The International Finance Corporation (IFC), which is part of the World Bank Group, has teamed up with Union Bank of the Philippines (UnionBank) in a major deal announced on July 15, 2026. This partnership aims to help small businesses grow while supporting environmentally-friendly projects across the Philippines.

What Is This Deal About?

Think of a sustainability bond as a special kind of loan that banks use to raise money specifically for good causes. In this case, IFC is investing $100 million in UnionBank’s very first sustainability bond. This is money that UnionBank will use to lend to small and medium-sized businesses (called MSMEs) and to support green projects like renewable energy, energy-saving buildings, and other eco-friendly initiatives.

According to Johnson L. Sia, who heads the Treasury and Global Markets at UnionBank, this is the bank’s second major partnership with IFC. He explained that this sustainability bond will help the bank support businesses that want to grow, create jobs, and help the Philippine economy in a responsible way.

How Does This Help Small Businesses?

MSMEs are like the neighborhood sari-sari stores, small restaurants, or local manufacturing shops—businesses that aren’t huge corporations but employ many Filipinos. These small businesses often have a hard time getting loans from banks. This deal makes it easier for them to borrow money so they can expand, hire more people, and contribute to their communities.

Amena Arif, IFC’s Country Manager for the Philippines, emphasized that this partnership is about creating local jobs and giving people opportunities to earn income and build better lives for their families.

Why Is This Called a ‘Landmark’ Transaction?

This is UnionBank’s first-ever sustainability bond, making it a significant milestone for the bank. The bond follows international standards set by the International Capital Market Association’s Sustainability Bond Principles, which ensures the money is used properly for social and environmental benefits.

This isn’t the first time IFC and UnionBank have worked together. Back in 2021, IFC invested in UnionBank’s first social bond, which helped finance over 3,000 loans to small businesses that were struggling during the COVID-19 pandemic.

Technical Support and Future Plans

IFC has been helping UnionBank through its “30 by 30 Zero Program,” which provides technical guidance to help the bank identify new opportunities for sustainable financing. This includes finding businesses in sectors like renewable energy and green construction that need funding.

The project is also supported by the World Bank Group’s Joint Capital Markets Program (JCAP) for the Philippines, which works to develop local capital markets and channel long-term financing into infrastructure, housing, and small business lending.

About UnionBank

UnionBank is a publicly listed universal bank in the Philippines known as a digital banking pioneer. The bank is owned by major shareholders including Aboitiz Equity Ventures, Inc. (AEV), the Social Security System (SSS), and Insular Life Assurance Company, Ltd. (InLife).

The bank has been at the forefront of digital transformation in Philippine banking. In 2018, it launched UBX, now the country’s top open finance platform. In 2022, it introduced UnionDigital, the only digital bank owned by a publicly listed bank in the Philippines. The bank also acquired Citigroup’s retail business in 2022 and successfully integrated it by 2024.

UnionBank trades on the Philippine Stock Exchange and continues to position itself as a “NextGen” bank focused on digital innovation and customer-centric services.

This article is based on the company’s official press release and disclosures filed with the Philippine Stock Exchange’s Electronic Disclosure Generation Technology (PSE EDGE) system. For the complete and official version of the announcement, readers may visit the PSE EDGE website and search for the company’s filing directly.