State-owned Development Bank of the Philippines (DBP) expressed renewed interest in providing financing to critical public infrastructure projects as it seeks optimal mobilization of the P8.75 billion in fresh funds from its latest local bond issuance, a top executive said.
DBP president and chief executive Michael 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, road networks including water amid 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.
DBP 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.
DBP earlier 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 offered at par value with an interest rate of 6.102 percent 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 clearly demonstrates its confidence in its market niche and capacity to meet the evolving financial needs of its 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 channeling much-needed capital into the economy while facilitating investments in key sectors to boost economic activity,” de Jesus said.
