State-owned Development Bank of the Philippines (DBP) has successfully raised P11 billion in its latest local bond issuance, a top official said. This move is part of the bank's efforts to diversify its funding sources in anticipation of increased lending activities this year.
DBP President and CEO Michael O. de Jesus said the bank's Fixed Rate Series 6A Bonds and Fixed Rate Series 6B Bonds were oversubscribed by five and a half times the minimum offer size of P2 billion.
“This latest bond issuance is a testament to the market's trust and confidence in DBP as a government financial institution," de Jesus said. "It allows the bank to expand its funding sources as it ramps up lending activities in support of the Marcos Administration’s economic agenda.”
DBP is the 10th largest bank in the country in terms of assets. It provides credit support to four strategic sectors of the economy: infrastructure and logistics; 1 micro, small, and medium enterprises; environment; and social services and community development.
The DBP Fixed Rate Series 6A bonds were offered at an interest rate of 6.0503% per annum with a tenor of 1.5 years, while the 6B bonds have a tenor of three years with an interest rate of 6.1294 percent per annum.
De Jesus said the DBP bonds, which were enrolled and traded through the Philippine Dealing & Exchange Corporation, represent the sixth tranche of the bank’s P150-billion bond program. The proceeds will finance loans to clients or support the bank's operating activities.
He noted this is the first time DBP has issued two tenor bonds. "[The] Bank is committed to offering tailored solutions to meet the diverse needs of its investors while also supporting its critical development goals," he added.