The Development Bank of the Philippines (DBP) is eyeing to raise at least P5 billion from a bond offering to finance green projects under its Sustainable Financing Framework.
The 2-year bonds carry an interest rate of 2.5 percent. The offer period started on November 24 and will end on December 4.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said the proceeds of the offering will be allocated to fund renewable energy projects, green buildings, clean transportation, energy efficiency, pollution prevention and control and climate change adaptation projects, among others.
Apart from these, other projects eligible for financing are affordable basic infrastructure and houses, initiatives promoting access to essential services, employment generation, food generation and socioeconomic advancement and empowerment.
“Even before the onset of the pandemic, we already planned to raise additional funds from our bond program to augment our funding requirements as DBP pushes to lend more to its priority sectors, especially in the wake of pandemic and the recent typhoons that have struck the country,” Herbosa said.
The bond offering is the second issuance from its P50-billion bond program, which is aimed at funding development projects in priority sectors.
Standard Chartered Bank was tapped to be the transaction’s issue manager. It, along with China Bank Capital Corp., was also the joint lead arrangers and bookrunners.
The selling agents are the DBP, Amalgamated Investment Bancorporation, China Bank Corp., China Bank Capital Corp. and Standard Chartered Bank.
Last year, DBP raked in P18.125 billion from sustainability bond issuance under the same bond program. Proceeds were allocated on project on economic inclusion; climate change mitigation and adaptation, natural resource conservation and pollution control and prevention and other social development initiatives.
“Our successful issuance of Sustainability Bonds last year has further strengthened our resolve to support endeavors that have an impact not only on communities but also on our environment,” Herbosa said.
DBP First Vice President for Corporate Finance Francis Nicolas M. Chua said that 83 percent of the proceeds were channeled to 15 sustainable and renewable energy projects. The rest was for water supply and healthcare projects.
“Apart from offering a safe haven for investment especially during uncertain times, the bonds also provide the public an opportunity to partake in the larger goal of nation-building,” Chua said.