DBP raising P5B from bond issuance

Published November 27, 2020, 12:03 PM

by Emmie V. Abadilla

DBP President and Chief Executive Officer Emmanuel G. Herbosa

The Development Bank of the Philippines (DBP) is raising at least P5 billion from the second issuance of Peso-denominated Bonds from its P50-billion bond to fund development projects in priority sectors.

The DBP Bonds, which will have a tenor of two years, will be offered to the public from November 24, 2020 until December 4, 2020 with a 2.500 percent interest rate, subject to adjustments of the offer period.

“Even before the pandemic, we already planned to raise additional funds from our bond program,” DBP President and Chief Executive Officer Emmanuel G. Herbosa explained.

“The second bond issuance will augment our funding requirements as we lend more priority sectors, especially in the wake of pandemic and the recent typhoons.”

DBP is the seventh 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, DBP raised P18.125-billion in Sustainability Bonds from the initial tranche of its programmed P50-billion bond program.

The bank used the proceeds to fund projects on economic inclusion exclusively.

These include climate change mitigation and adaptation, natural resource conservation, pollution control and prevention and other social development initiatives.

Proceeds from the second issuance will be used for renewable energy projects, green buildings, clean transportation, energy efficiency, pollution prevention and control, and climate change adaption projects, among others, under the bank’s Sustainable Financing Framework.

Other eligible projects include affordable basic infrastructure and houses, as well as initiatives that promote access to essential services, employment generation, food security, as well as socioeconomic advancement and empowerment.

“Our successful issuance of Sustainability Bonds last year strengthened our resolve to support endeavors that impact, not only communities, but also the environment,” Herbosa stressed.

Last year, 83 percent of the bond proceeds were allocated to 15 projects in sustainable and renewable energy, while the rest was allocated for water supply and health care projects, according to DBP First Vice President for Corporate Finance Francis Nicolas M. Chua.

This year’s fund-raising activity will enable the bank to spearhead projects in line with its development goals and reach a wider network of stakeholders, especially in the countryside.

“Apart from offering a safe haven for investment in uncertain times, the bonds provide the public an opportunity to partake in the larger goal of nation-building,” Chua commented.

Standard Chartered Bank has been assigned as issue manager while Standard Chartered Bank and China Bank Capital Corporation will be the joint lead arrangers and bookrunners.

Selling agents for the offer, other than DBP, include Amalgamated Investment Bancorporation, China Banking Corporation, China Bank Capital Corporation and Standard Chartered Bank.

Interested investors may visit any DBP branch nationwide.