Philippines takes third spot in regional sustainable bond market
Sustainability bonds funding environmental and social projects made up 74 per cent of Philippine issuance, according to Moody’s Ratings.
The Philippines held a 17 per cent share of Southeast Asia’s sustainable bond market after raising US$23 billion between 2017 and the third quarter of 2026, Moody’s Ratings said. Only Singapore and Thailand ranked higher, according to the agency’s report, which used Environmental Finance data.
Bonds combining social and environmental financing accounted for 74 per cent of the Philippine total. Instruments dedicated to environmental projects represented 21 per cent, while social bonds contributed five per cent. Sustainable bond issuance in 2026 had reached approximately US$5.4 billion.
Banks and other financial institutions generated 54 per cent of cumulative issuance over the past decade. Moody’s identified nine Philippine banks that had issued sustainable bonds and said funding was broadening beyond renewable energy to include water infrastructure, green buildings, energy efficiency and financial inclusion.
Through 2025, sustainable finance-related lending by the five largest Philippine banks totalled ₱1.9 trillion. BDO Unibank Inc. accounted for ₱1.2 trillion. Its six sustainability bond offerings since January 2022 raised ₱518.7 billion, including ₱100 billion in January 2026 and ₱132 billion in July.
Moody’s also highlighted financing opportunities in disaster resilience, climate adaptation and the energy transition. The Philippine Energy Plan 2023-2050 targets a renewable share of electricity generation of 50 per cent by 2040, compared with 25 per cent in 2025.
The agency said further market growth would rely on credible selection of projects, openness in reporting and effective governance. Stronger financing frameworks would also be needed to sustain investor confidence and demonstrate environmental and social benefits.
