DBP nets P8.25B from latest bond offer

THE DEVELOPMENT Bank of the Philippines (DBP) has raised P8.25 billion in fresh funds from its second dual-tenor bond offering for this year.

DBP President and Chief Executive Officer Michael O. de Jesus said in a statement on Thursday that this was above the minimum issue size of P5 billion and marked the seventh drawdown under its expanded P150-billion bond program.

“DBP’s latest successful mobilization of the capital markets allows it to expand its funding base and subsequently, finance more projects and initiatives that complement President Ferdinand Marcos, Jr.’s vision of sustaining long-term economic expansion and promoting greater financial inclusion,” Mr. De Jesus said.

Broken down, the bank raised P3.457 billion from Series 7A Bonds that have a three-year tenor and a 5.8751% annual interest rate.

It also borrowed P4.793 billion from Series 7B Bonds, which have a tenor of five years and an interest rate of 6.1454% per annum.

DBP has enrolled the notes for trading at the Philippine Dealing and Exchange Corp.

China Bank Capital Corp. was the issue manager, sole arranger, and sole bookrunner for the transaction.

Proceeds from the issuance will be used for DBP’s general operating requirements, including funding source diversification, balance sheet expansion, and lending activities, Mr. De Jesus said.

“This latest bond issuance is also reflective of the unwavering trust and confidence of the market in DBP as a strong and relevant government financial institution, one that plays a crucial role in advancing sustainable and inclusive economic growth especially in unserved and underserved areas of the country.”

DBP last tapped the domestic bond market in January, raising P11 billion from a dual-tenor offering of 1.5- and three-year notes.

The state-run lender’s net income surged by 82% year on year to P1.608 billion in the first quarter as it continued to boost lending to its priority sectors. — A.M.C. Sy