QUEZON CITY (PIA) -- State-owned Development Bank of the Philippines (DBP) has successfully raised P12-billion in fresh funds through its latest bond issuance, which would be used to support various developmental projects and initiatives in its priority sectors, a top official said in a statement.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said the bank’s 2.5 Year-Fixed Rate Series 3 Bonds or Primus 3 issuance was four times oversubscribed of its P3-billion target.
“We have raised over P12-billion after a one-week offer period and this reflects the debt market’s confidence on DBP as a stable financial institution,” Herbosa said. “The vigorous demand for the bonds would enable the Bank to support and buttress both ongoing and future programs.”
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; environment; social services and community development. Last year, the Bank’s second offshore bond offering raised US$300-million and was rated ‘BBB’ by credit rating agency Fitch Ratings.
Herbosa said unlike the previous Primus 1 and 2 bond issuances of DBP, the distribution of Primus 3 was via private placement, with participation limited to Qualified Institutional Buyers.
He said the bonds were offered at par value with an interest rate of 4.05 percent per annum with a tenor of 2.5-year tenor, which is set to mature in November 2024, adding the, “…bonds were enrolled and traded through the Philippine Dealing & Exchange Corporation...”
“DBP’s latest bond is a tangible manifestation of the Bank’s proactive stance to offer investors with an opportunity to be part of the noble goal of supporting efforts to stimulate the economy and actively contribute to the country’s steady recovery…”
DBP tapped Standard Chartered Bank as Issue Manager and together with China Bank Capital, as Joint Lead Arrangers and Bookrunners. (DBP PR / AVS / PIA-NCR)
