By Francis Allan L. Angelo
The Development Bank of the Philippines (DBP), the state-owned banking institution, has declared a strategic move to enhance its investment in pivotal public infrastructure projects.
This initiative comes with the proactive mobilization of P8.75-billion, amassed from the bank’s latest local bond issuance.
Michael O. de Jesus, the President and Chief Executive Officer of DBP, outlined the bank’s commitment to proffering both financial aid and technical guidance to entities geared towards bolstering sectors vital to national security and growth, such as food security, energy, and telecommunications.
This effort has gained urgency in light of the pressing demands imposed by the El Niño weather pattern, threatening to exacerbate water scarcity.
“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 remarked, indicating a focused strategy to energize key segments of the economy.
Standing as the eighth largest bank by assets in the Philippines, DBP’s credit support extends to four main economic pillars: infrastructure and logistics, MSMEs, environmental initiatives, and the augmentation of social services and community development.
This expansion of financial engagement follows the bank’s substantial bond issuance this month, attracting nearly 4.4 times the anticipated minimum of P2-billion, with the bonds carrying an interest rate of 6.102% per annum.
Beyond expanding the bank’s loan portfolio, de Jesus emphasized the dual application of the fresh capital, which will also underpin general corporate needs such as funding source diversification and balance sheet growth.
“This maiden issuance under DBP’s upsized Bond Programme of P150-billion demonstrates our robust confidence in our market niche and our unwavering commitment to address the evolving financial demands of our clientele and partners,” he asserted.
The move by DBP is envisioned as a cornerstone for catalyzing post-pandemic economic recovery and bolstering national resilience.
“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 channeling much-needed capital into the economy while facilitating investments in key sectors to boost economic activity,” de Jesus conveyed.
The DBP Fixed-Rate Series 5 Bonds, set to mature in 2025, are actively engaged in the Philippine Dealing & Exchange Corporation.
China Bank Capital Corporation has been appointed as the Issue Manager, Sole Arranger, and Sole Bookrunner, marking another significant milestone in the bank’s ongoing narrative of economic stewardship.
