State-owned Development Bank of the Philippines (DBP) has successfully raised P3.875 billion in fresh funds through its latest local bond issuance, which would be channeled to various developmental projects and initiatives for its key priority sectors, a top official said.
DBP President and Chief Executive Officer Michael de Jesus said the bank’s 1.5-year Fixed Rate Series 4 bond issuance reached more than 3.6 times the announced minimum issue size of P2 billion for the Series 4 bonds, which culminates its four-year P55 billion Sustainable Bond Program.
“Notwithstanding the volatile market backdrop, we are buoyed by the strong support from institutional investors, which allowed us to price at our tightest ever spread of 10 basis points over the relevant benchmark,” de Jesus said. “The overwhelming reception of DBP’s issuance resulted in closing the offering period earlier than expected.”
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; environment; social services and community development.
Prior to the latest issuance, DBP issued two bond offerings — an offshore bond that raised $ 300 million in 2021 which was rated “BBB” by Fitch Ratings, and an onshore bond offering in 2022that fetched P12-billion via private placement.
