DBP seeks broader role in financing big-ticket infra projects

State-owned Development Bank of the Philippines (DBP) on Friday expressed interest to have a broader role in financing big-ticket infrastructure projects of the government.

In a statement, DBP president and CEO Michael de Jesus said the state-run bank is keen to extend credit and technical assistance to major projects after it raised P8.75 billion in fresh funds from its latest local bond issuance.

“We hope to utilize proceeds from our Fixed-Rate Series 5 Bonds to boost credit support to our priority sectors while jumpstarting investments in the essential areas identified by the national government including Public-Private Partnership initiatives,” De Jesus said.

The bank recently completed its Series 5 Bonds issuance, raising nearly 4.4 times its minimum issue size of P2 billion. 

The bonds were offered at par value with an interest rate of 6.102% per annum.

De Jesus said apart from expanding the bank’s loan portfolio, the proceeds would also be used to finance general corporate requirements, including funding source diversification, and balance sheet expansion.

“With this issuance, DBP takes another crucial step to shore up economic recovery and resilience efforts in the post-pandemic era for the Philippines with the Bank leading the way in channeling much-needed capital into the economy while facilitating investments in key sectors to boost economic activity,” he said.

DBP is the eighth 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; the environment; and social services and community development.—AOL, GMA Integrated News