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DBP eyes raising P5-B from sustainability bonds


State-owned Development Bank of the Philippines (DBP) is looking to raise P5-billion from the initial tranche of its proposed P50-billion Sustainability Bond Programme aimed at financing environmental and social projects eligible under its Sustainability Finance Framework, a top official said.

DBP President and Chief Executive Officer Emmanuel G. Herbosa said during the institutional investors’ briefing held today at the DBP head office in Makati City that proceeds from the bonds will be exclusively used to fund projects that contribute to economic inclusion; environmental objectives such as climate change mitigation and adaptation, natural resource conservation, and pollution control and prevention; as well as projects that directly address or mitigate a specific social issue.

“As a development financing institution, DBP has always been at the forefront of sustainable development and environmental protection.  The DBP Sustainability bonds issuance affirms our commitment to continue supporting initiatives that have an impact not only on communities but also on our environment,” he said.

DBP’s proposed two-year bonds have an initial pricing guidance of 4.25% per annum with final pricing targeted to be determined on October 18, 2019.  This will be followed by an eight-day public offer period.  Issue and listing date is targeted on November 11, 2019.

Herbosa said DBP’s sustainability framework provides for proceeds being raised to fund or refinance new and existing green or social assets.  “We are working with the Securities and Exchange Commission to align the bond issuance with ASEAN Sustainability Bonds Standards, given their Sustainability Framework.”

Standard Chartered Bank is the Structuring Advisor and Issue Manager, and together with China Bank Capital, the Joint Lead Arrangers, for the establishment of DBP’s P50-billion Sustainability Bond Programme.

Standard Chartered Bank Philippines Chief Executive Officer Lynette V. Ortiz shared that current market conditions have been conducive for capital markets issuances.  “We take great pride in having been able to assist DBP in structuring its Sustainability Bond framework to align with international standards.”

China Bank Capital Corporation President Ryan Martin L. Tapia, meanwhile, said:  “It has been awhile since DBP last tapped the Philippine capital markets and their proposed issuance not just provides for a sound investment for our portfolio managers and retail investors, but also brings another opportunity for direct investing in nation building.”