State-owned Development Bank of the Philippines has successfully raised P8.25 billion in fresh funds from its latest dual local bond offering as it continues to diversify its funding sources to support more projects aligned with the National Government’s economic development agenda, a top official said.
DBP President and Chief Executive Officer Michael O. de Jesus said the Bank’s latest bond issuance under its expanded P150-billion bond program was 1.65-times oversubscribed from the minimum issue size of P5-billion.
“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 is the 10th largest bank in the country in terms of assets and provides credit support to four priority sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; the environment; and social services and community development.
DBP’s seventh tranche of fixed-rate series bonds consisted of the P3.457 billion 7A Bonds offered at a 5.8751% annual interest rate and a three-year tenor and the P4.793 billion 7B Bonds with an interest rate of 6.1454% per annum and a tenor of five years.
De Jesus said the bonds were enrolled and traded through the Philippine Dealing and Exchange Corporation with China Bank Capital Corporation as issue manager, sole arranger, and sole bookrunner.
He said proceeds from the latest issuance would be used for the Bank’s 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.