DEVELOPMENT Bank of the Philippines (DBP) raised P3.875 billion from its issuance of 1.5-year bonds, it said on Thursday.
Proceeds from the issuance of fixed-rate Series 4 bonds will be used for various developmental projects and initiatives for its key priority sectors, the state-run lender said in a statement.
The fresh funds will also be used to boost loan growth, expand the bank’s balance sheet, and diversify its funding sources amid rising demand.
The issue was upsized from the initial offer of P2 billion, DBP said.
The bonds are the last to be issued out of the bank’s four-year P55-billion sustainable bond program.
The papers, which will mature by January 2025, were offered at par value with an interest rate of 6.4126% per annum.
The bonds were enrolled and can be traded through the Philippine Dealing & Exchange Corp.
“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. The overwhelming reception of DBP’s issuance resulted in closing the offering period earlier than expected,” DBP President and Chief Executive Officer Michael O. de Jesus said.
Standard Chartered Bank and China Bank Capital were the joint lead arrangers and bookrunners for the issue, with Standard Chartered also being the issue manager.
The bond offer was done via private placement, with participation limited to qualified institutional buyers, Mr. De Jesus said.
“DBP’s latest bond is a tangible manifestation of the bank’s proactive stance to offer investors with an opportunity to be part of the noble goal of supporting efforts to stimulate the economy and actively contribute to the country’s steady recovery,” Mr. De Jesus said.
In 2021, DBP raised $300 million from bonds that were rated “BBB” by Fitch Ratings. In 2022, it borrowed P12 billion via private placement in an onshore bond offer.
DBP was the eighth-largest bank in the country in terms of assets at end-March with P975.84 billion, central bank data showed.
The lender saw its net income rise by 17% year on year to P1.23 billion in the first quarter, exceeding its P820-million target. — AMCS