State-owned Development Bank of the Philippines (DBP) has successfully raised P11 billion under its latest local bond issuance as part of efforts to diversify its funding sources in anticipation of increased lending activities this year, a top official said.
DBP President and CEO Michael O. de Jesus said that the Bank’s Fixed Rate Series 6A Bonds and Fixed Rate Series 6B Bonds were oversubscribed by five-and-a-half times over the minimum offer size of P2-billion.
“This latest bond issuance is a testament to the trust and confidence of the market in DBP as a government financial institution and allows the Bank to expand its funding sources even as it ramps up its lending activities in support of the Marcos Administration’s economic agenda,” de Jesus said.
DBP is the 10th 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.
The DBP Fixed Rate Series 6A bonds was offered at an interest rate of 6.0503% per annum with a tenor of 1.5 years while the 6B bonds has a tenor of three years with an interest rate of 6.1294% per annum.
De Jesus said that the DBP bonds, which were enrolled and traded through the Philippine Dealing & Exchange Corporation, represent the sixth tranche of the Bank’s P150-billion bonds program with the proceeds for financing loans to clients or supporting its own operating activities.
He said this marks the first time that DBP issued two tenor bonds, adding “…the Bank is committed to offer tailored solutions to meet the diverse needs of its investors while also supporting its critical development goals…”
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