A top official of the Development Bank of the Philippines (DBP) recently expressed renewed interest in financing critical public infrastructure projects in the country as it seeks optimal mobilization of fresh funds it acquired from its latest local bond issuance.
The said capital is worth at least P8.75 billion.
DBP President and Chief Executive Officer Michael O. de Jesus said the bank is keen on extending credit and technical assistance to both public and private firms that would invest in key areas such as food security, energy, agro-industrial ventures, telecommunications, and road networks including water amidst rising demand heightened by the onset of the El Niño phenomenon.
“We hope to utilize proceeds from our Fixed-Rate Series 5 Bonds to boost credit support to our priority sectors while jumpstarting investments in the essential areas identified by the National Government including Public-Private Partnership initiatives,” de Jesus said.
IMAGE CREDIT: https://www.dbp.ph/
The state-owned bank is the eighth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small, and medium enterprises; the environment; and social services and community development.
Earlier this month, DBP completed its successful Series 5 Bonds issuance, which was almost 4.4 times greater than the minimum issue size of P2 billion.
The bonds were also offered at par value with an interest rate of 6.102% per annum.
De Jesus said apart from expanding the Bank’s loan portfolio, the proceeds would also be used to finance general corporate requirements, including funding source diversification, and balance sheet expansion.
He said that the maiden issuance under DBP’s upsized Bond Program worth P150 billion demonstrates its confidence in its market niche and capacity to meet the ever-evolving financial needs of both clients and partners.
“With this issuance, DBP takes another crucial step to shore up economic recovery and resilience efforts in the post-pandemic era for the Philippines with the bank leading the way in channelling much-needed capital into the economy while facilitating investments in key sectors to boost economic activity,” de Jesus further stated.
The DBP Fixed-Rate Series 5 Bonds, which fall due in 2025, have since been enrolled and traded through the Philippine Dealing & Exchange Corporation (PDEC), with China Bank Capital Corporation tapped as Issue Manager, Sole Arranger, and Sole Bookrunner.