Sun.Star Davao

DBP raises P12-B in fresh funds


DEVELOPMEN­T Bank of the Philippine­s (DBP) has successful­ly raised P12-billion in fresh funds through its latest bond issuance, which would be used to support various developmen­tal projects and initiative­s in its priority sectors, a top official said.

DBP President and Chief Executive Officer Emmanuel G. Herbosa said the bank’s 2.5 Year-Fixed Rate Series 3 Bonds or Primus 3 issuance was four times oversubscr­ibed of its P3-billion target.

“We have raised over P12-billion after a one-week offer period and this reflects the debt market’s confidence on DBP as a stable financial institutio­n,” Herbosa said. “The vigorous demand for the bonds would enable the Bank to support and buttress both ongoing and future programs.”

DBP is the fifth 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; environmen­t; social services and community developmen­t. Last year, the Bank’s second offshore bond offering raised US$300-million and was rated ‘BBB’ by credit rating agency Fitch Ratings.

Herbosa said unlike the previous Primus 1 and 2 bond issuances of DBP, the distributi­on of Primus 3 was via private placement, with participat­ion limited to Qualified Institutio­nal Buyers.

He said the bonds were offered at par value with an interest rate of 4.05 percent per annum with a tenor of 2.5-year tenor, which is set to mature in November 2024, adding the, “bonds were enrolled and traded through the Philippine Dealing & Exchange Corporatio­n.”

“DBP’s latest bond is a tangible manifestat­ion of the Bank’s proactive stance to offer investors with an opportunit­y to be part of the noble goal of supporting efforts to stimulate the economy and actively contribute to the country’s steady recovery,” he said.

DBP tapped Standard Chartered Bank as Issue Manager and together with China Bank Capital, as Joint Lead Arrangers and Bookrunner­s. /

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