Responding to a call made by the president asking the private sector to participate in the government’s infrastructure projects, Dutch multinational banking giant ING recently expressed its intention to finance public-private partnership (PPP) infra projects in the Philippines.
In a press statement, the bank’s executives also expressed optimism about the country and the region’s growth prospects, adding that ING’s involvement in PPP projects in the future will not be limited only to lending and financing.
“ING is optimistic about the country and the region’s potential, especially in areas where ING can make a difference,” said Jun Palanca, head of ING Wholesale Banking Philippines.
For his part, Hans Sicat, country head of ING Philippines, said that the bank’s involvement in future PPP projects will not stop with lending or financing, as it will also get involved in the plans of private sector proponents to refinance their projects.
“We are very active in terms of looking at the various infrastructure-related projects,” he said. “In terms of the projects that the bank is currently involved in, we are currently advising on what type of various legal and financial structures to essentially optimize whatever project is being done.”
The ING Philippines head also noted that the bank will be ready to finance PPP projects, especially those that are led by the private sector. He adds that as of today, ING Bank is already involved in a number of infrastructure projects in the country.
Last October, President Ferdinand Marcos Jr. issued a statement calling on the private sector to support the government’s infrastructure initiatives, with at least 74 PPP projects worth P2.25 trillion in the pipeline.
In the same statement, the President said his administration would like to enhance the country’s business environment and allow the private sector to maximize its contribution to the revitalization of the country’s economy.
ING to grow financing efforts for renewable energy projects
According to Sicat, the entire ING Group is aiming to grow financing of renewable energy by 50% as of the end of 2025 and will cease to provide dedicated finance to new oil and gas fields.
“There’s a growing sense of urgency on climate change. It is clear that governments, businesses, and individuals have to all step in and help address it,” he said.
ING Bank is also planning to establish a power-generation lending portfolio that is 60% renewable in order to address climate change.
Over the last five years, ING’s exposure to renewables has more than doubled already and the Dutch banking company has since set a goal for the yearly amount of lending to renewables to be 50% more by 2025 compared to that reported in 2021.