State-owned Development Bank of the Philippines (DBP) is targeting to raise a minimum of P5 billion from its second issuance of Peso-denominated bonds, of which the proceeds will be used to finance development projects in priority sectors.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said the latest P5-billion bond offering forms part of the bank’s P50-billion bond program.
“Even before the onset of the pandemic, we already planned to raise additional funds from our bond program to augment our funding requirements as DBP pushes to lend more to its priority sectors, especially in the wake of the (coronavirus) pandemic and the recent typhoons that have struck the country,” Herbosa said.
The latest bond offering will have a tenor of two years, with the offer period running from November 24 to December 4, 2020. It will have an interest rate of 2.5 percent, subject to adjustments during the offer period.
Herbosa said that proceeds from the latest bond issuance will be utilized for renewable energy projects, green buildings, clean transportation, energy efficiency, pollution prevention and control, and climate change adaption projects, among others, under the bank’s Sustainable Financing Framework, as well as for other projects in line with the bank’s mandate.
He said other eligible projects include affordable basic infrastructure and housing, as well as initiatives that promote access to essential services, employment generation, food security, as well as socioeconomic advancement and empowerment.
In 2019, DBP raised P18.125 billion from its Sustainability Bond offering that formed the the initial tranche of its programmed P50-billion bond program, of which the proceeds were exclusively used for projects on economic inclusion; climate change mitigation and adaptation, and natural resource conservation, and pollution control and prevention; and other social development initiatives.
“Our successful issuance of Sustainability Bonds last year has further strengthened our resolve to support endeavors that have an impact not only on communities but also on our environment,” Herbosa said.
Standard Chartered Bank has been assigned as issue manager while joint lead arrangers and bookrunners are Standard Chartered Bank and China Bank Capital Corporation. Selling agents for the offer, other than DBP, are Amalgamated Investment Bancorporation, China Banking Corporation, China Bank Capital Corporation and Standard Chartered Bank. Interested investors may visit any DBP branch nationwide.
DBP is the seventh 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. CURRENTPH