DCM UBP Social Bond (IFC-44900)

Countries
  • Philippines
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Apr 30, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
UNION BANK OF THE PHILIPPINES
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 5, 2024

Disclosed by Bank Jul 23, 2021

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Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank's website, "the proposed project comprises an IFC investment of up to US$150 million for up to seven years in a COVID response social bond to be issued by the Union Bank of the Philippines. The investment is expected to support the Bank in growing its micro, small and medium enterprise (MSME) portfolio including SMEs in the supply chain finance and those impacted by disasters with significant consequences on public health, infrastructure or the economy such as but not limited to COVID-19. This will be the first Social Bond to be issued by the Bank under its recently issued Sustainable Finance Framework".

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

According to bank's website, "the proposed IFC social bond investment consists of up to US$150 million for a tenor of up to 7 years. The investment is expected to support the Bank in growing its micro, small and medium enterprise (MSME) portfolio and get much needed funding to this sector which is disproportionately affected by the COVID-19 crisis".

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

From bank's website:

Union Bank of the Philippines (UnionBank or the Bank) is the sixth largest private bank and eighth largest universal bank in the Philippines with total assets, loans, and deposits of approximately US$16.1 billion, US$7.1 billion, and US$11.0 billion respectively as of end 2020. The Bank provides various financial products and services such as deposit products, corporate, middle market, consumer lending, investment, treasury and capital market services, trust and fund management, as well as remittance services. The Bank was incorporated in 1968 and operates as a universal bank through its license granted in 1992. The Bank is listed in the Philippine Stock Exchange. The Bank has over 380 branches across the country as well as digital banking platform.

The Aboitiz Group owns 49.3 percent of UnionBank and is one of the largest conglomerates in the country with interests in power distribution and generation, infrastructure and industrial materials, food manufacturing, real estate, and financial services. The Aboitiz Group has total assets and total equity of US$12.7 billion and US$3.8 billion respectively. The Bank is also owned by the Social Security System of the Philippines (SSS), who holds a 15.29 percent stake. SSS is a government owned and controlled corporation that provides social security to works in the private sector. Insular Life Assurance Company (Insular Life) is one of the largest Filipino-owned life insurance companies and owns 16.3 percent of UnionBank.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Contact Information

Union Bank of the Philippines
Jose Emmanuel U. Hilado
CFO and Treasurer
+63266359442
jeuhilado@unionbankph.com
23F Unionbank Plaza, Meralco Avenue corner Onyx and Sapphire Roads, Ortigas Center, Pasig City, Metro Manila
https://unionbankph.com/

 

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works