The Bangko Sentral ng Pilipinas issued Circular 1227, effective 6 January 2026, extending by two years the suite of regulatory incentives available to banks that finance green or sustainable projects in the Philippines.
The incentives preserved under the circular include an elevated credit exposure limit, allowing banks to exceed the standard 25% single borrower's limit by up to an additional 15% of their net worth for eligible green and sustainable projects. Banks that issue green, social, sustainability or sustainability-linked bonds also retain the exemption from reserve requirements on those bonds.
SUSTAINABLE BOND MARKET REACHES PHP 515.9 BILLION
Total issuances of sustainability, green, social and blue bonds reached PHP 515.9 billion in the first half of 2025. Within that total, sustainability bonds accounted for PHP 385.5 billion, the single largest category.
INCENTIVE PERIOD
The two-year extension takes the incentive framework to 6 January 2028.