Government-controlled Development Bank of the Philippines (DBP), one of the funders of the Maharlika Investment Fund (MIF), said it is enhancing the way it finances government development projects, particularly in infrastructure, agriculture and tourism.
DBP President and CEO Michael O. de Jesus said Friday, Sept. 8, that they are improving the way it funds these projects.
“We are committed to formulating new and innovative ways to support investment transactions that will boost critical sectors such as infrastructure, agriculture, and tourism,” he said.
DBP, the country’s eighth biggest bank in asset size, is a key government strategic financier, especially to critical economic sectors such as infrastructure and logistics, micro, small and medium enterprises, social services, and the environment.
As of end-March, the bank has total assets of P985.835 billion, based on Bangko Sentral ng Pilipinas data. In the first six months of 2023, the bank reported profits of P4.42 billion, up 60 percent compared to same period last year of P2.76 billion. DBP is aiming for a full year net income of P5.2 billion.
Meanwhile, the bank said Friday it received five investment deal awards from the Investment House Association of the Philippines (IHAP) for its various public-private sector financing support to critical economic sectors such as infrastructure and logistics, micro, small and medium enterprises, social services, and the environment.
De Jesus said the IHAP recognition is important as it notes DBP’s “critical role as an essential developer and driver of the Philippine capital markets.”
IHAP is a non-stock, non-profit organization established in 1974 and a proponent of the domestic capital market development.
De Jesus said DBP has been cited for deals completed in 2022 such as Best Fixed Income Deal (Small Mid Cap) for Ada Manufacturing Corporation’s P1.5-billion Corporate Notes Deal to support its farm mechanization of the Rice Competitiveness Enhancement Fund.
DBP was also awarded Best Project Finance Deal (Large Cap) for its role in SMC SLEX Holdings Company Inc.’s P20-billion Syndicated Term Loan Facility to finance the expansion of the South Luzon Expressway.
“We are humbled and honored to be recognized alongside other full-service investment houses in the country. These awards truly highlight our unwavering commitment to strengthen and develop the investment banking and capital markets by providing advisory, and debt syndication services to our valued clients,” said de Jesus.
Last year, IHAP also awarded DBP for its P16 billion Cebu Air Inc.’s fund raising advisory deal, the P23 billion loan facility advisory deal of GMR Megawide Cebu Airport, and the P800 million fixed income deal for Science Park of the Philippines.
For the first six months of 2023, DBP's infrastructure and logistics loans totaled P281.59 billion while loans to social infrastructure and community development stood at P110.03 billion.
About 55.5 percent of the bank's total portfolio of P507 billion were released to fund public infrastructure projects under the government's “Build Better More” program in the National Capital Region, Central Visayas, Davao, and Central Luzon.
DBP also approved P35.38 billion worth of loans for the agriculture sector, P54.43 billion for environment-related projects, and P30.23 billion for SMEs.