State-owned Development Bank of the Philippines (DBP) has extended a P700-million seven-year syndicated term loan to Science Park of the Philippines, Inc. (SPPI) to finance the company’s development projects to meet rising demand amidst the steady recovery of the manufacturing sector, a top official said.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said the loan was granted with Rizal Commercial Banking Corporation as co-lender and the Investment & Capital Corporation of the Philippines as financial adviser and lead arranger.
“DBP recognizes this financial collaboration as a strategic and huge step in advancing the country’s infrastructure landscape which can spur further economic development,” Herbosa said.
DBP is the fifth 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; the environment; and social services and community development.
SPPI was established in 1989 and has developed four Philippine Economic Zone Authority-registered industrial parks with an aggregate area of nearly 800 hectares in Laguna, Batangas, Bataan, and Cebu. It is constructing two more facilities in Bataan and Batangas, which is equipped with proper road network and storm drainage system, water distribution, wastewater treatment, power, telecommunications, among others.
Herbosa said proceeds of the loan would be used to partially finance current and future projects and capital expenditures such as land development, road system construction, water utilities and a centralized wastewater system.
He said DBP foresees more locators coming into industrial parks such as SPPI’s as the country continues to strengthen its position as a viable site to host firms in the manufacturing, logistics, electronics, semiconductors, packaging, food, and other industries.
“DBP will continue to work with various institutions and economic key players who share with us the same mission of promoting growth opportunities, while raising the level of competitiveness of our country through infrastructure development,” Herbosa said.