DBP to issue P5-B Tier 2 unsecured subordinated notes

MANILA — Stateowned Development Bank of the Philippines (DBP) will be issuing a P 5-billion Basel III compliant Tier 2 unsecured subordinated notes qualifying as Tier 2 capital of the bank to support its various developmental initiatives.

The Tier 2 unsecured subordinated notes to be issued will mature 10 years from issuance.

DBP has an option to redeem the Tier 2 unsecured subordinated notes after 5 years from issue date, subject to prior approval by the Bangko Sentral ng Pilipinas. DBP also has the option to redeem the notes on any other date prior to maturity but not prior to the 5th anniversary of the issue date, subject to redemption conditions and the required regulatory approval. The minimum investment size for the notes is P 500,000, and additional investments shall further be available in integral multiples of P 100,000. The tentative issue date is on November 15, 2013.

DBP remains a toprated Philippine bank, with a BBB- rating from Standard and Poor’s and a BB+ rating from Fitch Ratings. It registered a 46% increase in its net income for the first half of 2013, amounting to P 2.8 billion, compared to P 1.9 billion for the same period last year, on the strength of increases in loan portfolio and deposits.

DBP has appointed Standard Chartered Bank as the sole global coordinator and one of the joint lead arrangers and joint bookrunners. BPI Capital Corporation, Deutsche Bank AG Manila Branch, PNB Capital and Investment Corporation are the other joint lead arrangers and joint bookrunners.

SB Capital Investment Corporation is the colead manager and selling agent while Multinational Investment Corporation is the market maker and selling agent. Registry and paying agent is Deutsche Bank AG, Manila Branch - Direct Securities Services while Land Bank of the Philippines-Trust Banking Group is public trustee. (PNA)