HSBC Extends ₱1.35-B Green Loan To Prime Infra Unit

British bank HSBC has arranged a $24.5-million or P1.35-billion green loan to a subsidiary of Razon-led Prime Infrastructure Capital (Prime Infra) for the acquisition of a Cebu-based local waste management operation.

Photo Insert: HSBC stated that the financing was for Prime Integrated Waste Solutions Inc. (PWS), a Prime Infra subsidiary, to purchase ARN Central Waste Management, a 17-hectare facility specializing in waste management and materials recovery in Cebu.

HSBC stated that the financing was for Prime Integrated Waste Solutions Inc. (PWS), a Prime Infra subsidiary, to purchase ARN Central Waste Management, a 17-hectare facility specializing in waste management and materials recovery in Cebu.

It said the loan will double the facility’s daily solid waste processing to about 2,000 tons from its current 1,000 tons.

The foreign bank recently reiterated its commitment to achieving net zero in its operations and supply chain by 2030, and in its financing portfolio by 2050. HSBC said it continues to work with clients to help reduce their emissions and scale up low-carbon solutions, as it reduces its own.

“In the Philippines and around the world, we stand ready to support our clients on their transition journeys,” said HSBC Philippines head of wholesale banking, Mimi Concha.

Meanwhile, Prime Infra president and CEO Guillaume Lucci said PWS was established to deal with the demand for waste management solutions especially in industrialized and fast-growing cities.

“(The) PWS’ business model covers the full value chain once the waste is delivered to our facility from treatment, disposal, resource recovery, to conversion. It changes the municipal solid waste and industrial solid waste management landscape for the better as we relentlessly pursue positive social and environmental initiatives that align with our purpose of making better lives and resilient economies through critical infrastructure,” said Lucci.

Concha said the green loan is one of its notable transactions in the country. It is in line with HSBC’s overall climate strategy “given the expansion of the facility will bolster sustainable waste management capacity, limiting the amount of waste that ends up in landfill and creating new jobs in an emerging sector,” she said.

She added: Prime Infra’s investment in waste management is part of a broader strategy to optimize the value created from waste through its complementary sustainable fuels business.

PWS’ transformation strategy, meanwhile, involves resource recovery to reduce the amount of trash in landfills, as well as operationalizing the recyclables business by producing refuse-derived fuel, said HSBC.

“PWS fully employs material recovery attendants from surrounding indigent communities and upholds high standards of safety to ensure the well-being of its entire workforce,” HSBC said.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic