Sign in Subscribe
Economic development

DBP Raises P8.25 Billion from Latest Bond Issuance

Strategic Insights

— 2 min read

The State-owned Development Bank of the Philippines (DBP) has successfully raised P8.25 billion from its latest dual local bond offering, underscoring the bank's ability to tap into the local debt market effectively. The bond issuance was 1.65 times oversubscribed, allowing DBP to upsize from the initial minimum issue size of P5 billion. The proceeds will support more projects aligned with the government's economic development agenda. DBP president and CEO Michael de Jesus stated that the bank's latest successful mobilization of the capital markets will enable it to expand its funding base and finance more projects that complement President Ferdinand Marcos Jr.'s vision of sustaining long-term economic expansion and promoting greater financial inclusion.

Key Takeaways:

  • DBP raised P8.25 billion from its latest dual local bond offering, with the bond issuance being 1.65 times oversubscribed, allowing the bank to upsize from the initial minimum issue size of P5 billion.
  • The proceeds from the bond issuance will support more projects aligned with the government's economic development agenda.
  • DBP president and CEO Michael de Jesus stated that the bank's latest successful mobilization of the capital markets will enable it to expand its funding base and finance more projects that complement President Ferdinand Marcos Jr.'s vision of sustaining long-term economic expansion and promoting greater financial inclusion.
  • DBP sold about P3.46 billion 7A bonds priced to yield 5.8751 percent per annum over a three-year tenor.
  • DBP also raised P4.79 billion from the sale of 7B five-year bonds at an interest rate of 6.1454 percent per annum.
  • China Bank Capital Corporation acted as issue manager, sole arranger, and sole bookrunner for the issuance.
  • The bonds have been enrolled and are now traded through the Philippine Dealing and Exchange Corp.
  • DBP is the 10th largest bank in the country in terms of assets.
  • DBP provides credit support to four priority sectors of the economy: infrastructure and logistics; micro, small and medium enterprises; environment; and social services and community development.

Statistics:

  • P8.25 billion: the amount raised by DBP from its latest dual local bond offering.
  • 1.65 times: the oversubscription ratio of the bond issuance, allowing DBP to upsize from the initial minimum issue size of P5 billion.
  • P3.46 billion: the amount raised from the sale of 7A bonds priced to yield 5.8751 percent per annum over a three-year tenor.
  • P4.79 billion: the amount raised from the sale of 7B five-year bonds at an interest rate of 6.1454 percent per annum.
  • 5.8751 percent: the annual yield of the 7A bonds.
  • 6.1454 percent: the annual interest rate of the 7B bonds.
  • P5 billion: the initial minimum issue size of the bond issuance.

Sources:

  • State-owned Development Bank of the Philippines (DBP)
  • DBP president and CEO Michael de Jesus
  • China Bank Capital Corporation
  • Philippine Dealing and Exchange Corp.

Read more