PURE ENERGY Holdings Corp. said renewable energy (RE) developers along with banks and investment firms should look at issuing ”green” bonds to finance their projects amid growing demand for renewables in the Philippines.
“We are closely monitoring the potential of green bonds in financing renewable energy projects in the country. Renewable energy is a sound and sustainable alternative energy source especially with the rise of oil prices due to geopolitical tensions and a weaker peso,” said Dexter Y. Tiu, chief executive officer of Pure Energy, in a statement.
Pure Energy said the issuance of green bonds would bolster private sector funding of local renewable energy projects. He noted demand for these securities should rise once the Securities and Exchange Commission issues guidelines for their issuance.
The investment holding company said green bonds posted strong growth in the international market last year with an issuance record of $157 billion. These bonds are an investment opportunity for the Philippines despite cost and demand issues that some investors are unwilling to take, it added.
“Investors should look past numbers and examine closely their investments. Investing in green bonds is not just profitable but proves to be a great investment in the long-run as it helps reduce greenhouse gas emissions through supporting RE projects. While green bonds are still at its early stage in the country, I am optimistic that local investors will see it as a growing asset and tap this potential investment,” Mr. Tiu said.
He called green bonds as the next frontier for renewable energy in the country, but admitted that the sector has a long way to go to convince investors and the public to shift to sustainable energy.
“The continuous decline of RE prices enables the RE sector to gain more traction but shifting to sustainable energy remains to be a challenge that we are proud to advocate for. We continue to be positive that issuance of green bonds will become the future of renewable energy financing in the Philippines marked by a stable bond market,” Mr. Tiu said.
Pure Energy said it was looking to acquire assets and “develop natural resources that are sustainable, and be a basic provider for the needs of the community.”
Aside from renewable energy, the company is into bulk water services and distribution to various cities, municipalities and communities. — Victor V. Saulon