ADB weighs US$500 million loan for SM Prime's Pasay City development

The Asian Development Bank is considering a US$500 million loan for infrastructure supporting a 360-hectare Pasay City development by SM Prime Holdings. The nonsovereign loan, to be extended to SM Smart City Infrastructure and Development Corp., is scheduled for board consideration on 25 Nov 2026.

The Asian Development Bank (ADB) is considering a US$500 million (P31.7 billion) loan for infrastructure supporting a 360-hectare Pasay City development sponsored by SM Prime Holdings, Inc., according to a project document.

“The project will be located in a highly urbanized and environmentally sensitive coastal area where reclamation activities are subject to heightened regulatory scrutiny and stakeholder attention,” the ADB said. “To address identified risks and ensure alignment with ADB’s environmental and social framework, the borrower agreed to implement an environmental and social action plan,” it added.

The proposed nonsovereign loan will be extended to SM Smart City Infrastructure and Development Corp. and is scheduled for board consideration on 25 Nov 2026. The financing will fund roads, bridges, coastal protection structures, flood management systems and water, power and wastewater infrastructure within the development.

The ADB said the project would be built on a reclamation platform that had been substantially completed before the proposed financing. The lender classified the project as carrying substantial environmental and social risk, citing potential effects on biodiversity, land use, community health and safety and climate change. It said the developer had secured environmental approvals required under Philippine regulations, although further assessments are needed.

Separately, the ADB is evaluating potential investments of as much as US$100 million each in private equity funds Creador VII and TPG Lotus Partners, which plan to invest in companies across Asia, including the Philippines. Both proposals are scheduled for consideration on 8 Dec 2026. The multilateral lender has also approved a US$30-million investment in the Emerging Asia Infrastructure Credit Fund and is considering an additional US$17.5 million commitment. The fund finances low-carbon infrastructure projects in emerging Asian markets, including the Philippines.