DBP Nets P11 Billion in Dual Bonds Offering

The state-owned Development Bank of the Philippines (DBP) successfully raised P11 billion through its most recent local bond issuance, as part of efforts to diversify its financing sources in anticipation of increased lending activity this year, according to a top official.

​DBP President and CEO Michael O. de Jesus stated that 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 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 country's tenth largest bank in terms of assets, providing financing to four important sectors of the economy: infrastructure and logistics; micro, small, and medium businesses; the environment; and social services and community development.

The DBP Fixed Rate Series 6A bonds were offered at a 6.0503% annual interest rate with a 1.5-year tenor, while the 6B bonds had a three-year tenor and an annual interest rate of 6.1294%.
 
De Jesus stated that the DBP bonds, which were enrolled and traded through the Philippine Dealing & Exchange Corporation, are the sixth tranche of the Bank's P150-billion bond program, with revenues used to provide loans to clients or fund its own operational 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.”