The state-owned Development Bank of the Philippines (DBP) has successfully raised P3.875 billion in fresh funds via its recent local bond issuance.
This bond issuance is part of the bank’s four-year P55-billion Sustainable Bond Program and will be directed towards various developmental initiatives in key priority sectors, including infrastructure, micro, small, and medium enterprises, environment, and social services.
Bankero Michael de Jesus, DBP’s President and CEO, expressed satisfaction with the strong investor support, allowing the bank to price the bonds at a tight spread of 10 basis points over the benchmark, and noted the earlier-than-expected closing of the offering period.
The proceeds will also contribute to future loan growth, balance sheet expansion, and diversification of funding sources amid economic recovery and expansion.
The Series 4 bonds, with an interest rate of 6.4126 percent per annum and a 1.5-year tenor, were distributed through private placement to Qualified Institutional Buyers, consistent with DBP’s approach in 2022.