State-owned Development Bank of the Philippines (DBP) said Thursday it raised P8.25 billion from its latest dual local bond offering, as it diversifies funding to support government economic development projects.
The offering, part of DBP’s expanded P150-billion bond program, was 1.65 times oversubscribed from its minimum issue size of P5 billion, DBP president and chief executive Michael de Jesus said.
“DBP’s latest successful mobilization of the capital markets allows it to expand its funding base and subsequently, finance more projects and initiatives that complement President Ferdinand Marcos, Jr.’s vision of sustaining long-term economic expansion and promoting greater financial inclusion,” de Jesus said.
DBP, the Philippines’ 10th largest bank by assets, provides credit support to infrastructure and logistics; micro, small and medium enterprises; the environment; and social services and community development.
The seventh tranche of fixed-rate series bonds included P3.457 billion in 7A Bonds with a 5.8751-percent annual interest rate and a three-year tenor and P4.793 billion in 7B Bonds with an interest rate of 6.1454 percent per annum and a five-year tenor.
The bonds were enrolled and traded through the Philippine Dealing and Exchange Corp., with China Bank Capital Corp. acting as issue manager, sole arranger and sole bookrunner.
DBP said it would use the proceeds for general corporate requirements including funding source diversification, balance sheet expansion and broadened support for strategic lending activities.
“This latest bond issuance is also reflective of the unwavering trust and confidence of the market in DBP as a strong and relevant government financial institution, one that plays a crucial role in advancing sustainable and inclusive economic growth especially in unserved and underserved areas of the country,” de Jesus said.
