TO expand financial inclusion and support human capital development in the Philippines, the International Finance Corp. (IFC) is investing $100 million in a social bond issued by City Savings Bank Inc. (CitySavings), the first thrift bank to issue a social bond. The social bond follows ICMA's Social Bond Principles and the Asean Social Bond Standard.

Proceeds from the social bond will be used for loans to women in low and lower-middle-income groups and encourage them to invest in small businesses to supplement their family's income and payments for healthcare, education, and housing.

CitySavings, a subsidiary of Union Bank of the Philippines (UnionBank), is one of the largest thrift banks in the country which provides salary loans to public school teachers, government workers, pensioners, and many other customer segments.

IFC's investment in CitySavings' social bond is part of a broader approach in the Philippines to work with partners to deepen capital markets for thematic bond issuances such as social, green and blue bonds.