday.
“The ambition is to book new renewable loans totaling P40 billion by end of December 2025. So, roughly doubling where we ended in 2023,” Security Bank Executive Vice-President and Chief Financial Officer Eduardo M. Olbes said at a media briefing.
As of end-2023, the bank recorded P43.6 billion in qualified green and social loans, it said.
Of this total, P20.6 billion went to renewable energy projects, P14.3 billion was allotted to access to basic infrastructure, P6.6 billion went to green buildings, and P2.1 billion was earmarked for access to essential services, Security Bank said.
Mr. Olbes said “a substantial amount” of their P40-billion renewable financing target for 2025 will be issued this year.
“We have quite a healthy pipeline on the renewable side. It’s a mix of both wind and solar. That is the lion’s share of the pipeline that we see today,” he added.
Aside from funding renewable energy projects, the lender is also looking at further growing its consumer segment by integrating this kind of financing into its loan products for small businesses and individuals, Mr. Olbes said.
“The largest part of our consumer loan book is home loans, and therefore we’re very open [to financing] part of the construction plan or home improvement plans, as well as the installation of solar panels or other things. That’s something that we’re very happy to provide financing for,” the official said.
He added that the bank’s small business lending segment will be rolling out products with a sustainability component later this year and early in 2025.
Security Bank’s net income rose by 11.4% year on year to P2.63 billion in the first quarter.
Its shares closed at P67.40 apiece on Wednesday, dropping by 35 centavos or 0.52% from the previous day. — A.M.C. Sy
