The state-owned Development Bank of the Philippines (DBP) raised P8.25 billion from a dual-tranche bond offering, the bank announced on Thursday.
The sale, which was 1.65 times oversubscribed, aims to diversify the lender’s funding sources and expand its capacity for lending programs.
The offer is the seventh tranche of DBP’s P150-billion bond program. It included P3.457 billion in three-year bonds priced at an annual interest rate of 5.8751 percent, and P4.793 billion in five-year bonds yielding 6.1454 percent per annum.
DBP President and CEO Michael de Jesus said the proceeds would be used for “funding source diversification, balance sheet expansion, and to increase its loanable funds.”
DBP, the Philippines‘ 10th-largest bank by assets, focuses its lending on four key sectors: infrastructure and logistics; micro, small, and medium enterprises; environmental projects; and social services and community development. The bonds are listed and traded on the Philippine Dealing and Exchange Corporation. China Bank Capital Corporation served as the issue manager, sole arranger, and sole bookrunner for the offering.
